You probably have heard about Tether or USDT, a type of cryptocurrency pursuing a steady valuation.
It’s commonly used by investors who want to move funds between cryptocurrency markets and the traditional financial system, even if they don’t have an international bank account.
USDT has many benefits, so now it is included as one of the stablecoins available to exchange at El Dorado.
If you still don’t know how this cryptocurrency works. Keep reading! Because we are sharing all the basics about USDT, including its history, features, and how to get it using your local currency.
What is USDT?
Tether dollar, better known as USDT is a stablecoin created in 2014. Its goal is to keep its tokens’ price stable by tying them to theU.S. dollar.
That means that most of the time, the USDT price is close to one U.S. dollar.
For example, at the moment of writing this article, one USDT has the price of 0.99 USD.
Besides, it is one of the stablecoins with the highest market capitalization.
With their prices tied to a stable asset such as a central bank-issued currency like the U.S. dollar, Tether promises to keep protected crypto holders from volatility.
Also, their tokens are well-suited for transactions and trades on and between blockchains.
Thanks to its features, this cryptocurrency has become the most popular choice to get access to dollars without the need for an international bank account.
Getting USDT has the same benefits as buying digital Dollars.
Undoubtedly, these tokens are a good option for those seeking to protect their money and save and start their journey on crypto investments.
Why is USDT special?
As we mentioned, the features of Tether tokens are similar to FIAT dollars, including blockchain and fewer restrictions.
Know the most important features here:
- It is based on an open-source blockchain, which means that transparency and scalability are guaranteed.
- Because it is backed by USD reserves its price is stable, protecting your investments from fluctuations or abrupt falls.
- It is a great token to save and get access to the crypto market without the risks of high volatility that other cryptocurrencies such as Bitcoin have.
How does it work?
Unlike other cryptocurrencies, Tether doesn’t have its blockchain.
In the beginning, their stablecoin was created to interact with the Omni Layer, a lateral chain on the Bitcoin blockchain.
Nowadays, users can transact with USDT on and across some of the bigger blockchain networks including Ethereum, Akgorand, EOS, Solana, and Tron.
At El Dorado, the Tether tokens available are connected with Tron.
But… Who controls the emission of Tether tokens?
Well, you must know that USDT is not mined and it is not decentralized. It is regulated by a central entity, the company Tether Limited, which was created in Hong Kong and has offices in Switzerland.
The company issues (mints) and destroys (burns) USDT tokens to adjust the supply of coins to user demand. Those actions guarantee that their stablecoin value is always 100% backed by U.S. dollars in its reserve to ensure the 1:1 exchange ratio.
That means that if everyone wants to convert USDT into fiat today, they can do it.
On the other hand, Tether publishes a quarterly attestation breaking down its reserves by asset classes on its website, and updates the total value of its assets every day.
How to exchange fiat money for USDT?
Everybody knows that it is necessary to go to an exchange house to trade traditional dollars for any other fiat currency.
But, where should you go when you need to sell or buy USDT using your local currency?
The answer is a click away!
You can exchange Tethers at the El Dorado marketplace, a platform where it is possible to buy and sell stablecoins using your local payment method, even if you use Bolivares, Pesos, or any other fiat currency.
Do you want to start buying and selling USDT? Create your account right now and enjoy all the benefits of a U.S. dollar digital account.