In this article, we will highlight Tether’s features and discuss the differences between the TRC20 and ERC20 USDT networks.
Tether (USDT) is a type of cryptocurrency known as a stablecoin. It was created to address the volatility issues found in other cryptocurrencies like Bitcoin and Ethereum. The value of stablecoins like Tether is typically pegged to a stable asset, often the US dollar, in order to maintain a consistent value. The idea is that 1 Tether can always be traded for $1, regardless of market conditions.
Tether’s value is designed to be equivalent to 1 US dollar. This stability is achieved by backing each Tether token with a corresponding amount of traditional fiat currency like USD held in reserves. Tether tokens are often used as a way for traders and investors to move funds quickly between different cryptocurrency exchanges without needing to convert to fiat currency, thus avoiding the potential price fluctuations that might occur during these transactions.
Tether Is a Stablecoin
Tether seeks to offer a secure digital asset with a consistent value, which is why USDC functions as a stablecoin tethered to the US dollar’s price. The objective is to ensure that Tether consistently retains an equivalent value to its peg.
Pegged Defined
Tying stablecoins to a conventional currency, usually supported by collateral reserves predominantly consisting of the linked currency, safeguards them from the price fluctuations experienced by more speculative cryptocurrencies such as Bitcoin.
How Is Tether Useful?
Tether facilitates the transfer of funds between cryptocurrency markets and the traditional financial system, reducing volatility by maintaining a direct correlation, on a one-to-one basis, with traditional currencies.
ERC20 vs TRC20
A lot of cryptocurrency traders view TRC20 as the superior variation. Both versions of USDT hold their own merits and offer distinct features. The ERC20 version of USDT offers greater versatility in terms of its sharing capabilities compared to TRC20 USDT. However, TRC20 has lower gas fees and is excellent for beginning traders.
Tether & Monex1
At Monex1, we are always interested in buying Tether from our clients. You can convert your Tether to Canadian or US dollars without any limits. For more information please call (604) 355-0574 or text on WhatsApp.
