Tether (USDT) Is A Digital Currency Whose Value Is Equal To One US Dollar. This Digital Currency, Which Is Backed By The Dollar, Is Designed To Protect Investors Against The Extreme Fluctuations Of The Digital Currency Market. 

The main difference between Tether and dollars is that they are transferred digitally, quickly, and efficiently.

In this article, we answer these questions:

• What is Tether? What is Tether?
• Why is the price of Tether permanently fixed?
• How does Tether work?
• How to buy Tether in Iran?
• What are the best Tether wallets?
• Why is the price of Tether different from the dollar in Iran?

Tether logo

Tether or USDT is a digital currency backed by the US dollar; Therefore, the price of one unit of USDT is almost always equal to one US dollar.

A kind of tether table digital currency(Stablecoin). The price of stablecoins depends on the value of their underlying assets and will rise or fall with them.

Apart from Tether, many other stable digital currencies with dollar backing have been launched in the market. Still, USDT currently has the largest market, according to toCoinMarketCap data, with a market value of more than 66 billion dollars after Bitcoin and Ethereum; it has strongly relied on the third position of the digital currency market.

What is the use of Tether?

Tether has two primary uses:

• Surviving the extreme fluctuations of the digital currency market
• Easy transfer of money to exchanges and wallets in dollars

Suppose on bitcoin you bought it for $8,000. A little later, the price reaches $10,000. In this case, you will convert your bitcoins to Tether quickly and easily and save 10,000 USD units.

Then, the price of Bitcoin falls to $6,000; But your capital is still worth $10,000, and you can buy more bitcoins at lower prices.

Sending and receiving USDT is as simple and fast as sending an email. In addition, you can easily store this digital currency in digital wallets on your mobile phone or computer or in exchanges. These features have made this digital currency very popular among traders.

Now, this digital currency is on blockchains such as Bitcoin.Ethereum، You see, Solana, Paligan, Olench, Algorand, and many other blockchains are transferred. This shows that Tether is very easy to access and can be stored on various wallets, such as Ethereum, Tron, Solana, and Clench.

What company is behind Tether?

iFinex is the owner of the Tether organization and operator of Bitfinex digital currency exchange. New USDT units are first released and circulated on the Bitfinex exchange.

Tether was first released in 2014 under the name “Real coin,” and after a short time, its name was changed. In 2019, the company released another stable digital currency called Tether Gold, backed by gold.

How does Tether work, and why is its price permanently fixed?

As a rule, for every unit of USDT produced, one US dollar is held in bank reserves, which is the backing of this digital currency.

This means that if 4,000,000 units of USDT have been marketed, 4,000,000 dollars must be kept in the bank’s treasury so that its price will always be equal to one dollar.

There is doubt in the digital currency community about this issue, and some accuse this digital currency of not having enough support.

Suppose a company produces new USDT units on demand and in different periods and imports them to the Bitfinx exchange. Then traders and market makers take them to other businesses and wallets, and this kind of Tether circulates.

Tether ecosystem at a glance (Designer: Farshad Motkalami © Erzdigital)

Another critical point is that USDT transactions are decentralized and are carried out on large blockchains. Still, the distribution of its units is wholly centralized, and it cannot be called a decentralized digital currency.

By visiting block explorer websites likeUttaraskan, you can see the number of available USDT units, the status of transactions, and their addresses.

Buying Tether in Iran

Designer: Farshad Motkalami © Erzdigital

The best way to buy Tether is to visit digital currency exchange websites. Users living in Iran usually use one of the following two methods to buy this digital currency from an online exchange:

• Direct purchase from Iranian websites with Rial and bank card
• Convert Bitcoin or other digital currencies to Tether in foreign businesses such as Kocoin

By searching for the word “buy Tether” in Google, you will find Iranian websites offering this digital currency. After registering and authenticating on one of these websites, you can directly buy with your bank card.

Some investors and traders also use the second method, Which means converting Bitcoin or other digital currencies to USDT in international exchanges, which of course, has risks due to sanctions.

