Buy Tether (USDT)
The excitement around cryptocurrencies is gaining momentum. Everyone has their eyes set on these highly volatile and undiscovered assets. There are incredible rumours surrounding cryptocurrency, but no one wants to give up the chance to make money. So, to start earning from cryptocurrency, it is advisable to learn as much as possible about this asset and market.
Cryptocurrency is bought either with fiat money or with another cryptocurrency. What is fiat money? And how is it different from cryptocurrency?
What is Fiat Currency?
In simple terms, fiat currency is a legal tender, the value of which is set by and issued by the government, unsecured by a physical commodity or product.
The government's authority is vital in determining the value of fiat currency. Most countries use fiat currencies to purchase goods and services, invest, and save.
Fiat currency has replaced the gold standard and other commodity-based systems in determining legal tender value.
What is cryptocurrency?
Cryptocurrency refers to a digital form of currency. It is created and transmitted using cryptographic methods, primarily based on blockchain technology. "Coins" are initially issued electronically, literally by performing mathematical calculations. In simple terms, a cryptocurrency is an artificial payment system equated to real money with an official exchange rate.
On the 3rd of January, 2009, Satoshi Nakamoto (probably a group of people hiding behind this pseudonym) finalised the programming code for Bitcoin, the first cryptocurrency. The first block was generated on that day, and the first 50 bitcoins were mined. This is how the world learned about blockchain technology, which is now used far beyond just digital money.
Fiat currency vs cryptocurrencies
Fiat currency and cryptocurrency have similarities due to their lack of physical backing, but that's where the similarities stop. While governments and central banks control fiat money, cryptocurrencies are decentralised, mainly through a distributed digital ledger called Blockchain.
Another notable difference between the two currency systems is how money is generated. Bitcoin, like most cryptocurrencies, has a controlled and limited supply - unlike fiat money, which banks essentially create out of nothing, based on their judgement of a country's economic needs.
As a digital form of money, cryptocurrencies have no physical counterpart and no borders, making them less restrictive for transactions worldwide. In addition, transactions are irreversible, and the nature of cryptocurrencies makes them much more difficult to track than the fiat currency system.
It should be noted that the cryptocurrency market is much smaller and therefore more volatile than traditional markets. This is probably one of the reasons why cryptocurrencies are not yet universally accepted, but as cryptocurrencies grow and develop, volatility is likely to diminish.
What is Tether (USDT)?
Tether (USDT) is a stablecoin, a specific type of cryptocurrency that actively keeps its price stable through unique market mechanisms. It is used by investors who want to hedge against the inherent volatility of their cryptocurrency investments. In doing so, Tether retains its value and, just as importantly, its liquidity in the cryptocurrency market.
Tether refers to stablecoins with so-called 'fiat backing'. This means it is backed by fiat currency (such as the US dollar, Canadian dollar, Australian dollar or even Japanese yen). Tether was created to bridge the gap between fiat currencies and blockchain assets. It provides transparency, stability and low fees for its users.
Tether is pegged to the US dollar at a 1:1 ratio. However, Tether Ltd. makes no guarantees about the right to redeem or exchange Tether for USD, and USDT cannot be exchanged for USD directly through Tether.
Tether ranks third in terms of market capitalisation. This only reinforces the belief that many people are willing to buy USDT, which means this cryptocurrency has its advantages.
How does Tether (USDT) work?
Each Tether (USDT) token issued is backed by one dollar worth of assets. Initially, all Tether tokens were issued via the Omni Layer protocol on the bitcoin blockchain. Today, issuance can be set up on any blockchain supported by Tether. The issued token (one USDT) can be used just like any other currency or token in the blockchain where it was issued. Tether currently supports the Bitcoin, Ethereum, EOS, Tron, Algorand and OMG Network blockchains.
Tether uses the Proof of Reserves mechanism. This means that the reserves of this cryptocurrency will equal or exceed the number of Tether tokens in circulation at any time. This can be checked on the company's website.
What makes Tether (USDT) unique?
What is the role of Tether (USDT)? Why have so many rushed to buy Tether?
