What is Tether? Introduction to stablecoin and digital currency USDT

Tether (USDT) is a digital currency whose value is always equal to one US dollar. In fact, the price of Tether is always one dollar. In this article, we will explain in simple language what Tether is and how it works, and then we will teach you how to buy Tether, store it on your wallet, and how to transfer this digital currency.

What is Tether?

Tether or USDT A backed digital currency US dollar is that its price is always equal to one dollar America is This digital currency is designed to protect investors against the extreme volatility of the digital currency market and make it easier to transfer and trade dollars.

The main difference between Tether and dollar It is that Tether is transferred digitally and very quickly and easily.

Tether is actually a type of stablecoin. The price of stablecoins depends on the value of their underlying assets and will rise or fall with them.

Apart from Tether, there are many other dollar-backed stablecoins in the market; But currently USDT has the largest market. At the time of writing, according to data from CoinMarketCap, Tether has a strong hold on the third place in the digital currency market, after Bitcoin and Ethereum, with a market value of more than 120 billion dollars.

What is the use of Tether?

Tether has two main uses:

• Surviving the extreme fluctuations of the digital currency market
• Easy transfer of money to exchanges and wallets in dollars

Let’s say you bought one bitcoin for $8,000. A little later, the price reaches $10,000. In this case, you will quickly and easily convert your bitcoins to Tether and save 10,000 USDT units.

Then, the price of Bitcoin falls to $6,000; But your capital is still worth $10,000 and you can buy more bitcoins at lower prices.

In addition, you can easily store this digital currency in digital wallets on your mobile phone or computer or wallets in exchanges. Unlike paper dollars, sending and receiving USDT is as simple and fast as sending an email. These features have made this digital currency very popular for traders.

Now this digital currency is transferred on networks such as Bitcoin, Ethereum, Tron, Thun, Solana, Polygon, Olench, Elgorand and several other blockchains. This shows that Tether is very easy to access and can be stored on a variety of wallets such as Ethereum, Tron, Solana, and Olench.

How does Tether work and why does it have a fixed price?

According to the rule, for each unit of USDT that is produced, one US dollar is stored in the Tether Foundation accounts, which acts as the backing of this digital currency.

That is, for example, if 4,000,000 units of USDT have been released to the market, 4,000,000 dollars must be stored in the bank’s treasury so that the price always remains equal to one dollar.

Needless to say, there is doubt among the digital currency community about Tether’s dollar support, and some accuse this digital currency of not having enough support; But so far, the fixed price trend of this digital currency has not been affected.

What company is behind Tether?

iFinex is the owner of Tether organization and operator of Bitfinex digital currency exchange. In fact, new USDT units are first released and circulated on the Bitfinex exchange.

This digital currency was first released in 2014 under the name “Realcoin” and after a short time its name was changed. In 2019, the company released another stable digital currency called Tether Gold, which is backed by gold.

Another important point is that USDT transactions are decentralized and are carried out on large blockchains; But the distribution of its units It is completely focused And it cannot be called a decentralized digital currency.

Ifinx company produces new USDT units on demand and in different time periods and imports them to the Bitfinx exchange, and then traders and market makers take them to other exchanges and wallets, and this kind of Tether circulates.

By visiting block explorer websites such as EtraScan, one can see the number of USDT units available and the status of transactions and its addresses.

Learning to buy Tether in Iran

To buy Tether, The best thing to do is to visit digital currency exchange websites is

Unlike paper dollars, which people go to exchange offices approved by the Central Bank in order to buy them, there is no need to go in person to buy Tether, and the whole process is done completely online.

Right now, if you search the word “buy Tether” in Google, you will come across dozens of Iranian sites from which you can buy Tether. Usually, the websites on the first page of Google are all reputable and may differ slightly only in terms of price, liquidity or support.

