When you first get into the cryptocurrency field, you will definitely hear the word "Tether (USDT)" right away. In the news, you will also hear the words "Tether scam", "USDT fraud, money laundering" and so on from time to time. , what exactly is this USDT? Is it a scam?
The "100u, 1000u" that everyone often hears is actually the abbreviation of 100 USDT and 1000 USDT, which is very common in the field of virtual currency.
This article will give you a complete introduction to what USDT (Tether) is, what the exchange rate is, whether there are any concerns about fraud, and how to buy it.
What is USDT (Tether)? Is it a scam?
What is USDT? Is it a scam?
USDT, whose Chinese name is Tether, is a cryptocurrency. Like Bitcoin and Ethereum that everyone often hears, it is a type of virtual currency.
However, the characteristic of USDT is that its exchange rate is almost tied to the US dollar at 1:1. This type of cryptocurrency is called a stable currency, and USDT is a type of stable currency.
In other words, 1 USDT = 1 US dollar.
So, USDT is not a scam! Its existence is neutral, it is a virtual currency, and its value is one U.S. dollar, so you are right to think of it as a "cryptocurrency version of U.S. dollars."
Why do we often hear about USDT scams?
As for why you often see reports like “USDT fraud”, “Tether fraud”, and “USDT money laundering” in the news?
This is because fraud groups like to use USDT as a medium. After all, 1 USDT = 1 US dollar, and it is very easy to cash out.
Therefore, USDT is not a scam, it’s just that fraud groups like to trade with USDT.
In addition, USDT is also the most common currency unit in formal cryptocurrency transactions, such as BTC/USDT, which means that one Bitcoin can be exchanged for several USDT.
Because everyone likes to use USDT for transactions, after fraud groups deceive USDT, it is easy to find someone to exchange it for RMB or US dollars. This is why USDT scams are so common.
How will the fraud group defraud USDT?
If you read the above carefully, you will know that the fraud itself has nothing to do with USDT. The fraud group just finds it more convenient to use USDT.
USDT is just a cryptocurrency, worth one US dollar.
The fraud group will use fake exchanges, fake dating scams, phishing web pages, SMS scams, etc. to trick you into buying USDT, and then ask you to transfer USDT to it, that's it.
How to buy USDT? Are they sold in physical stores?
Buy USDT through exchanges
Another method used by the fraud group is to ask you to buy "fake USDT".
The method is also very simple. Use a fake webpage to ask you to transfer 10,000 US dollars, and then it will give you 10,000 USDT.
However, all you receive is fake currency called USDT, or the fraud group does not send you anything at all.
This method is easy to crack. You just need to go to a "regular exchange" to buy USDT.
Things to note when buying USDT in a physical store
There are physical cryptocurrency stores, or OTC stores, in Hong Kong. (OTC means over-the-counter trading, which means not traded on an exchange)
Such physical stores often have customer service staff who will teach you how to buy USDT; however, there are also some fraudulent physical stores in the news, and novices may not have the ability to identify them. If you really want to buy USDT in a physical store, please be careful. Be careful.
Don't go looking for someone to buy USDT with cash. This is much more risky. There have been cases in the news where you were directly robbed.
To buy USDT, the risk is roughly:
Formal Cryptocurrency Exchange > Physical Store >> Personal
Does the exchange rate of USDT have to be one dollar?
USDT exchange rate against US dollar
The exchange rate of USDT is "theoretically" one US dollar, but it will fluctuate a little, sometimes like 0.99 US dollars.
Historically, USDT has also fallen, which is a "decoupling" situation, although it eventually returned to the price of one US dollar.
The reason why the exchange rate of USDT changes is because there is some bad news about virtual currencies from time to time, which may cause a large number of people to sell their coins and flee; or USDT has been questioned about insufficient reserves or messy issuers, which has caused everyone to panic Sell USDT.
But so far, USDT is still quite stable at around one dollar.
USDT to RMB exchange rate
Although 1 USDT is approximately equal to 1 US dollar, the exchange rate against the RMB will still fluctuate.
It all depends on how many people in China are eager to convert USDT into RMB, or how many people in China use RMB to buy USDT.
So even if 1 USDT = 1 USD, there is still a slight price difference in terms of the RMB exchange rate.
Whether you use RMB to buy USDT on an exchange or buy from an OTC store, you will feel that the USDT exchange rate is a little different from the real US dollar exchange rate.
Conclusion: Is USDT a Scam?
Finally, let me summarize for you the conclusion about USDT.
100 u is actually the abbreviation of 100 USDT.
USDT is called Tether in Chinese.
USDT is a stablecoin, meaning it is worth approximately one dollar.
USDT is a cryptocurrency. It is not a scam in itself. It is just that fraud groups like to use USDT as a medium because it is widely circulated and can be cashed out more easily.
Fraudulent groups will use various means to trick you into buying USDT and then transfer it to it, or trick you into buying fake USDT; this does not mean that USDT (Tether) itself is a scam, it is just a cryptocurrency.
To buy USDT, you must go through formal channels, such as Binance Exchange or MAX Exchange. You can also buy it in physical stores, but be careful not to find a fraudulent merchant.
The exchange rate of USDT will fluctuate slightly.
The above is an introduction to Tether (USDT) and an analysis of whether it is a scam or not. Cryptocurrency is a high-risk investment. Please be sure to invest within an acceptable range and do not blindly invest. #FutureofDeFi #DeFiChallenge