Tether (USDT) is known as one of the stable coins. Each USDT coin is linked to and represented by 1 USD, so USDT rate is stable, it is always worth about 1 USD. Tethers are issued by Tether Limited, a company owned by Bitfinex, and more over than ⅔ of the token supply is backed by cash or commercial paper.
As a stablecoin, it does not suffer from sudden price fluctuations. When you transfer USDT to someone, you can always be sure its value won’t change. Still, USDT is not the same as USD, and they are not money or legal tender.
Tether is mostly based on the Ethereum blockchain. As a regular ERC20* token, it can be sent to any Ethereum address.
Is USDT secure?
Tether is built on top of the cryptographically protected open-source blockchain technologies. The blockchain can’t be altered or modified and is almost immune to hacking. It can be securely stored, sent and received across the blockchain and are redeemable for cash (USD) pursuant to Tether Limited’s terms of service.
Still, many doubt their security, as USDT supply and mintage are controlled by a single company, hence USDT isn’t decentralised, as most of the other cryptocurrencies.
Check out this article to choose the most convenient way to buy cryptocurrencies, including USDT.
NB: For USDT transfers, NearPay supports ERC-20 network only. All the funds sent via other networks (e.g. BEP-20, TRC20) will be lost forever.