What Is USDT or Tether?

USDT (Tether) is a blockchain-based cryptocurrency whose tokens in circulation are backed by an equivalent amount of U.S. dollars, making it a stablecoin with a price pegged to USD $1.00. Stablecoins track traditional fiat currencies, like the dollar, the euro, or the Japanese yen, which are held in a designated bank account.

Why USDT?

We have adopted the USDT as the main cryptocurrency of our game because it is a stable coin, in a very volatile and unstable crypto world. We also thought of the network fees, and using USDT will have minimal network fees for all our players.

Had we used Bitcoin for our poker, or Ethereum or one of the many other famous cryptocurrencies, we will be making our players pay very high fees for those cryptocurrencies’ networks, which makes no sense for just using them at our games. 

USDT is the most available and easy to covert to coin in the crypto world today. Not only that, but the winnings are also collected in USDT which makes them immune to any market fluctuations, keeping the players winnings at value all the time.

What Is Tether Used for?

Tether is useful for crypto investors because it offers a way to avoid the extreme volatility of other cryptocurrencies. Furthermore, having USDT (as opposed to the U.S. dollar) removes transaction costs and delays that impair trade execution within the crypto market. 

 

How Do I Buy USDT?

Tether tokens can be transacted on popular cryptocurrency exchanges that include Binanace, CoinSpot, BitFinex, and Kraken.

 

What Is the Point of the Tether Token?

Tether (USDT) offers a way for investors to avoid the extreme volatility of other cryptocurrencies. By moving value to USDT, a trader might reduce their risk of exposure to a sudden drop in the price of cryptocurrencies. It is also much quicker and cheaper to transfer BTC into Tether rather than the U.S. dollar.

 

Is Tether a Stablecoin?

Yes, Tether is the first and most well-known stablecoin in the crypto world. 

 

How Does Tether Stay at $1?

While Tether has dropped below $1 before (and risen above $1), the stablecoin is able to retain its value because it is pegged to a matching fiat currency fund and 100% backed by Tether’s reserves.

Key Takaways

  • Tether (USDT) is a stablecoin, a type of cryptocurrency which aims to keep cryptocurrency valuations stable.
  • Tether is used by crypto investors who want to avoid the extreme volatility of other cryptocurrencies while keeping value within the crypto market.
  • Tether tokens trade under the USDT symbol.