Cryptocurrencies have the same application scope as fiat currencies: they can be used for buying goods and services, money transfers worldwide, investments, trading, etc. Moreover, crypto has a much wider scope of applications – metaverses, blockchain games, social networks, DeFi platforms, etc.
There are coins, altcoins, tokens, and other crypto assets. We will talk about stablecoins and their advantages over fiat in this article.
The BTC USDT crypto pair is among the most traded cryptocurrency market. Bitcoin is the most popular crypto asset and the market leader, and Tether is a stablecoin.
What does Stablecoin Mean?
Stablecoin is a fiat-pegged cryptocurrency. Tether is the most traded stablecoin. Every single UDST coin is backed by one dollar. The cryptocurrency price is not volatile like the whole cryptocurrency market, and it is not subject to fluctuations and trends. That is, one USDT is always around 1 dollar.
Is USDT better than USD? Let’s find it out:
- Fiat currency’s emission depends on governmental decisions and banks. Crypto assets are not subject to regulators and governments.
- Transactions in fiat currencies often take a lot of time. Transactions in crypto are lightning-fast.
- Banks charge high commissions on money transfers worldwide. Crypto assets are moving between wallets and crypto exchanges at low fees.
So we can say that USDT is an alternative to a dollar in the crypto landscape. Often, large companies use USDT for transfers around the world. The cryptocurrency price is stable, transactions are quick, and the fee is minimum.
There’s no point in cryptocurrency price prediction for USDT because its rate will always equal one dollar. That is why Tether is not an investment asset but rather a crypto coin that hedges traders’ risks and serves as a means of payment between businesses.
You can buy Tether USDT on the cryptocurrency exchange WhiteBIT for fiat money on your bank card. The platform enables fast transactions at low fees (0,10%).