To buy Tether in Iran, the work steps are generally as follows:

1. Refer to an Iranian digital currency exchange website and register and authenticate there (the whole process is online and offline)

2. Rial deposit in the Iranian digital currency exchange with a bank card

3. Conversion of Rial to Tether in Iranian digital currency exchange

To read the complete tutorial on buying Tether, refer to this article: How to buy Tether

USDT wallets

USDT units are non-physical and digital; So, you need digital wallets to store them. As we said, this currency is one of the few digital currencies that has good accessibility and is stored and transferred on dozens of wallets (software or hardware).

In fact, Tether is a token that has been released on many blockchains, and to store it, you just need to use the wallets of the host blockchain. For example, to store USDT, you can use Ethereum, Tron, Solana, Ollench, and other wallets that host Tether on the blockchain.

Read more: tutorial on how to make a Tether wallet; What is the best USDT volt?

Due to the high fees of Ethereum, at the time of writing this article, most digital currency exchanges in Iran are selling Tethertrony; Because its transfer fee is lower.

Don’t forget:

when picking USDT From the exchange, note the wallet address and make sure you receive Tether on the correct address. For example, in an exchange that sells TetherTrony, you need to give the TetherTrony address (TRC-20) when withdrawing and not, say, the Ethereum address.

The most popular wallet available for storing USDT is Trust Wallet, which supports most blockchains of this digital currency and has an easy user interface. See the list of the best Tether wallets in the table below:

Do not forget to make a backup copy of the digital currency wallet before using it. Wallets usually show the user a set of 12 English words for backup, which should be written down in a safe place.

In case of deletion of wallet or any other problem, user can recover their assets again. If you don’t back up your wallet, your funds will be lost forever if your wallet is deleted or your device is stolen or damaged.

Tether transmission networks

Tether units are offered on different blockchain networks. This network diversity provides greater flexibility and accessibility for Tether users to enjoy the benefits of this stablecoin in a network that best suits their needs.

Each blockchain network can have different fees or vary the speed of transactions. The list of blockchain networks on which Tether is available:

• Ethereum
• Theron
• you
• Solana
• Polygan
• Binance Smart Chain
• Arbitrum
• Optimism
• Avalanche
• Celo
• Cosmos
• EOS
• Liquid Network
• near
• Polkadot
• Tezos
• Algorand

An important thing to pay attention to is choosing the right network when transferring Tether from a wallet or exchange. For example, if your Tether is on the Tron network, you must receive the Tron network address (TRC-20) when transferring. If you use an unrelated network address such as your own network address, your assets may be lost in the transaction or difficult to recover.

In the table below, you can see Tether transfer fees on the most popular blockchains of this digital currency (numbers are approximate and may go up and down when the network is busy or quiet):

The difference between Tether price and dollar price in Iran

For several reasons, sometimes in Iran the price of Tether differs slightly from the price of the dollar:

Digital currency market fluctuations and price chat

Since paper dollars and Tether are traded on separate platforms and markets, when the volatility in the digital currency market increases, increased demand can cause price changes compared to the free dollar.

For example, when the price of Bitcoin suddenly drops in exchanges, it may be that by selling more Bitcoin and converting it to USDT, the demand for it will increase and its price will increase compared to the free dollar. Such a situation creates a gap between this digital currency and the paper dollar, which of course disappears after a while.

Extreme fluctuations of Rial and price gap

In periods when the value of the rial experiences severe fluctuations, similar to what we said earlier, it happens; That is, the price of one of the currencies increases first and a price gap is created until both markets reach equilibrium again.

Exchange fees and policies

Small exchanges that have less trading volume may offer it at a higher price according to their policies and to compensate for liquidity.

Also, in exchanges where the exchange itself is the party to the account and is not an intermediary, the exchange may sell this digital currency more expensively to compensate for losses or more profit.

In Iran, usually (but not always) the price of USDT is higher than the price of paper dollars. For example, if the dollar price in the open market is 44,800 Tomans, each USDT unit is traded at 45,000 Tomans in online exchanges.

Answers to some frequently asked questions