Learning the friendly way

If you’re new to the world of investing, you've likely come across a myriad of unfamiliar terms and concepts that can leave you feeling overwhelmed. While it may sound complex, understanding what spread means is essential for navigating the investment landscape with confidence. 

In this article, we'll demystify the concept of spread and equip you with practical knowledge to make informed investment decisions. Empower yourself on your financial journey by staying informed and educated. Let's dive into the world of spreads in investing and build your financial understanding.

What is spread?

The spread definition refers to the difference between the bid and ask prices. Let’s first grasp these two concepts. When you're looking to buy a stock, the bid price refers to the highest price that a buyer is willing to pay for that particular security. 

On the other hand, the ask price represents the lowest price at which a seller is willing to sell the stock. The bid-ask spread is the difference between these two prices. 

Understanding the importance of spread in investing is crucial for informed decision-making. Bid-ask spread directly affects trading costs, with wider spreads leading to higher expenses. It also reflects market efficiency and liquidity, as narrower spreads indicate a more liquid market. 

By recognizing the significance of spread, investors can manage expenses, adapt to market conditions, and make informed choices aligned with their goals.

How to calculate the spread

Calculating the spread using bid and ask prices is a straightforward process. Here's a step-by-step explanation:

Identify the bid price

Look for the highest price that buyers are willing to pay for the security.

Identify the ask price

Locate the lowest price at which sellers are willing to sell the security.

Calculate the spread

Subtract the bid price from the ask price. The result is the spread.

For example, if the bid price is $10 and the ask price is $11, the spread would be $11 - $10 = $1. This means the spread for this particular security is $1.

The different types of spread

When it comes to investing, here are three common types of spreads:

Fixed spreads

Fixed spreads remain constant regardless of market conditions. This means the difference between the bid and ask prices remains consistent, providing investors with predictable transaction costs. 

Fixed spreads are commonly offered by market makers and are suitable for traders who prioritize stability and transparency in their trading expenses.

Variable spreads

Unlike fixed spreads, variable spreads fluctuate based on market conditions. During times of high volatility or low liquidity, variable spreads tend to widen, reflecting increased uncertainty. Conversely, in stable market conditions, variable spreads can narrow. 

Variable spreads are typically offered by brokers and can be advantageous when trading in more liquid markets or during periods of lower volatility.

Commission-based spreads

In addition to the bid-ask spread, some brokers charge a separate commission fee for each trade. This commission-based structure may provide traders with tighter spreads as the bid-ask spread is often reduced. However, it's important to consider the overall transaction costs, including both the spread and commission, when evaluating the affordability of such trading arrangements.

Each type of bid ask spread has its advantages and considerations. Fixed spreads offer stability, variable spreads adapt to market conditions, and commission-based spreads can provide tighter bid-ask spreads. It's crucial for investors to assess their trading style, market conditions, and cost preferences when choosing the most suitable spread type.

Understanding the differences between these spread types can help investors to select the most appropriate trading environment for their investment strategies.

Factors that affect the bid ask spread

The spread in investing is influenced by several factors that can vary from market to market and even within different securities. Understanding these factors is essential for assessing trading costs and making informed investment decisions. Here are some key factors that can impact the spread:

Market volatility

Spread tends to widen during periods of increased market volatility. Increased uncertainty and rapid price fluctuations lead to a wider gap between the bid and ask prices. This widening of the spread compensates for the additional risk market participants face during volatile market conditions.

Market liquidity

Liquidity refers to the ease with which an asset can be bought or sold without causing significant price movement. In highly liquid markets with a large number of buyers and sellers, spreads tend to be narrower. Conversely, in illiquid markets with limited trading activity, spreads widen as finding a counterparty for a trade becomes more challenging.

Broker fees 

Different brokers may charge varying fees or commissions for executing trades. These fees can directly impact the overall spread and transaction costs. Some brokers offer lower spreads but may compensate by charging higher commissions, while others may have wider spreads but lower or no commission fees. It's important to consider both the spread and broker fees when evaluating the total cost of trading.

Trading volume

The volume of trading activity in a security or market can influence the spread. Higher trading volume generally indicates greater liquidity and tighter spreads. Conversely, lower trading volume can result in wider spreads due to reduced market depth and fewer available buyers and sellers.

