USDT ERC20 - what is it?

USDT ERC-20 is a stablecoin that is pegged to the US dollar. The digital asset was developed on the Ethereum blockchain in accordance with the ERC-20 standard. Answering the question of what is USDT ERC20, it is worth mentioning the developer - Tether Limited. This company was founded by Brock Pierce and Reeve Collinson in 2014. In 2018, USDT tokens were issued according to the ERC-20 standard, based on the Ethereum blockchain. The digital asset gained popularity due to the fact that transactions with it are carried out quickly, since they do not require confirmation. You can exchange, buy or sell ERC-20 using the mason-ex.com service. This is a reliable crypto exchanger that works with a huge number of cryptocurrencies.

What is Tether

Tether is one of the most popular stablecoins on the crypto market. The asset is pegged to fiat currencies at a rate of 1 to 1. Or to gold, such as Tether Gold and Xaut. Many crypto enthusiasts prefer ERC-20 for the following reasons:

• Tether stablecoins are not very volatile and there is less risk when making transactions with them. This is due to the token being pegged to fiat.
• Transaction speed is fast.
• High liquidity ratio.
• The token can be used in different areas. For example, trading, betting, crowdfunding.

Another important detail, due to which ERC-20 is considered in demand. Tether ERC-20 is developed on the Ethereum network, which makes the coin more compatible with other platform assets.

Today, Tether ranks third in capitalization with a sum of 111,927,498,930 US dollars. At the same time, tokens do not have their own blockchain, they are developed on the network of existing ones. That is why many traders are confused about which token belongs to which blockchain. The following standards have been developed for sending to different networks:

1. OMNI - which is used when sending on the OMNI Layer network, it is also the first format of the USDT token.
2. ERC-20 - is used to make transactions on the Ethereum network.
3. TRC-20 (TRX) - for TRON.
4. BEP-2 - for the Binance ecosystem.
5. TIP-3 - for Everscale.
6. BEP-20 - for the Binance smart contract service.

It is important not to confuse the standards, since choosing the wrong network can cause you to lose funds.

USDT Popularity

The USDT rate is pegged to the dollar. It may differ, but not much. The stablecoin is the leader in capitalization and trading volume. The asset is often used for online payments. In terms of capitalization, the coin is second only to Bitcoin and Ethereum. And in terms of daily trading volume, USDT holds first place with a figure of $45,122,402,345. All information is current as of May 30, 2024.

The main goal of the developers when creating an asset is to reduce the volatility of cryptocurrencies. After all, Ethereum and Bitcoin can begin to change their rates sharply. Stablecoins are tied to real currencies, so they are well suited for storing savings during periods of strong volatility in the market.

How to withdraw to a card

ERC-20 can be used for online transactions, or you can simply withdraw to a bank card. You can find many exchangers, but it is faster and easier to do this on Mason-ex. This service is one of the leading crypto exchangers. Just follow the step-by-step instructions:

1. Select the USDT ERC-20 cryptocurrency.
2. Fill in the “Give” column. Pay attention to the minimum and maximum amounts.
3. Select the option to receive – card.
4. Enter the card number, email, telegram. 
5. Check the consent boxes.
6. Click the “Exchange now” button.

Keep in mind that the rate is updated on the service every 30 seconds. Now you know how to withdraw money from USDT to a card.

Advantages and disadvantages of the asset

Tether ERC-20 has its positive and negative sides, which we will consider below.
Advantages:

• rate stability;
• versatility;
• high liquidity ratio.

Disadvantages:

• no regulatory framework;
• management by a single issuer, which can have a negative impact on security.

In addition to constant disputes about the transparency of reserve provision, the pressure of the US SEC on the crypto market poses a serious threat. The commission may recognize USDT as an illegal security.

An important criterion for evaluating cryptocurrency is collateral. Almost 67% are US bills. But this is a part, the remaining 30% is distributed as follows:

• 12.66% - funds;
• 9.02% - loans;
• 10.83% - cash and deposits;
• 4.69% - corporate bonds, metals.

Tether listens to the crypto community and constantly checks reserves. Thus, 2 audits have already been carried out by BDO Italia.

Conclusion

ERC-20 is a stablecoin that is tied to the US dollar exchange rate. In this article, we explained how to withdraw USDT ERC20, and showed the pros and cons of this asset. The cryptocurrency can be used to buy other coins, send and receive payments, or invest for the long term. Due to its stability, fast transactions, and availability, ERC-20 is in demand among traders.