What does Tether do?

Tether (USDT) is a stablecoin pegged to the U.S. dollar and has the following functions: Stable value storage: Maintaining a 1:1 fixed exchange rate against the U.S. dollar, providing a stable means of storing value. Medium of Exchange: Used for transactions between cryptocurrency exchanges, simplifying transactions and eliminating exchange gains and losses. Cross-border remittance: Provides fast, low-cost global remittance methods. Cryptocurrency lending: As collateral, we provide cryptocurrency and fiat currency lending services to individuals and institutions. Risk Hedging: Hedging the risks posed by cryptocurrency market fluctuations and protecting investors from plunges.

The role of Tether

Tether (USDT) is a stablecoin pegged to the US dollar. In the cryptocurrency market has a wide range of applications. Its role is as follows:

1. Stable Store of Value

Tether aims to maintain a fixed exchange rate of 1:1 with the US dollar, making it one of the world’s largest cryptocurrencies. A stable store of value. Holders can keep Tether without worrying about losses caused by violent market fluctuations.

2. Medium of Transaction

Due to its stability, Tether is also widely used as a medium of transaction between cryptocurrency exchanges. This simplifies transactions and eliminates foreign exchange gains and losses due to fluctuations in asset values.

3. Cross-border remittance

Tether makes it easy to send money around the world, which is faster and cheaper than using traditional remittance methods. Tether can transfer USD to any wallet that supports Tether without geographical restrictions.

4. Cryptocurrency Lending

As a stable asset, Tether is also used as collateral for cryptocurrency lending. Individuals or institutions holding Tether can use these Tether to borrow other cryptocurrencies or fiat currencies.

5. Risk Hedging

When the cryptocurrency market fluctuates, holding Tether can effectively hedge risks. Since Tether is pegged to the U.S. dollar, it protects investors from plunges in the cryptocurrency market.

Specific application scenarios:

• Traders use Tether to transfer funds between exchanges to avoid losses caused by fluctuations.
• Enterprises use Tether to settle cross-border transactions and reduce the risk of exchange rate fluctuations.
• Individuals use Tether to make cross-border remittances, saving costs and time.
• The lending platform accepts Tether as collateral to provide loans to users.
• Investors hold Tether to hedge risks arising from cryptocurrency market fluctuations.

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