The cryptocurrency market offers everyone wide horizons for profit-making both in long-term and short-term periods. Among many names, Tether occupies a special place as it is not only a crypto but also a stablecoin. This means it can be used in trading and hedging strategies. Let’s consider what USDT is, its advantages in 2026, disadvantages, and features.
What is this currency
The creators of the asset are true pioneers in their field. If such opportunities did not exist before USDT (the ticker for trading), then with theappearance ofthis token, it became possibleto usean instrument based on areal global unit — theUS dollar and euro. Theorganization behind Tether operates legally worldwide, and thesafety and reliability ofits use areensured byprofessional auditing.
Tether is asuccessful symbiosis ofablockchain tool and afiat currency (not backed bymetals). To provide interested parties withtheopportunity topurchase it, blockchaintechnologies are used.
USDT is not theonly ticker. If euro isused as thebasis for calculations, the token is designated as EURT on the market. In the future, the use of other fiat currencies is considered. In such cases, the ticker is formed according to the following rule — a letter T is added at the end of the abbreviation.
As for the US dollar, the current total backing volume is approximately 450 million. Currently, the total trading volume on exchanges is about 500-1000 million — a huge amount even by the standards of many long-established financial instruments.
Basic functioning principles
The project was officially launched in 2015, with the main creator being Tether Limited. The coins are based on the principles of regular cryptocurrencies, combining centralized issuance limited by the resources of the issuing company. The name stablecoin is not accidental. The rate is controlled and constantly adjusted in accordance with the changes in the underlying currency to maintain the initial parity.
Technical features
The Tether cryptocurrency provides owners with full transparency of transactions, reliability, and transaction guarantees. All of this is possible thanks to blockchain technologies.
Another undeniable advantage is that exchanges to cash equivalents are possible at any convenient time. Initially, the token-to-dollar ratio is maintained at one-to-one, while the price in rubles is floating and depends on the current market ratio of dollar-ruble pairs.
For daily convenience, mobile and web applications have been developed. All transfers are available under conditions of anonymity, speed, and reliability. Currently, this token is used for trading on many major exchanges. As mentioned earlier, the currency can be used in speculative, investment, and hedging trading strategies. The short-term trading outlook does not have high volatility like other assets. At the same time, it can provide traders with greater predictability.
Classic plastic cards have also been developed and successfully used, allowing transactions in any trading organizations.
Tokens can be used on the following platforms:
- Cryptsy
- OpenLedger
- Omni Layer
- Coinsbank
Thanks to the last participant in this list, token owners gained the ability to transfer within the SEPA system. The wide application of this stablecoin allows traders to obtain narrow spreads when trading.
Currently, the minimum purchase amount is just 1 token or 1 dollar. The minimum fee is also limited to one cryptocurrency unit. No fees are charged for withdrawal.
Main advantages of tokens
Any such currency has its advantages and disadvantages. The same applies to this asset. The main pros of these tokens include:
- Short transfer times between user wallets, even compared to traditional bank transactions. As with other virtual assets, transfer speed is almost instantaneous.
- Transaction fees are charged only when replenishing the wallet, amounting to $1. All other wallet transfers are free.
- All transactions are protected by blockchain technologies.
- The platform operates for both buying and selling. In this case, it is necessary to transfer a proportional amount of currency and receive fiat assets credited to your account, adjusted for the commission amount. An important feature is that units USDT returned to the issuer are considered redeemed and lose their liquidity. Such operations are not accompanied by additional formal transactions on crypto exchanges, as with other assets. Therefore, this buyback method is the most profitable when exchanging tokens for fiat money, unlike traditional exchange actions.
- Any new issuance of the asset is accompanied by mandatory monetary backing, which helps maintain a constant parity of value. This ensures stability against volatility, allowing it to be considered a stable token (simply put, a cryptocurrency with a stable course over time). Currently, about 450 million dollars of backing are in circulation, along with an equivalent volume of crypto.
- Exchanges limited in the free circulation of the US dollar gained the opportunity to perform transactions involving this instrument, thus hedging (insuring) other transactions with a stable global currency.
- USDT easily integrates into existing infrastructure, and any owner of another cryptocurrency can use these tokens when necessary.
Disadvantages
Despite the many obvious advantages, some disadvantages of this family of tokens should also be considered.
- Positioned as an excellent hedging instrument, Tether sometimes demonstrates some volatility. Although it does not exceed 3%, these crypto units cannot be called a completely safe harbor.
- Despite the claimed anonymity, conducting settlements with fiat currency, including token purchases, requires a verified account.
- Individual mining is not available; issuance and sale are made only by the issuing company.
- On exchange platforms, the liquidity pool is not always sufficient, making it difficult to forecast price movements. In the same exchange offices, much higher volumes can be found.
- The issued token is not subject to mandatory buyback. This means that, in fact, the issuer can unilaterally set any rules in its own interests.
Where and how to buy
Buying a token is equivalent to its issuance. Accordingly, to issue USDT or EURT, it is necessary to transfer the corresponding amount of US dollars or euros to the issuer plus a fee.
You can purchase units not only by new issuance but also by owning already issued units in circulation. Listing all platforms accepting Tether is not possible within a short article because there are many such organizations.
Storing these units is possible in any wallets supporting Omni Layer technology. Another reliable option is the web interface of Tether.io.
Conclusion
The Tether cryptocurrency is convenient for use in exchange or investment purposes, and it is suitable even for beginners in exchange trading. Its tight linkage to the most stable global currencies makes this token stable, reliable, and a convenient tool for a wide range of applications.
