If you're trying to figure out how to redeem your USDT, please check the FAQ
Understanding representational currency
Representational currency is any kind of money that can be exchanged for a specified amount of something. Until 1971, the US dollar was backed by the gold standard, for example. In other words, you could go to a US treasury office and exchange your dollar bills for a set amount of gold.
A stablecoin is a type of representational currency.
What's a Stablecoin
Stablecoins are the latest type of cryptocurrency to enter the market. They're backed in a specified ratio by some other asset.
For example, USDT (Tether) is backed 1:1 by US dollars and equivalent assets. In other words, you can always redeem your USDT for US dollars by going to Tether's website.
Stablecoins exist to allow users to trade between various kinds of crypto without always needing to hold a wide range of tokens or convert back to their local currency. They're more easily moved on and between exchanges because they're 100% digital, and can be moved using a smart contract instead of an agreement between banks.
Why Tradecipher uses Tether
We use Tradecipher for two basic reasons
- We're not a bank
- They're the biggest stablecoin
We're not a bank
Taking custody of other people's money is something of a challenging legal issue - by using a stablecoin, we can hold your money in a USD equivalent without the need of a bank charter. We wanted to let users take their money out of volatile assets in the short term without the need of withdrawing their funds entirely.
They're the biggest stablecoin
Tether has a total of $2.5Billion in circulation, as such we know there'll be enough volume to cover all of our users needs, and it's easy to trade with.