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<h2>How Tether (USDT) Works</h2>
Tether (<a href="https://coinmarketcap.com/currencies/tether/">USDT</a>) is a digital currency pegged to the US dollar. Coins whose rate is being stabilized by pegging them to a <a href="https://notum.ai/glossary/fiat%2520money">fiat</a> currency are called <a href="https://notum.ai/glossary/stablecoin">stablecoins</a>. Such cryptocurrencies are the least volatile and risk-prone. <a href="https://notum.ai/buy/tether">USDT coin</a> was developed by Tether Limited with the goal of creating a stable digital alternative to fiat currencies. Thus, each unit of USDT is backed by a reserve in US dollars in banks, which guarantees its stability and reliability.
USDT aims to provide liquidity and aims to eliminate the need to exchange cryptocurrencies for fiat money to trade on crypto exchanges. Thus, this stablecoin gives traders the opportunity to quickly and conveniently convert their funds into a stable asset while maintaining value. Moreover, now <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> is the third most popular cryptocurrency in the world after Bitcoin (<a href="https://coinmarketcap.com/currencies/bitcoin/">BTC</a>) and Ethereum (<a href="https://coinmarketcap.com/currencies/ethereum/">ETH</a>).
Tether has gained widespread adoption and support in the cryptocurrency community and is currently being used on many exchanges around the world. Moreover, it is one of the most popular stablecoins and is actively used for trading, holding funds, and making fast transfers. Despite some controversies and concerns regarding its transparency and reserves, USDT remains one of the most popular stablecoins, offering liquidity and stability to crypto traders and investors.
<h2>Popular Crypto Assets</h2>
Our platform includes a wide range of popular crypto assets, such as Ethereum (<a href="https://notum.ai/assets/ethereum">ETH</a>), Tether (<a href="https://notum.ai/assets/tether">USDT</a>), USD Coin (<a href="https://notum.ai/assets/usd-coin">USDC</a>), Dai (<a href="https://notum.ai/assets/dai">DAI</a>), and many more. With <a href="https://notum.ai">Notum</a>, you can easily invest in cryptocurrencies and start your way of getting a crypto passive income.&nbsp;
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<h1>About Tether (USDT)</h1>
Tether (<a href="https://tether.to/">USDT</a>) is a popular cryptocurrency known as a <a href="https://notum.ai/glossary/stablecoin">stablecoin</a> that was introduced in 2014. It is designed to provide price stability by pegging its value to traditional <a href="https://notum.ai/glossary/fiat%20money">fiat money</a>, primarily the US Dollar, at a 1:1 ratio. This means that each <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> <a href="https://notum.ai/glossary/token">token</a> is backed by an equivalent amount of US Dollars held in reserve by the issuing company, <a href="https://tether.to/en/about-us/">Tether Limited</a>.
<a href="https://tether.to/">Tether</a> operates on such <a href="https://notum.ai/glossary/blockchain">blockchain</a> networks, as <a href="https://ethereum.org/en/">Ethereum</a>, <a href="https://tron.network/">Tron</a>, and others, allowing users to transact with a stable digital asset while avoiding the price volatility commonly associated with other cryptos like <a href="https://coinmarketcap.com/currencies/bitcoin/">Bitcoin</a> or <a href="https://coinmarketcap.com/currencies/ethereum/">Ethereum</a>. Its wide adoption in the cryptocurrency market makes it an important tool for traders and investors who seek a stable store of value or a convenient means of moving funds between exchanges. However, <a href="https://tether.to/">Tether</a> has faced some controversies and regulatory scrutiny over the years due to concerns regarding its actual fiat reserves and transparency, though the company claims to regularly undergo audits to verify the reserves. <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> has a total supply of 86.71B USDT. The market capitalization of USDT is currently around $83.82 billion.
<h2>USDT Use Cases</h2>
Tether (<a href="https://coinmarketcap.com/currencies/tether/">USDT</a>) serves several important use cases in the cryptocurrency ecosystem:
<ul>
<li>Price Stability. <a href="https://coinmarketcap.com/currencies/tether/">USDT'</a>s primary use case is to provide price stability within the volatile cryptocurrency market. Traders and investors can use <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> to move their funds in and out of positions without worrying about significant price fluctuations. It offers safety during market downturns, as its value is pegged to a traditional <a href="https://notum.ai/glossary/fiat%20money">fiat currency</a> like the US Dollar.</li>
<li>Trading Pair. <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> acts as a popular trading pair on most cryptocurrency exchanges. Many altcoins are primarily traded against <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> instead of <a href="https://notum.ai/glossary/fiat%20money">fiat money</a>. This enables traders to assess the value of various cryptocurrencies in a standardized and easily comparable manner, without needing to convert to and from fiat each time they want to make a trade.</li>
<li>Cross-Exchange Arbitrage. <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> facilitates arbitrage opportunities between different crypto exchanges. Traders can exploit price differences for the same asset listed on different exchanges by rapidly moving funds in the form of <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> between platforms, capitalizing on price discrepancies.</li>
<li>Quick and Low-Cost Transactions. <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> transactions can be faster and more cost-effective compared to traditional banking systems. Transferring <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> <a href="https://notum.ai/glossary/token">tokens</a> across <a href="https://notum.ai/glossary/blockchain">blockchain</a> networks, such as <a href="https://ethereum.org/en/">Ethereum</a> or <a href="https://tron.network/">Tron</a>, can often result in quicker settlement times and lower transaction fees compared to traditional fiat-based transactions.</li>
<li>Decentralized Finance. <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> is also utilized in various <a href="https://notum.ai/glossary/defi">DeFi</a> applications, enabling users to access lending, borrowing, and <a href="https://notum.ai/glossary/yield%20farming">yield farming</a> protocols. By using <a href="https://coinmarketcap.com/currencies/tether/">USDT</a>, <a href="https://notum.ai/glossary/defi">DeFi</a> users can participate in these platforms and earn rewards or access loans while avoiding exposure to volatile cryptocurrency prices.</li>
<li>Global Transactions. <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> provides an alternative for cross-border remittances and international transactions. Users can send <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> tokens across borders quickly and efficiently without relying on traditional banking systems, potentially reducing transaction costs, and easing the process of sending money globally.</li>
</ul>
<h2>What Can I Do With USDT on Notum Platform?</h2>
With <a href="https://notum.ai/">Notum</a>, investing becomes even easier and more affordable. You can choose among a huge number of cryptocurrencies, manage your assets without delays, and get the best rates. The platform offers you to buy, stake, and swap <a href="https://coinmarketcap.com/currencies/tether/">USDT</a> and thus get a fast stable income in 2023.
<ul>
<li>Buy USDT</li>
<li>Swap USDT</li>
<li>Stake USDT</li>
</ul>

Tether is a stablecoin that represents the U.S. dollar on the cryptomarket and the price of USDT correlates to the price of USD. It’s a second-layer cryptocurrency token built on the Ethereum's network which has all of its pros - decentralization, anonymity, privacy etc. It was created by  a Hong Kong-based company Tether.

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