Users have widely accepted Tether (USDT). It has been in use for years and has a legitimacy that few other cryptocurrencies have achieved. Of course, Tether's legitimacy is often disputed. Still, the facts speak for themselves: it has been widely accepted by many liquidity providers and protocols in the blockchain ecosystem. It is actively used as a payment method and medium of exchange. Large reserves protect Tether from market risks, including large-scale crises. USDT also has the same advantages as other cryptocurrency tokens. It can be used for peer-to-peer trading and the operation of PoW or PoS protocols. This makes it a desirable hedging tool for traders and ordinary users alike.
USDT's role is to provide liquidity and hedge market volatility. This is because its exchange rate does not rise or depreciate, albeit theoretically. The value of Tether (USDT) is entirely dependent on Tether reserves. Tether reserves are maintained at 1: 1, Tether will be worth USDT.
That's why buying Tether is profitable in certain circumstances.
Where and how to buy USDT?
Analyse and buy USDT at the current price.
It only takes a few clicks to buy Tether in Somalia quickly and safely. USDT is a stablecoin pegged to the US dollar. This means that its current price should not change much. When you're ready, choose a reliable exchange through which you're prepared to buy Tether. One of the most well-known exchanges is Binance.
How is Tether (USDT) protected?
Currently, USDT tokens can be issued on several cryptocurrency networks: Bitcoin, Ethereum, EOS, Tron, Algorand and OMG Network. As smart contracts and tokens are hosted on these blockchain networks, basic security is provided by the same nodes and miners that secure these networks themselves using Proof-of-Work or Proof-of-Stake mechanisms. In addition, these platforms conduct regular checks to ensure that their code is up-to-date, secure and compliant with the current structure. In turn, the Tether team also ensures that USDT remains compatible with each respective network.
How to start investing in Tether (USDT) in Somalia?
If you consider how else to invest in Tether in Somalia, then staking might be right for you. You will now find out what it is.
In fact, cryptocurrencies equivalent to more than a billion USD are in the stake on the Kraken platform alone. At the same time, Binance, Huobi and other significant exchanges also have vast volumes of cryptocurrencies at stake. Meanwhile, the total assets staked on DeFi platforms stood at $21-23 billion as of January 2021. This is a credible indication of the demand for staking.
Staking is the process by which a user locks or holds their funds in a cryptocurrency wallet to maintain the activity of a proof-of-stake (PoS) blockchain system. This process is similar to crypto-mining because it helps the network reach consensus and provides rewards to the users who participate.
In staking, the right to confirm transactions depends on how many coins are "locked" inside the wallet. However, as with PoW platform mining, participants are rewarded for finding a new block or adding a transaction to the blockchain. In addition to having a reward system, PoS blockchain platforms are scalable and have high transaction rates.
Steaking pros and cons
Some of the benefits of cryptocurrency staking:
- Passive income - returns can range from attractive to unbelievable and provide inactive income corresponding to different risk appetites.
- Low entry threshold - staking is simple and can be done in a few simple clicks, especially on large exchanges that now offer staking services. Users do not need a huge amount of money to start staking, which is also energy efficient.
However, you may ask: Is cryptocurrency staking safe? Here are some of the risks associated with cryptocurrency staking:
- The possibility of hacking/cyberattacks on the protocol or exchange is the main reason why some crypto investors do hardware wallet stacking.
- The possibility of a coin's value falling, especially in volatile market conditions. When coins are locked up for the duration of the stacking period, you will not be able to liquidate your assets if the price drops.
- Validator nodes storing your tokens can be locked if they do not maintain 100% uptime when processing transactions.
The attractive returns above clearly explain why staking has become so popular among cryptocurrency holders, as it gives them additional income from the assets in their accounts. Stacking has firmly established its place in the cryptocurrency world thanks to examples of staggering returns on some of the protocols.
However, before taking the plunge into the world of cryptocurrency, we recommend that you familiarise yourself with its advantages and disadvantages. If you stay vigilant and continuously learn and read the news, you will succeed. Then, have a great time trading!