Close Cookie Preference Manager
Made by Flinch 77
Oops! Something went wrong while submitting the form.
When discussing crypto, we delve into a modern financial system built on blockchain technology, offering new methods for trading, investing, and asset management. Tether USDT, the largest stablecoin, stands at the heart of this system, known for its stability and widespread use. Archway.Finance leverages USDT to ensure secure, stable payments for freelancers and contractors. Learn about Tether’s history, technology, and its essential role in trading, payments, DeFi, and as a hedge against market volatility. Discover why USDT is a trusted choice for safeguarding assets and facilitating seamless global transactions.
When we talk about crypto, we are dealing with a whole new system of financial transactions processed on the latest blockchain technology. There are new ways to trade, invest and manage your assets. At the center of this new system is Tether USDT, the largest stablecoin, widely used as the safe and stable option for trading. Archway.Finance uses Tether to send funds to freelancers and contractors who use our platform. Here is why we specifically choose USDT for this purpose.
Tether was created in 2014 as a digital currency on the Bitcoin network, and by design, it should always be equal to one US Dollar, which is known as the value peg, making it the most reliable currency for blockchain operations. With the increasing trading volume, people soon started questioning whether this coin was sufficiently backed by real assets. In the following years Tether has continued to grow and prove its stability. In 2020 USDT became available on other networks, such as Ethereum and Tron, making it easier and cheaper to use. It continues to be a stablecoin of choice for many operations on the blockchain.
Tether uses smart contracts, which are lines of code, carrying the information about the terms of agreements made between holders of the token. By integrating these contracts into code, Tether offers transparency, security and efficiency in transactions. These are easy to verify and cannot be changed after the fact. Blockchain’s decentralized nature lends itself perfectly to high-security publicly available transaction records like smart contracts. And the automation of the process increases the transaction speed and lowers the fees compared to traditional banking.
Interoperability is also crucial for globally used stablecoins. It allows Tether to be seamlessly communicated between multiple blockchains, allowing a broader range of users to take advantage of its flexible payment process.
Tether's availability on multiple blockchains and stable price point makes it a perfect candidate for creating trading pairs with other cryptocurrencies, as well as fiat currencies. It can be used when trading between separate exchanges without worrying about any discrepancies in pricing.
Web3 businesses, as well as some of the more progressive traditional companies use Tether to make payments, allowing them to take advantage of beneficial features of cryptocurrencies with all the stability of fiat currency. Freelancers use Tether because it is easy to implement in global transactions, reaching clients across the globe and providing more opportunities to save money in places with unstable local currencies.
In the world of DeFi, where financial services are provided without traditional banks, Tether is used for lending, borrowing, and earning interest. Its stable value makes it a reliable choice for these activities.
When the cryptocurrency market is volatile, investors convert their holdings into Tether to maintain their value. This acts as a safeguard against market fluctuations.
Keeping your income in Tether USDT is a safe option. It is not designed to be able to decrease in value, outside of extreme circumstances, because every token issued by Tether is backed by the same value in real tangible assets. The use of blockchain security features makes every transaction more transparent and secure than traditional banking. While Tether has faced scrutiny and regulatory attention, it remains one of the most trusted and used stablecoins in the cryptocurrency community. Its stability and liquidity make it a reliable choice for anyone looking to safeguard their assets against market volatility.
Since its inception, Tether has been scrutinized by authorities on its claims that Tether owns sufficient cash equivalents for all the tokens it has distributed. If that is not the case, they won't be able to fulfill the demand in case of a bank run, and the value of a token will not be tied to USD anymore. While Tether has passed every audit and provided ample evidence of their liquidity, stablecoins are continuously monitored by various regulatory bodies to ensure that people's assets are protected.
Tether is not intended to go up in value, as it should always, by definition, be worth one US Dollar. This makes stablecoins different from tokens like Bitcoin and Ethereum. An increase of its market capitalization will only provide more security for existing assets. Its primary purpose is to provide stability and act as a safe haven from the volatility of other cryptocurrencies. Therefore, USDT should always be worth approximately one USD, and significant changes in its value are not expected.
USDT (Tether) and USDC (USD Coin) are both stablecoins, designed to maintain a stable value of one US Dollar, offering similar functionalities in the cryptocurrency market. However, there are a few distinctions between them:
Both stablecoins serve the purpose of providing stability and ease of transaction in the volatile crypto market. Users can choose between them based on their preferences and trust in the issuing entities, but both USDT and USDC offer reliable options for maintaining a stable digital dollar value.
While USDT is designed to maintain a stable value of one US Dollar, there are still some risks associated with holding it:
However, under normal circumstances, holding USDT is considered relatively safe due to its stable value and wide acceptance in the cryptocurrency market. Always ensure to keep your USDT in secure, reputable wallets or crypto exchanges to mitigate risks.
