Digital tokens pegged to fiat currencies
Tether is a cryptocurrency used for making digital payments.
Tethers value is pegged to the US dollar, meaning that 1 tether always is the same value as 1 USD. To ensure that Tether is always the same value as the USD, Tether keeps one USD in its reserves for each Tether token in circulation.
Tether also supports Euros and Chinese Yuan.
Trade and money transfers
Tether can be used to quickly transfer money across borders, without needing expensive middlemen such as banks and financial institutions. By being pegged to the US dollar, the value of money transfers is ensured to remain stable during the transaction, mitigating the price volatility normally associated with crypto currency.
Store of value
Tether can be used as a store of value while the prices of other assets are deemed too volatile. By buying Tether, investors can peg their investments to the US dollars until the volatility of their other assets has decreased.
Pros and Cons
- Fast international transfer of value
- Relative low fees
- Stable price – pegged to US dollar
- Can be used as a store of value
- Rises and falls in value with the US dollar
- Not widely accepted as payment method
- Not fully anonymous transactions
Where to buy Tether
Tether can be bought and sold on many different websites. When choosing where to buy your Tether, you should always consider the security of the company. With more than 35 million users, Coinbase is a proven and trusted place to invest in cryptocurrencies.