Instrument or security type

Different types of securities or financial instruments may have varying levels of liquidity and trading characteristics, leading to differences in spreads. For example, major currency pairs in the foreign exchange market typically have tighter spreads compared to less frequently traded currency pairs or exotic options.

The significance of spread in investing

Spread holds significant importance in the market as it influences multiple aspects of trading and investment. Here are three key points:

Impact on profitability 

The spread directly impacts trade profitability by representing the immediate cost that investors need to overcome, as wider spreads reduce potential profits due to higher entry costs and lower selling prices, making managing and minimizing spreads essential for optimizing profitability.

Spread and market efficiency

Spreads contribute to market efficiency by reflecting a fair and efficient marketplace, with narrow spreads indicating healthy competition, transparency, and price discovery that allows buyers and sellers to transact closer to the fair value of the underlying asset.

Spread and market liquidity

The relationship between spread and market liquidity is closely intertwined, as narrow spreads indicate high liquidity with a robust pool of buyers and sellers, resulting in greater trading activity, tighter bid-ask spreads, and lower transaction costs. 

In contrast, wider spreads are common in less liquid markets, making it more challenging to find trading counterparts and potentially increasing trading costs and impacting execution quality, emphasizing the significance of understanding the spread-liquidity relationship for investors.

Overall, the significance of spread lies in its impact on profitability, contribution to market efficiency, and reflection of market liquidity. By monitoring spreads, investors can optimize their trading strategies, and navigate the market landscape with greater efficiency and potential for favourable outcomes.

Understanding spread in different asset classes

For investors looking to diversify their portfolios, understanding spread across different asset classes can prove valuable.

Stock Markets

In stock trading, the spread represents the difference between the bid and ask prices of a stock. The spread is influenced by factors such as the stock's liquidity, trading volume, and market conditions. Highly liquid stocks with significant trading activity often have narrower spreads, ensuring better price efficiency. 

For example, a stock may have a bid price of $50 and an ask price of $50.10, resulting in a spread of $0.10. Investors need to consider the spread when executing trades to assess the impact on their potential profits.

Foreign Exchange (Forex)

Spreads play a vital role in Forex trading. In this market, the spread refers to the difference between the buying (bid) and selling (ask) prices of currency pairs. Forex brokers typically earn their profits from the spread. Currency spreads can vary based on factors like market liquidity, economic indicators, and geopolitical events. 

Major currency pairs, such as EUR/USD or GBP/USD, tend to have tighter spreads due to their high liquidity, while exotic currency pairs may have wider spreads.

Bonds

In bond investing, the spread refers to the yield difference between a specific bond and a benchmark bond with similar characteristics (e.g., maturity and credit quality). The bond spread reflects the additional compensation investors demand for taking on the credit risk associated with that particular bond. 

Widening spreads indicate higher perceived risk, while narrowing spreads suggest improved credit conditions. Understanding bond spreads helps investors assess the relative value and risk associated with different bond investments.

Commodities and derivatives

Spreads are also relevant in other asset classes like commodities and derivatives. In commodity markets, spreads can represent price differences between different delivery months or different quality grades of a commodity. 

In derivative markets, such as futures or options, the spread is the difference between prices for the same commodity or security at different delivery dates. These spreads are influenced by factors specific to each market, including supply-demand dynamics, storage costs, and market sentiment.

Cryptocurrencies

Cryptocurrency markets also involve spreads that impact trading activities. The spread in the cryptocurrency refers to the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a particular cryptocurrency. 

Spreads in cryptocurrency trading can vary widely due to factors like market's liquidity, trading volume, the underlying market, and the specific exchange platform being used. Understanding and monitoring cryptocurrency spreads is important for assessing trading costs and executing transactions effectively in this dynamic and evolving market.

How to navigate spread costs when investing

Navigating spread costs is essential for optimizing investment returns. Here are strategies to help investors manage spread costs effectively:

Choose the right broker

Look for brokers offering competitive spreads and low fees. Research and compare brokers to find the most favorable trading conditions that align with your investment goals. 

Strategically time trades 

Timing trades can play a significant role in minimizing spread impact. Monitor market conditions and aim to trade during periods of higher liquidity and lower volatility. Additionally, avoiding high-impact news events or volatile market hours may help minimize the widening of spreads.

