Cryptocurrency is a digital asset that is secured by cryptography, which makes it impossible to double-spend or counterfeit. These currencies are based on blockchain technology and are used as a medium of exchange. They are free of any third-party interference including banks, government authorities, or intermediaries.
All these advantages have made cryptocurrencies the latest craze with Bitcoin topping the charts ever since its launch in 2009. This increased interest led to the launch of more altcoins and tokens, all with their unique propositions and features. Two of the most prominent of these currencies are Ethereum and Tether. Both these are often compared with each other on different parameters.
So, if these two currencies have gotten your interest also, here’s everything you need to know about them.
What is Ethereum (ETH)?
Ethereum is a decentralized blockchain-based platform that supports smart contracts and decentralized applications. It was launched in 2015 by Vitalik Buterin to explore and expand the full potential of blockchain technology. Ether (ETH) is the native cryptocurrency of the Ethereum network that powers the entire network. It is used as a form of payment by the network participants for executing their chosen operations on the Ethereum network.
While Ether is a cryptocurrency in the broad sense, it is more apt to call it the ‘fuel’ of the Ethereum network. Its market capitalization stands at almost $360 billion, making it the second-largest cryptocurrency in the world, next only to Bitcoin. If you want to diversify your portfolio to include Ethereum, know the ETH to INR rates.
What are the use cases of Ether?
Ethereum is an ideal platform for developing and deploying applications and products that need to run on a decentralized open network. Here are some of its most important use cases:
- It allows for decentralized finance (Defi) applications. These include borrowings without collateral, sending money anywhere in the world, and offering access to financial goods and services to everyone.
- It enables data verification more transparently. It can also prevent digital data theft and secure people’s financial information.
- Ethereum’s smart contracts will make it possible for anyone to exchange anything absolutely risk-free.
- With Ethereum being accepted by major companies around the world, it is increasingly being used as a means of payment. You can easily buy clothing, electronics, games, and much more. Read more about 5 strategies to start day trading crypto.
What is Tether (USDT)?
Though like Ethereum Tether is a cryptocurrency, in fact, it is the third-largest cryptocurrency in the world by market value, it is very different from not just Ethereum but all the other virtual currencies.
Tether is what is referred to as a stable coin. A stable coin is one that is tied to a real-world asset such as the US Dollar. This is done to maintain a stable value of the coin and prevent volatile fluctuations in its prices like that of other cryptocurrencies. If you wish to invest in Tether, it is essential to know the Tether to INR rates.
What are the use cases of Tether?
Being a stable coin, Tether is used as a bridge between the stability of fiat currencies and the transparency, speed, and independence of virtual currencies. Here are some of the most important use cases of Tether:
- It is used to transfer funds in either cryptocurrency or fiat currency through an exchange platform.
- Tether facilitates easier and faster cross-border transactions. It helps circumvent currency conversion fees and minimizes delays and risks.
- It can help the unbanked access financial services without them having to rely on any intermediaries.
- Tether allows people to make international remittances without having to pay high costs such as forex and service fees, wire costs, and other fees.
With these given advantages and use cases of Ethereum and Tether, the decision to invest lies solely with you. To make a sound investment, you need to match it with your objectives and risk appetite. What also helps is educating yourself about these currencies on reliable platforms such as Coiswitch.