Why is Tether a good option for buying digital currency?
With the passage of time and the expansion of the use of digital currencies, many people refuse to enter the blockchain world due to the extreme fluctuations of these cryptocurrencies. To solve this problem, stable currencies or stable coins were created. One of the most famous and widely used currencies to buy digital currency is Tether.
What is Tether?
Tether or USDT is a stable currency that was introduced in 2015 and has since become one of the mainstays of the crypto market. Many stablecoins came after Tether, but Tether is still the leader. Why?
What is a stable currency (Stablecoin)?
A stablecoin is a type of cryptocurrency that aims to reduce market volatility when using cryptocurrencies. These currencies are usually backed by fixed-value assets or an algorithm.
Cryptocurrencies like Bitcoin are known for their wild price swings. These fluctuations are normal because blockchain technology is still new and the cryptocurrency market is relatively small. While these swings might be exciting from a free market perspective, they can be a hassle for everyday use.
After the crazy volatility of 2017, the popularity of stablecoins shot up. When Bitcoin hit almost $20,000 and then dropped more than 50%, investors started looking for a more stable store of value. Platforms that offer Dirham to USDT exchanges became a refuge for those wanting to protect their investments from such wild price changes.
What is Tether and why is it more popular than other stable currencies?
Tether is the most popular and widely used stable currency in the world. About 80% of all crypto transactions in the world are done through Tether.
The most important feature of Tether is that it is protected from the fluctuations of the digital currency market. It is used as a tool to control price fluctuations in digital currency transactions. This digital currency takes advantage of the features of cryptocurrencies and, like common physical currencies, does not have many price fluctuations and has a relatively fixed price.
Strong financial support and easy conversion
USDT is pegged to the US dollar. By buying Tether, you can quickly trade between Bitcoin and USD through its holding company, without needing to receive USD.
The company says it has US dollar reserves for every Tether in the market. Its main purpose is to serve as a gateway between fiat currencies and cryptocurrencies. Users who want to trade quickly, but don’t want to use a centralized exchange, can exchange their fiat currency, like Dirham, for Tether tokens.
Tether is also an easy way for new users to get into altcoins. Most users cannot directly buy altcoins with fiat currency. Therefore, converting Dirham to USDT is the first step to buying altcoins.
Availability
Compared to other stablecoins, Tether is the most common and accessible. This issue became more evident in the crash of March 12, known as “Black Thursday.” On this day, despite the price of Bitcoin falling more than 40%, traders flocked to stablecoins to preserve their shares and buy digital currency to maintain stability.
Traders welcomed Tether the most because, in addition to being stable, it’s the easiest to access. Many people were exchanging Dirham to USDT to keep their investments safe during the crash. Tether is currently used in various blockchains such as Bitcoin’s Omni Layer, Ethereum, Tron, EOS, Algorand, Liquid, and Bitcoin Cash.
value retention
Tether tokens are issued through the Bitcoin blockchain using the Omni layer protocol. Looking at the Tether price statistics, it can be seen that it has been very successful in maintaining its value in the digital currency buying market at around $1.
This currency, with a market value of about 21 billion dollars, ranks fourth in the entire cryptocurrency market, and its daily exchange volume is estimated at about 49 billion dollars; Above all other stable currencies.
Financial transparency
One of the important advantages of Tether is its financial transparency. Most people avoid investing in the crypto world due to the lack of transparency. With the support of the US dollar, Tether has removed these doubts.
In addition, Tether Limited guarantees to control and manage the reserve of coins. The company shares the details of all trading coins publicly, which also increases its financial transparency.
Easy buying and selling
Due to the popularity of Tether and the huge volume of its transactions, buying and selling it in the digital currency market is very simple and accessible. By creating an easy user interface on the site and application, madvex Exchange has provided ease for users to buy digital currency and sell Tether.
Disadvantages of Tether
Despite all the advantages that Tether has, there are also some disadvantages. One of the biggest concerns is legal issues and financial transparency. Some critics believe that Tether is not transparent enough and may not have enough dollar reserves to support all Tether issued. If these allegations are true, Tether could quickly lose its value and cause major problems in the crypto market.
Tether and competitors
Despite Tether’s success, competition in the stablecoin market is fierce. Stable currencies like USDC, DAI and BUSD are increasing their market share. Each of these currencies has its own unique features and some of them offer more transparency than Tether.
USDC, for example, is backed by Circle and Coinbase and places a strong emphasis on transparency and regulatory compliance. DAI is also a decentralized stablecoin supported by smart contracts on the Ethereum network.
The future of Tether
Despite all the challenges and competition, Tether still maintains its position as a leader in the stable currency market. Tether remains one of the most important digital currencies in the world due to the volume of transactions and usage.
Buying and selling Tether in madvex exchange
madvex is one of the Iranian digital currency exchanges that allows users to buy and sell Tether (USDT). Tether is a stablecoin that has a fixed value of one US dollar. This makes Tether a popular option for cryptocurrency trading and store of value.
Advantages of buying and selling Tether in madvex exchange:
Security: madvex is a safe and reliable exchange in Dubai that uses multiple security measures to protect its users’ assets.
Low fees: madvex offers competitive fees for buying and selling Tether.
Speed: Tether transactions on madvex are done quickly and efficiently.
Ease of use: The madvex platform is user-friendly and easy to use
Conclusion
With all its advantages and disadvantages, Tether is one of the most important stable currencies in the crypto market. This currency is a suitable option for digital currency traders and investors with its value preservation, financial transparency and easy conversion to fiat currencies and other cryptocurrencies. By using the madvex exchange, you can easily buy and sell Tether and benefit from the unique features of this stable currency.
As one of the leading stable currencies, Tether has become one of the most important financial instruments in the crypto world. By combining the positive features of fiat currencies and cryptocurrencies, this digital currency has been able to find a special place among digital currency traders and investors. Considering that a large volume of cryptocurrency transactions are carried out through Tether, this stable currency plays a very important role in facilitating and increasing the liquidity of the digital currency market.
By creating an easy and reliable platform for buying and selling Tether, madvex Exchange allows its users to trade quickly and more confidently. By providing services such as 24-hour support, low fees and high transaction speed, this exchange has been able to attract users’ satisfaction and become one of the most popular digital currency exchanges in Iran.
Finally, considering the ever-increasing growth of the cryptocurrency market and the need for stable currencies to reduce market volatility, Tether will continue to be one of the best options for cryptocurrency traders and investors. Using the madvex exchange, you can easily buy and sell Tether and benefit from the benefits of this stable currency.