Consider alternative investment options

Explore alternative investment options that have narrower spreads or lower transaction costs. For example, exchange-traded funds (ETFs) or index funds often have lower expense ratios and narrower spreads compared to actively managed mutual funds. 

Risk management techniques

Set stop-loss orders to limit potential losses and protect profits. Utilize limit orders to specify the maximum price you are willing to pay or the minimum price you are willing to accept, helping control the execution price within the spread range.

These practices help optimize investment returns by minimizing transaction expenses and maximizing the benefits of their trading strategies. Regularly reviewing and adjusting these strategies based on market conditions can further enhance the management of spread costs.

In conclusion

Understanding spread in investing is crucial for making informed decisions and optimizing investment returns. Spread impacts profitability, market efficiency, and market liquidity. Calculating and monitoring spreads across different asset classes provides valuable insights into trading costs and market dynamics. 

By choosing the right broker, timing trades strategically, considering alternative investments, and implementing risk management techniques, investors can navigate spread costs effectively. Staying informed, evaluating market conditions, and adapting strategies accordingly are essential for managing spread costs. 

Empower yourself on your financial journey by understanding spread and its significance in different asset classes. By applying the strategies outlined in this article, you can enhance your trading approach and strive for more successful investment outcomes. Remember, informed decision-making and continuous learning are key to navigating spread costs and achieving your financial goals.

Stocks are essentially shares in a company that the company sells to shareholders in order to raise money. Shareholders are then entitled to dividends if the company succeeds, and might also receive voting rights when the company makes big decisions (depending on the company).

What are stocks?

Stocks play an important role in the global economy, assisting both companies (in raising capital) and individuals (in potentially earning returns). Traders can buy and sell stocks through stock trades facilitated by various stock exchanges. The stock price is determined by supply and demand, largely influenced by the company's success and media representation.

These "units of ownership" are sold through exchanges, like Nasdaq or the London Stock Exchange, under the guidance of regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States. These regulatory bodies set specific regulations on how companies can distribute and manage their stocks.

What are the different types of stocks?

There are two types of stocks, common stocks and preferred stocks, as outlined below.

Common Stock

Shareholders of common stock typically have voting rights, where each shareholder has one vote per share. This might grant them access to attending annual general meetings and being able to vote on corporate issues like electing people to the board, stock splits, or general company strategy.

Preferred Stock

For investors more interested in stability and receiving regular payments rather than voting on corporate issues, preferred stocks are often the security of choice. Preferred stock are shares that provide dividends but without the voting rights. Like bonds, there are a number of features that make them attractive investments. For example, many companies include clauses allowing them to repurchase shares at an agreed-upon price.

Stocks vs bonds

Although both stocks and bonds signify an investment, they vary in how they operate. With bonds, you're essentially lending money to the government or a company and collecting interest as a return. While with stocks you're buying part-ownership of a company. Another key difference is that bondholders usually have more protection than stockholders do.

In contrast to stocks, bonds are not normally traded on an exchange, but rather over the counter (the investor has to deal straight with the issuing company, government, or other entity).

Stocks vs futures and options

Futures and Options contrast stocks in that they are derivatives; their value is reliant on other assets like commodities, shares, currencies, and so on. They are contracts established off the volatility of underlying assets instead of ownership of the asset itself.

Stocks vs cryptocurrencies

While stocks provide a unit of ownership in a company, cryptocurrencies are digital assets that operate on a network. Cryptocurrencies are decentralized, meaning that no one entity is in charge, while stocks are shares in companies that are heavily centralized and held accountable for their price movements. Both the stock price and the price of cryptocurrencies are determined through supply and demand.

Another key difference is that stocks are regulated while, at present, cryptocurrencies are not.

Where did stock trading originate?

The first recorded instance of stock-like instruments being used was by the Romans as a way to involve their citizens in public works. Businesses contracted by the state would sell an instrument similar to a share to raise money for different ventures. This method was called 'lease holding.'

The 1600s gave rise to the East India Company (EIC), which is considered by many the first joint-stock company in history. The EIC increased its notoriety by trading various commodities in the Indian Ocean region. Today, we see the limited liability company (LLC) as a watered-down version of the joint-stock company.

