Tether (USDT): Meaning and Uses for Tethering Crypto Explained

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Definition of 'Tether (USDT): Meaning and Uses for Tethering Crypto Explained'

Tether (USDT) is a stablecoin, a type of cryptocurrency that is pegged to the value of a fiat currency, such as the US dollar. This means that one USDT is always worth $1. Tether is the most popular stablecoin, with a market capitalization of over $70 billion.

Tether is issued by a company called Tether Limited. The company claims that each USDT is backed by one US dollar held in reserve. However, there has been some controversy over whether Tether is actually fully backed by reserves. In 2019, the New York Attorney General's office accused Tether of misleading investors about its reserves.

Despite the controversy, Tether remains the most popular stablecoin. It is used by traders to avoid the volatility of other cryptocurrencies, and it is also used by businesses to accept payments in cryptocurrency.

There are a few different ways to use Tether. One way is to use it as a store of value. Tether is less volatile than other cryptocurrencies, so it can be used to protect against the risk of losing money.

Another way to use Tether is to trade it for other cryptocurrencies. Tether is often used as a "gateway" currency to enter the cryptocurrency market. Traders can buy Tether with fiat currency, and then use Tether to buy other cryptocurrencies.

Finally, Tether can be used to make payments. Some businesses accept Tether as payment for goods and services. This can be a convenient way to make payments in cryptocurrency, without having to worry about the volatility of other cryptocurrencies.

Tether is a controversial cryptocurrency, but it remains the most popular stablecoin. It is used by traders, investors, and businesses for a variety of purposes.

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