Tether (USDT) is the first and most widely used stablecoin in the crypto market worldwide. It is pegged to the US dollar at a 1 to 1 ratio and backed by Tether's reserves.

What advantages does Tether offer? It provides all the benefits of a cryptocurrency, such as digital payment transfers, decentralized design, and the advantages of blockchain technology. However, it also offers the advantage of being immune to the high volatility experienced by other cryptocurrencies like Bitcoin and Ethereum, thanks to its pegging mechanism.

Think of the USDT token as a blockchain-based equivalent to the US dollar. Its main strength lies in its price stability mechanism, making it a convenient way to conduct digital transactions without worrying about price fluctuations.

As of March 2023, Tether has a market cap of over $71 billion and is among the top 5 digital assets by market cap. It is also the leading stablecoin pegged to the US dollar in terms of trading volume and circulating supply. Tether is widely adopted by crypto investors and DeFi consumers.

Tether's USDT operates by combining the stability and security of fiat currencies with the capabilities of blockchain technology. This results in a decentralized and user-friendly payment option, particularly useful for facilitating quick cross-border transactions.

Due to the absence of intermediaries such as banks and financial institutions, USDT transactions offer rapid settlement times, reduced transaction costs, and greater transparency compared to traditional banking and finance systems.

Tether tokens are designed to have a 1-to-1 peg with fiat currencies, meaning that 1 USDT is equivalent to 1 USD, ensuring that the Tether price closely mirrors that of the United States dollar. Users can deposit fiat currency into Tether's bank account and receive an equivalent amount of Tether tokens in their crypto wallets. These USDT tokens can then be used for transactions, trading, or held like other cryptocurrencies, without the concern of sudden Tether price fluctuations that could result in capital loss.

Whenever users sell their USDT for fiat currency, Tether reduces the total supply of tokens. This measure ensures that Tether's price remains pegged to the US dollar and maintains stability.

Tether, originally known as Realcoin, was launched in 2014 as a Layer-2 cryptocurrency built on the Bitcoin blockchain. Over time, it underwent two name changes, first to USTether and then to Tether (USDT).

The co-founders of Tether (USDT) were Brock Pierce, Craig Sellers, and Reeve Collins. Their goal was to maintain a 1:1 peg between the USDT price and the US dollar. Initially designed to work on the Bitcoin network using the Omni protocol, Tether later expanded its compatibility to include Ethereum, EOS, TRON, Algorand, and OMG blockchain networks. On Ethereum, USDT tokens function as ERC-20 tokens.

However, Tether faced controversies regarding the lack of complete transparency in their audited financial statements, which raised concerns about the backing of their USDT coins with USD reserves. To address these concerns, Tether announced its banking partners in November 2018.

In March 2019, Tether made an announcement stating that the USDT tokens were not fully backed by US dollar deposits. Instead, they claimed that the USDT token was backed by a combination of reserves, including USD, cash equivalents, and other assets and receivables from loans made by the company.

Are you wondering how to convert USDT back into USD or any other fiat currency? It's actually quite simple. All you need to do is sell your USDT on crypto exchanges or some crypto payment providers that support Tether trading. Just make sure to check the live price of USDT in your local fiat currency before placing the sell order.

Once you have successfully sold your USDT, you will receive the equivalent amount of USD or your local fiat currency. This can then be withdrawn into your bank account. Keep in mind that there might be a transaction processing fee charged by BYDFi for the withdrawal.

If you are using BYDFi, you can convert USDT to fiat currency after completing the KYC verification on your account. Simply withdraw your USDT coins from your trading account into your bank account in the form of your local currency. Alternatively, you can also sell USDT on our P2P market to convert Tether into fiat currencies based on the latest USD value and Tether price.

Purchasing Goods and Services From Stores

Tether's USDT can be used as a payment method to purchase goods and services in physical and online stores that support it. Making digital payments with Tether is convenient because the price remains constant.

Sending and Receiving Payments Almost Instantly

You can also use USDT to send and receive payments from other users and businesses around the world almost instantly. Tether charges lower transaction fees compared to conventional payment methods like fiat currencies. It is especially beneficial for fast and cheap cross-border payments.

Trading Cryptocurrencies on Exchanges

You can trade Tether against many cryptocurrencies to expand your crypto portfolio and capital. USDT, with the largest market cap and circulating supply among stablecoins, is a popular base digital asset for trading cryptocurrency pairs on leading exchanges like BYDFi. It offers high liquidity and trading volume across CEX and DEXs, making buying and selling cryptos quick and convenient.

Earning Passive Income on BYDFi

You can generate passive revenue with your USDT holdings on various platforms. On BYDFi, you can lend USDT or stake USDT to earn attractive returns and put your stablecoins to work.

Is Tether a good investment? Tether presents an exciting concept for holding or investing in crypto assets. Unlike other cryptocurrencies that are prone to price volatility, USDT maintains a stable value pegged to the US dollar.

As a crypto asset, investing in USDT can yield attractive returns when you put your tokens to work through activities such as lending or staking. In the realm of DeFi, USDT is highly sought-after, with platforms offering lucrative returns for liquidity in Tether.

The widespread usage of USDT is reflected in its market cap, placing it among the top 10 cryptocurrencies. As long as the demand for Tether remains high within cryptocurrency exchanges, this stablecoin can maintain its value and provide enticing rewards for investors who put it to work.

There are several ways to profit from investing in USDT. One option is to deposit USDT on platforms like BYDFi, which offer attractive returns. By providing liquidity to the platform, you can earn interest on your deposit.

Stake USDT on BYDFi

With BYDFi Earn, you can deposit Tether for a flexible period and receive attractive annual percentage rates (APRs). At the end of the selected tenure, you will get back your original deposit amount of USDT along with the accumulated interest.

Lend Liquidity in USDT

Another option is to use the Crypto Lending feature on BYDFi. You can lend your USDT to BYDFi for periods of seven, 14, or 28 days. The APRs vary based on the amount of USDT you lend and the chosen lending period.

Trade USDT Against Other Crypto Assets

Additionally, you can make money by trading USDT against other cryptocurrencies. By conducting technical, fundamental, and market sentiment analysis, you can execute trades using USDT.

Sell Tether to buy various cryptocurrencies supported on your preferred platform. Buying at a low price and selling when the price rises can increase your crypto capital.