How does the stock market work?

The 'stock market’ is an umbrella term that refers to the various exchanges where stocks in public companies are bought, sold, and traded.

The stock market is composed of similar yet different investment opportunities that allow investors to buy and sell stocks, these are called "stock exchanges." The best-known exchanges in the United States are the New York Stock Exchange (NYSE), Nasdaq, Better Alternative Trading System (BATS), and the Chicago Board Options Exchange (CBOE).

Together, these organizations form what we call the U.S. stock market. Other financial instruments like commodities, bonds, derivatives, and currencies are also traded on the stock market.

An example: the New York Stock Exchange

The New York Stock Exchange (NYSE) is the largest equity exchange in the world, and it has a long and rich history. Established in 1792, it was originally known as the "Buttonwood Agreement" between 24 stockbrokers who gathered at 68 Wall Street to sign an agreement that called for the trading of securities in an organized manner.

Since then, the NYSE has become a global leader in financial markets, with more than 2,400 companies listed and nearly $26.2 trillion in market capitalization. The exchange has an average daily trade volume of $123 billion.

Investing in common stock or preferred stock on the NYSE can be done through a broker or online stock trading platform. When trading on the NYSE, investors have access to a wide range of products and services, including stocks, bonds, mutual funds and ETFs (exchange-traded funds).

Investors can also take advantage of the numerous benefits that come with trading on the NYSE, such as access to real-time information and the ability to buy and sell quickly. The trading platform is regulated by the Securities and Exchange Commission (SEC).

Terminology associated with the stock market

• Broker: A broker is someone who buys and sells assets on behalf of another person, charging a commission for their services.
• Stockholders equity: The value of a company's stock can be better understood by this metric, which is the company's assets remaining after all bills are covered (liabilities).
• Stock splits: Conducting a stock split is one way that companies make their stocks more accessible to investors. Although it won't change the market capitalization or value of shares, it will increase the number available.
• Short selling: If an investor wants to bet on a stock's price going down, they can take a "short" position. To do this, they must borrow the stock from either a broker or a financial institution.
• Blue-chip stocks: Companies that are large and have a lot of capital typically fall into the blue-chip category. They usually trade on famous stock exchanges, like the NYSE or Nasdaq.
• Pink sheet stocks: 'Penny' or 'pink-sheet' stocks are those that trade below the $5 threshold and are typically OTC (over the counter). These can be high risk.
• Buying on margin: Buying on margin is using borrowed money to buy stocks, bonds, or other investments in the hopes of making big returns and paying off the loan.
• Market order: When placing an order for a trade, the investor needs to pick from several types of orders. A market order is executed at whatever the next price is, which can be risky if there's a big gap between what buyers and sellers are offering.
• Limit order: A limit order is an order to buy or sell a security at a specified price, with a maximum amount decided on before executing the trade.
• Stop order: A stop order, also referred to as a stop-loss order, is an order placed with a broker to buy or sell once the stock reaches a predetermined price.

In conclusion: what is stock?

Shares, or stock, are units of fractional ownership in a company that investors buy to gain capital appreciation and tap into a company's earnings if the company's stock pay dividends. Companies, through listing their stock on an exchange, can raise capital to further develop the business.

Stock is traded on an exchange, and the stock prices are determined by supply and demand.

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Sitting among the 30 biggest cryptocurrencies by market cap, Stellar is focused on bridging the gap between the business of blockchain and the traditional financial institutions. The platform provides a means for users to send assets and money through the blockchain, utilising a decentralised network of authenticators.

Redefining the financial landscape, Steller presents a digital transformation on the traditional services users have become accustomed to. Merging innovation with a practical application, the network is able to help users around the world, as well as financial industries, achieve a more streamlined service. Let's explore what Stellar is.

What is Stellar (XLM)?

Before we dive into the "what", let's first stipulate that one stellar is known as a lumen and uses the ticker XLM. Stellar launched in July 2014 and soon afterwards changed its strategy to be more focused on integrating blockchain technology into financial institutions. 

The concept behind Stellar is to provide a space in which users can transfer everything from traditional crypto and fiat currencies to tokens representing new and existing assets, increasing their transaction performance by using lumens.

