If you have even beginning knowledge of USDT, then you have probably heard the word “Tether” or the acronym “USDT.” Do you know what it is? If not, then this is the guide for you.
In this blog, we will give you a basic introduction to Tether and its workings. And we will also tell you how to buy Tether in Pakistan.
What is Tether (USDT)?
The idea behind Tether is simple. It is a crypto currency that belongs to the stablecoin family. Stablecoins or stable cryptocurrencies are those cryptocurrencies that have their valuation pegged to a fiat currency.
In the case of Tether, it is pegged to the US Dollar in a valuation ratio of 1:1 parity. The value of Tether is therefore preserved and stabilized by the fiat reserves of the US dollar. Meaning the total reserves or Tether are equal to the total reserves of the US Dollar. In essence, it is basically the cryptocurrency version of the US Dollar, with buying other crypto coins using the USDT being one of its main uses.
Being pegged to the value of the US Dollar in a ratio of 1:1 parity means that it avoids the volatility and unpredictability that other cryptocurrencies can have.
History of Tether
When Bitcoin and Ethereum began gaining steam and cryptocurrencies started getting mainstream attention, in that era, J.R Willet, Brock Pierce, and Craig Sellars began working on the idea of Tether. This was in 2014, and they developed projects named Realcoin and Mastercoin based on the Omni Layer protocol. And then later combined it and renamed it into Tether (USDT)
Then later in 2017, it was evolved into what is known as its current form. Tether became a viable option for users to traverse the crypto world with. Today, Tether’s presence is boosted by people adopting it by a huge margin.
How Does Tether Work?
As mentioned, Tether works by using Omni Layer protocol technology on the blockchain. How it works is that the Omni Layer protocol allows it to adapt to the properties of whichever token on whichever blockchain that you want to purchase.
Can it Be Used to Trade and Invest?
Trade? Yes. Invest? Not really.
Let us explain. With regards to trading, it can be used to purchase other cryptocurrencies and begin trading from there.
But with regards to investing, it isn’t really the best cryptocurrency to invest in because its value is pegged to the value of the US Dollar. As such, there is little to no change in its valuation due to it being a stablecoin.
Stablecoins are inherently developed to stay pegged to a certain valuation and don’t really vary from that valuation. As such, there will be no rise or fall in their valuation that you can use to create a profit for yourself.
Tether vs. Bitcoin
Just like all cryptocurrencies, both Tether and Bitcoin have the same kind of presence on the blockchain, but there are some key differences between the two that you need to know about. Let’s take a look.
Tether originally belongs to the organization that developed it, which is known as Tether Limited. While nobody really knows who developed Bitcoin. And the cryptocurrency itself is completely decentralized and therefore not owned or regulated by anybody.
USDT(Tether) is pegged to the dollar and is a stable coin. Therefore, it has no volatility issues and maintains its flat value. In contrast, Bitcoin is not a stablecoin, and its value has varied massively historically speaking.
Bitcoin is a minable cryptocurrency and has people all around the world trying to mine a Bitcoin. Comparatively, Tether cannot be mined.
USDT is limited by the development and production company to which it belongs. On the other hand, Bitcoin is limited to a hard cap of 21 million coins due to its source code.
Where to buy Tether (USDT)?
The simplest and most efficient option for you to buy Tether is PKR2Dollar. We offer convenience and ease. All you need to do is contact us. You will not find a better Tether exchanger in Pakistan. We also offer the best security; this way, you will not have to worry about any transaction you are making.
We are the premier cryptocurrency exchange here. So, if you want to buy Bitcoin in Pakistan or even some other cryptocurrency, you can contact us, and we will get you started without any worries.