The Birth of Tether
Tether is a cryptocurrency that uses the Bitcoin blockchain for financial transactions and is tied to fiat currencies, in particular, the US dollar, euro, and Japanese yen. For each currency, there is a token identical to its index, but with the suffix “T”: USDT, EURT, JPYT. The company Tether Limited issues tokens, assuring that a real reserve in the accounts backs each of them – one million tokens in circulation are strictly equal to one million units of fiat currency in the company’s accounts.
The Tether cryptocurrency itself is built based on the open-source protocol Omni Layer, which interacts with the blockchain and ensures the issuance and redemption of cryptocurrency tokens based on Bitcoin. Users can transfer issued tokens, buy any other cryptocurrency for them, or store them in any Omni Layer-enabled wallet. It is worth noting that tokens are issued only in the amount equivalent to which was received on the company’s account. Accordingly, the token disappears from circulation in precisely the same way.
How Do Tether Transactions Work?
Tether uses an alternative to the Proof of Solvency method – proof of reservation, or Proof of Reserves. The process is common: the amount of tokens is checked on the Bitcoin blockchain using the tools available in the public domain, and bank accounts and periodic audits confirm the corresponding amount of dollar reserves. The company regularly publishes the number of funds on a separate website, and Taiwanese and American audit firms often carry out appropriate checks.
Tether Limited announced a parity between USD and USDT – one token should be equal in value to one dollar. This trend was observed until April 2017, but soon the USDT fell in price to the level of $ 0.91, and later rose to the level of $ 1.1. The course jumps continue to this day, and it has not been possible to achieve constant parity in price. One of the possible reasons may be fake binding to fiat currencies – many analysts claim that the equivalent does not support the amount of USDT released so far in USD.
It is not a secret that many people buy Tether with the aim to hold and sell it later when the price hits new highs. Binaryx offers all users to store their Tether on the platform by providing them with advanced security and other features.
Send/Transfer Tether via Binaryx
With Binaryx, all users can transfer or send Tether to other cryptocurrency owners. You can buy Tether here, and manage your transfers easily.
Margin Trading & Margin Funding
Binaryx allows up to 3.3x leverage trading by providing traders with access to the peer-to-peer funding market. Liquidity providers can earn interest by providing funding to traders wanting to trade with leverage. Funding is traded on an order book at various rates and periods.
Trade Tether on Binaryx & Enjoy Marketplace Features
Here on Binaryx, you have an outstanding opportunity to start trading Tether, regardless of your level of experience. You can find the best cryptocurrency traders and copy their trading performance. Binaryx offers users an extensive set of features, in which you are guaranteed to experience a secure trading activity. Find out how many opportunities are available for all cryptocurrency traders, and how you can become an expert in the crypto trading by following the experienced professionals and leaders.
Binaryx is the first marketplace of professional crypto-traders based on the most reliable cryptocurrency exchange platform. Start buying and selling Tether with the best crypto-traders, or by yourself.
- Marketplace. Binaryx provides the ability to search and work with the best cryptocurrency traders around the globe. By using unique algorithms, Binaryx offers low-risks opportunities so you can minimize the risks.
- Exchange. Our primary mission is to launch a robust platform for all crypto traders, regardless of their experience in trading. Binaryx provides the best-in-class user experience, security, and 24/7 support.
- Blog. In our blog, traders can learn how to trade Tether, how to deal with other cryptocurrencies, and what strategies they can use when the situation on the market is unstable.