USDT wallets

USDT units are non-physical and digital; you need digital wallets to store them. As we said, this currency is one of the few digital currencies with good accessibility and is stored and transferred on dozens of wallets (software or hardware).

Partridge token is offered on many blockchains; to store them, it is enough to use the wallets of the host blockchain. For example, to hold USDT, you can use Ethereum, Tron, Solana, French, and other wallets that host Tether on the blockchain.

Due to the high fees of Ethereum, at the time of writing this article, most digital currency exchanges in Iran are selling Tethertrony; its transfer fee is lower.

Do not forget:

When withdrawing USDT from an exchange, pay attention to the wallet address and make sure you receive Tether at the correct address. For example, on a business that sells TetherTrony, you need to give the TetherTrony address (TRC-20) when withdrawing, not, say, an Ethereum address.

Trust Wallet is the most popular wallet for storing USDT, which supports most blockchains of this digital currency and has an easy user interface. See the list of the best Tether wallets in the table below:

name	type	download link
Trust Wallet (multi-chain, Ethereum, Tron, etc.)	Software/Mobile	Download
MyEtherWallet (Ethereum)	software/web	access
Metamsk wallet (Ethereum, Olench, etc.)	Software/browser add-on	Download
Exodus wallet (multi-chain)	Software/mobile and desktop	Download
Ledger wallet (multi-chain)	hardware	physical
Trezor wallet (multi-chain)	hardware	physical
Phantom Wallet (Solana)	Software/browser add-on	Download

Do not forget to make a backup copy of the digital currency wallet before using it. Wallets usually show the user a set of 12 English words for backup, which should be written in a safe place.

In case of deletion of a wallet or any other problem, user can recover their assets again. If you don’t back up your wallet, your funds will be lost forever if your wallet is deleted or your device is stolen or damaged.

The difference in the price of paper dollars and Tether in Iran

For several reasons, sometimes in Iran price, there is a slight difference in the dollar price:

Digital currency market fluctuations and price chat

Since paper dollars and Tether are traded on separate platforms and markets, increased demand can cause price changes compared to the free dollar when the volatility in the digital currency market grows.

For example, when in exchange bitcoin price suddenly drops, it is possible that by selling more Bitcoin and converting it to USDT, the demand for it will increase, and its price will increase compared to the free dollar. Such a situation creates a gap or gap between this digital currency and the paper dollar, which, of course, disappears after a while.

Extreme fluctuations of Rial and price gap

In periods when the value of the Rial experiences severe fluctuations, similar to what we said earlier, it happens; That is, the price of one of the currencies increases first, and a price gap is created until both markets reach equilibrium again.

Exchange fees and policies

Small exchanges that have lower trading volume may offer it at a higher price according to their policies and to compensate for liquidity.

Also, in exchanges where the exchange itself is the party to the account and is not an intermediary, the sale may sell this digital currency more expensively to compensate for losses or more profit.

In Iran, usually (but not always), the price of USDT is higher than paper dollars. For example, if the dollar price in the open market is 44,800 Tomans, each USDT unit is traded at 45,000 Tomans in online exchanges.

Answers to some frequently asked questions

What is Tether?

Tether (USDT) is a digital currency with a value of one US dollar.

Why is the price of Tether permanently fixed?

For every unit produced from this digital currency, one US dollar is kept in bank reserves, which is the backing of this digital currency.

What are the best wallets to store USDT?

Dozens of software and hardware wallets support this digital currency. The best free software wallets include TrustWallet and Metamask. Ledger and Trezor wallets are among the top two hardware wallets to store USDT.

What is the use of Tether?

It has two primary uses: surviving the extreme fluctuations of the digital currency market and efficiently transferring money to exchanges and wallets in dollars.

Why is the price of Tether different from the paper dollar?

Since the paper dollar and Tether are traded in different markets, when the fluctuations of Rial or digital currencies increase, the price of one increases and a price gap is created. Also, small exchanges may sell Tether higher to compensate for liquidity.