I’ve been on this on top of this Paxful game as a trader, trading P2P.
Paxful is the largest peer-to-peer (P2P) trading platform in the world, and it allows us to buy and sell bitcoin to each other directly, with its own escrow service.
Trading on Paxful can yield incredible gains if you know what you’re doing, and that’s also what I do; as part of my trading strategy in the P2P market.
Paxful has added Tether (USDT), to their listings. Meaning that now, we can trade altcoins (other cryptocurrencies), instead of only dealing in bitcoin BTC!
What is USDT (Tether)?
So you’ve heard of Bitcoin and Etherium maybe even some altcoins like – or Litecoin but have you heard of stable coins like USDT or also known as tether?… In this article, we’re gonna discuss stable coins – in particular tether, and why trading Tether (USDT) on Paxful, is so important.
Traditional Cryptocurrencies are digital currencies whose values are based on supply and demand, on a decentralized network.
Stable coins, while still considered a Cryptocurrency, however, are backed by fiat currencies like dollar, pound, euro, and yen.
The stable coin that we’re gonna discuss today is called tether also known as USDT (Tether).
USDT was first released by a company called Tether limited in October 2014. The concept of a stable coin, and Tether’s view on this, is that, every Tether coin is physically backed by one U.S. dollar.
Tether is actually built on the Bitcoin blockchain. So, every transaction that has ever been made can be found on that ledger.
Now, how is this possible you might ask?
Let’s look at the structure.
There are actually two ways to peg a currency to another currency;
- A Cryptocurrency peg, and
- An Algorithmic peg
As Cryptocurrencies become more and more adapted, that volatility will go away and they will stable out. Therefore, it allows people to hold on to their bitcoins instead of cashing out and transferring it into something more stable like USDT.
In the meantime however, this is a very good option for people wanting to day trade, while keeping their assets safe.
But unless the United States government actually adopt a stable coin as their own, I don’t see stable coins lasting 20 years. But definitely for the next five.
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