Apr 28, 2022
What is Tether, and how does it work?
Tether is a stable coin and also an altcoin that operates on the Ethereum network, among others. Every Tether coin represents a physical dollar in the real world. So for every Tether coin you see in circulation, there is a corresponding dollar being kept in a safe or something similar. This is why its price is usually stable. Stable coins follow traditional fiat currencies like the Dollar, the Euro, or the Japanese Yen.
Tether coins, also known as USDT, were developed by the crypto exchange BitFinex. In 2021, USDT was reported as the fifth-largest cryptocurrency by market capitalization.
A brief history of USDT
Tether was founded in 2014 by co-founders Brock Pierce, Reeve Collins, and Craig Sellars under the name Real coin. It was the earliest stable coin ever created.
The purpose of Tether is to resolve two major issues with cryptocurrencies, such as high volatility or unstable prices, and the difficulties in converting paper currencies to cryptocurrencies. To solve this problem, Tether was designed to be a cryptocurrency that was backed by the US dollar. In other words, 1 USDT was equivalent to 1 dollar i.e 1:1.
Why buy Tether?
If you’re a risk-averse trader or you just want to use a cryptocurrency with less volatility and more stability, then stable coins are for you. Tether is one of the most liquid and widely traded stable coins to date. You can easily convert a Tether coin for Naira or vice versa.
How to get Tether coins in Nigeria
If you want to exchange your fiat currency for Tether (USDT), you can create an account on ValorExchange. Once your account is set up, you can easily exchange your fiat currency for cryptocurrencies anytime and anywhere.
Final thoughts
If you liked this article, we’re glad to say we have much more to share with you. We’ve created a community on Telegram dedicated to giving you the best resources, tools and more to get you started right.
You’re never alone when you’re a part of the Valor Tribe, and we can’t wait to get you on the journey of getting more value for your cryptocurrencies.
