Tether tokens, aka Stablecoins established in 2014, are digital assets that are pegged to fiat currencies. In other words, their value is set to other currencies (such as USD, EUR, MXN, & CNH) on a 1 to 1 basis, e.g., 1 USD₮ = 1 USD. In this way, when you opt for this digital asset, you’ll have the stability of fiat currencies in addition to the fast and seamless features of Blockchain technology. Think of it as an alternative to the traditional fiat currency with added benefits since it is used by exchanges, wallet apps, as well as decentralized finance (DeFi) as payment options. Furthermore, traders of all walks of life can use Tether (USD₮) in their trading activities across the Blockchain just like any other digital currency with no problems whatsoever.
Since Tether assets are pegged to real-world currencies and are completely supported by Tether’s reserves, their prices are pretty stable, hence the term Stablecoins. During the past few years, Tether tokens have become quite popular amongst market participants, and thereby, their market cap has well surpassed 100 billion USD, as of March of 2024.
What’s more, users of this unique digital asset can take advantage of it across different blockchains (such as Algorand, Avalanche, Celo, Cosmos, Ethereum, EOS, Liquid Network, Near, Polkadot, Solana, Tezos, Ton, and Tron) without having to worry about the usual lack of stability that other tokens are known for, depending on the transport protocol used.
Given the popularity of USDT among traders and investors of the markets, so many forex brokers are now accepting this payment method (especially USDT TRC20 and USDT ERC20) as a viable option for deposits and withdrawals. This is particularly beneficial for the clients since their deposits are instant and withdrawals processed pretty fast – either instantly or within a few hours depending on factors, such as brokers’ policies and the blockchains’ speed. In the section below, we have compiled a list of forex brokers that offer USDT payment to their registered clients:
We have already established how beneficial the use of Tether tokens can be due to the many features and benefits that come with this digital asset. The following is a list of key advantages that you can expect by using Tether as your digital asset of choice:
1. Stability and Lack of Complexity
Stability is key when choosing a digital asset and this is where Tether would not disappoint. Other cryptocurrencies would go up and down like wildfire at times, USD₮ however, remains stable in terms of their prices since it’s pegged to the US dollar. Rest assured by using Tether, worrying about the stability of your assets will not be an issue anymore.
2. Unparalleled, Fast, and Reliable Liquidity
Another important factor to consider while opting for a digital asset is its liquidity. Tether tokens are pretty much available on most crypto exchanges; this will facilitate the process of selling and buying these assets with a low-price slippage. So, compared to other digital currencies, tether will not add any unforeseen problems to your daily trading activities regarding its availability and liquidity.
3. Easily Convertible
Tether tokens are highly sought after since they are vibrant and not at all stagnant. Tether users can without any difficulties choose to convert them to any fiat currency of their choice, such as USD and EUR. In essence, this paves the way for all users from different crypto blockchains to interact, exchange, and convert assets with equal ease.
4. Decentralized Finance (DeFi)
Stablecoins play a pivotal role in the growth and establishment of Decentralized Finance (DeFi) since they are used as a medium of exchange and collateral in certain DeFi lending and NFT platforms as well as decentralized prediction markets. Additionally, using Tether on DeFi platforms for borrowing and liquidity provision will allow users to avoid risky and highly volatile assets while engaging in DeFi activities.
5. Quick Transactions
Tether tokens are well-known for their easy and fast transaction processes; however, the processing time will depend on other factors, such as the respective blockchain’s speed. With that in mind, platforms such as Tron or Binance Smart Chain will offer much quicker transactions compared to Ethereum which usually takes longer to process.
6. Low-Cost Transactions
Tether transactions are very cost-effective and budget-friendly compared to alternative asset options, such as fiat currencies and cross-border transfers. Due to their low-cost transaction fees, tethers make for a good option to consider for your international payments and transferal of funds.
