Okay, we’ll better talk about the latter just here now. If you already know everything and you just need to perform a swap, say, Tether (USDTTRC20) to Monero, you may do it at this link.
What Does USDT Stand for, and How Does It Work?
USDT meaning crypto is backed by assets worth one US dollar – that’s the core principle behind the *stablecoin* term as a whole.
Regarding the technical side, all Tether was initially issued on the Bitcoin blockchain via the Omni Layer protocol. However, it can now be issued on any supported blockchain – Ethereum, Tron, BSC, and so on.
Once issued, the coin functions like any other currency on its native chain.
Tether employs the proof-of-reserves model, ensuring reserves always meet or exceed the amount of USDT in circulation.
Another important thing to know is what supports the asset. Like, something like Bitcoin isn’t backed by fiat currency or precious metals, yet as we know, each USDT unit is pegged to one US dollar. And it’s not just an abstract *US dollar*, as it’s tied to the actual reserves held by Tether Limited, a Hong Kong-based company that serves as the issuer.
When people buy or sell USDT, the total supply of the cryptocurrency doesn’t change. There’s no new coin creation or destruction. And obviously, you can’t mine it either.
But what happens if an exchange runs short of USDT for purchases?
If that happens, Tether Limited is contacted directly. They get the money and mint the right number of coins. This also doesn’t affect the cryptocurrency’s exchange rate.
One might think this could lead to abuse of power, but it doesn’t. Actually, Tether’s operations are closely monitored by independent auditors who verify the legitimacy of every single coin issued.
Why Do Crypto Users Choose USDT?
USDT is a stable asset in a volatile market. A kind of a safe, peace and quiet island.
Basically, it is a dollar alternative, yet without regional or banking restrictions.
A truly universal thing: one can use it for cross-exchange transfers, investments, money transfers, and payments for goods or services. You can also buy and sell USDT on most major exchanges (like ByBit, OKX, and KuCoin), through exchangers, or even directly – via Telegram.
Yes, the messenger supports it officially.
Moreover, it’s got a solid exchange rate and you may use it on lots of different chains, which makes it super liquid and popular.
What USDT Is Usually Used For
There are many use cases. For instance, it can serve as a dollar alternative for transactions on cryptocurrency exchanges – thanks to its extremely stable value. Another common use is for investments or cross-border money transfers, especially to countries where traditional banking cooperation is limited.
Some organizations also offer USDT deposit accounts.
The appeal?
These can offer even higher interest rates than regular banks. Not to imply that the difference is ultimate, but a few percent is still a few percent.
Why Use Xgram for USDT Transactions?
Xgram offers the perfect blend of speed, security and efficiency. We did our best in combining the best of DEX and CEX. Like, you get full anonymity like a decentralized exchange, yet with the high liquidity of a centralized one. We’ll also makes sure your transactions are super quick, so you never have to wait for them to complete.
And that’s not all.
With Xgram, you may swap cryptos on any device – wherever you are. Our UI is really easy to use on both desktop and mobile. A nearly perfect choice for beginners and seasoned traders alike.
And yes, you can keep an eye on the best rates as they happen.
Is USDT Safe? Understanding All the Risks
Tether is built on secure, open-source blockchain technology.
Moreover, the blockchain itself is basically impossible to hack and allows currency to be stored, sent and received relatively safely. But the thing is, USDT isn’t as decentralized as it could be, as it’s controlled by a single entity. On top of that, it’s tricky to outgo collateralization since there’s no direct access to the company’s accounts.
And do remember that there’s always the risk of losing wallet or account data without recovery options. Sure do, it’s worth mentioning that this isn’t something that’s just limited to USDT, yet we still must outline it.
But there’s another risk to think about. One that has more to do with trading.
Tether is pegged to the dollar and has minimal volatility, so it’s essentially as stable as the $ itself.
But you can still lose money.
You can mislay them a few different ways, though. Like through exchange rate differences or by spending the stablecoin on unnecessary, overpriced, or illiquid purchases.
So, just remember to always be rational when you’re doing your transactions. And don’t forget – we’ve got the best courses to guide you at Xgram.io.
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