12 Best Cryptocurrencies to Invest in According to Reddit

3) Tether (USDT)

Market capitalization as of August 29: $118.1 billion

Tether was launched in 2014 as a blockchain-enabled platform. It was designed to enable the use of fiat currencies in digital form. Tether focuses on disrupting the conventional financial system through a more modern approach to money. It has made headway by providing customers the ability to transact with traditional currencies throughout the blockchain, without the inherent volatility and complexity which are present in a digital currency. It is a digital dollar, powered by blockchain technology, a stablecoin that has been pegged 1:1 to the USD.

Tether tokens exist as digital tokens that are built on numerous leading blockchains, including Algorand, Avalanche, Bitcoin Cash’s Simple Ledger Protocol (SLP), Ethereum, EOS, Polygon, Tezos, Solana, Kava, and Statemine. Such transport protocols have open-source software that interfaces with blockchains to allow for the issuance and redemption of Tether tokens. Tether token is 100% supported by Tether’s reserves.

Its unique feature is the fact that the value is guaranteed by Tether to remain pegged to the US dollar. As per Tether, when new USDT tokens are issued, it allocates a similar amount of USD to its reserves. This makes sure that USDT is fully backed by cash and cash equivalents. In May 2022, Tether announced MXNT launch, which was the new stablecoin backed by the Mexican peso. As a result of this, it expanded into the Latin American market after earlier debuts of USDT, EURT, and CNHT stablecoins, pegged to the U.S. dollar, euro, and Chinese yuan, respectively.

Tether transactions are very easy and fast, and this acts as an advantage for crypto investors and traders. The transactions that involve this stablecoin could be completed in just a few minutes. Crypto traders and investors purchase Tether as there’s no fee involved for the exchange conversion.