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What is Tether and how does it work

What is Tether and how does it work ?

If you’ve traded Coin, you’ve probably seen T?ther or USDT a few times or used it often. This article will introduce you to the basic concepts and ways of operating Tether.



Tether is the currency that has two token codes, USDT, and EURT in the blockchain. Tether released on Bitcoin’s blockchain supported by US dollars to facilitate money transfers ensures stability for Bitcoin.

What is Tether?

According to the statement from the founding group, USDT is considered the dollar in the pre-digital world. Investors can buy USDT from many sources then transfer to the exchanges to conduct transactions. Because it is anchored to the USD, changing from USDT to cash is much easier than changing from other digital currencies. This idea makes it more sustainable than most other volatile currencies in the market.


Tether was founded in 2015. At that time each person will pay 1 USD for 1 USDT. However, Paradise profile revealed Tether was established in 2014 and founded by the Bitfinex trading floor.
According to Coinmarketcap, the world now has 2.2 billion USD in circulation.

How does Tether work?

Step 1: The investors by USDT by cash
Step 2: Tether will create a similar USDT token. The tether or USDT that you buy is priced at 1 USD
Step 3: You can trade or exchange USDT
Step 4: If you don’t want to keep USDT, you can sell USDT for Tether to get cash or you can sell USDT to other investors
Step 5: If you sell USDT for Tether, Tether will pay you real money and eliminate the token

Advantages of Tether digital money

Help transactions easy and fast: You only need to exchange 1 USD real money for 1 USDT virtual money with the same value. As a result, the transaction is less complicated and reduces the risk if the price changes abnormally

Reduce transaction time: You can buy USDT directly, no need to go through a 3rd party. Therefore, trading time is significantly shorter.


Reduce transaction costs: If you trade through intermediaries, of course, the transaction costs will increase due to the payment to a third party.

Disadvantages of Tether digital money

Manipulated due to underground supervision from the leader of the Bifinex floor.

The risk of the amount of USD is not equal to the amount of USDT that the company has confirmed
Concern about the speculation of the Tether with the market

We hope that the above article has helped you have more useful information about Tether for yourself as well as have more knowledge to be able to decide the investment properly.

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