Similar to the Ripple XRP network, Stellar is designed to cater to both payment providers and financial institutions, building a bridge between the blockchain and traditional financial sector. Developing on the Ripple concept, Stellar has also positioned itself as an exchange as its ledger has an inbuilt order book that keeps track of all the assets on the network. 

Who Created Stellar?

The founders of Stellar are Jed McCaleb and Joyce Kim, both previously employees at Ripple. McCaleb, who founded and was acting CTO of Ripple, and lawyer Joyce Kim, decided to create Stellar after they left the Ripple team in 2013 following a disagreement on the direction that Ripple was taking. McCaleb is also credited with creating the first successful Bitcoin exchange, Mt Gox. 

McCaleb described Stellar's aim as giving people a means of moving their fiat into crypto and more seamlessly conducting international payments. The network provides cross border transactions with low transaction fees and fast executions. With leading technology and innovative problem solving, the network has made a healthy impression on both institutions and investors alike.

How Does Stellar Work?

Stellar is a hard fork off of the Ripple network with several similarities in design and functionality, however, the platform set itself apart by building in several key features. The platform is secured through the Stellar Consensus Protocol which revolves around these core business concepts: decentralised control, flexible trust, low latency, and asymptotic security.

The biggest upgrade launch came in 2015 when the platform replaced its consensus mechanism with a concept called federated Byzantine agreement. This required nodes to vote on transactions until quorums are reached. Anyone is able to join the consensus, and there are measures in place to inhibit bad actors operating with ill intent on the network.

The software behind the platform is called Stellar Core and can be altered to adhere to the needs of the operation using it. The nodes making up the network can be created to function as either Watchers, Archivers, Basic Validators or Full Validators. For example, watchers can only submit transactions while Full Validators can vote on which transactions are valid and maintain a ledger of all node activity.

Another element to the network is the Stellar Anchors. These gateways are responsible for accepting deposits of currencies and assets and issuing depictions of these on Stellar.

What Is XLM?

Known as lumens, XLM is the native cryptocurrency to the Stellar platform. XLM acts as an intermediary currency for transactions taking place on the network. With cost-effective experience priorities, every transaction on the Stellar network costs 0.00001 XLM, a fraction of a dollar (at the time of writing). 

When the platform launched in 2014, 100 billion lumens were minted, programmed to increase by 1% annually until the total supply reached 105 billion. Five years later the Stellar uses voted to end this process. 

That same year, in 2019, the Stellar Development Foundation (a non-profit organisation) reduced its share of XLM in order to regulate the Stellar economy. This brought the total supply down to 50 billion. At the time of writing, roughly 49% of this total supply is in circulation. 

How to get XLM? 

Looking to incorporate Stellar Lumens (XLM) into your crypto portfolio? Effortlessly buy, sell or store XLM using the Tap mobile app. Explore diverse crypto markets and securely store your digital assets in our integrated wallets. Manage your portfolio on-the-go and unlock the potential of blockchain and cryptocurrencies. Join Tap now for a seamless crypto experience with Stellar Lumens.

Tether (USDT) consistently ranks among the top cryptocurrencies by market cap and regularly posts the highest daily trading volume in the entire crypto market. It's become an essential tool for traders worldwide.

While critics point to crypto's volatility as a weakness, stablecoins like Tether offer a different value proposition: the speed and accessibility of digital currency with the stability of the US dollar.

What Is Tether (USDT)?

Tether (USDT) is a widely used stablecoin, a type of cryptocurrency designed to maintain a fixed value by being pegged to a fiat currency, in this case the United States dollar. Unlike Bitcoin, whose price fluctuates based on supply and market demand, USDT is meant to stay close to $1 USD, providing stability in otherwise volatile markets.

Originally launched in 2014 under the name Realcoin, Tether was rebranded and built to act as a bridge between fiat money and digital assets. It enables traders, exchanges, and users to move value quickly, reliably, and with less exposure to cryptocurrency volatility.

Because of its stability and liquidity, USDT is often used as a “parking spot” in crypto trading, when the market is unstable, investors might convert volatile tokens into USDT to preserve value without leaving the crypto ecosystem entirely.

As of 2025, Tether is consistently ranked among the top 3 cryptocurrencies by market capitalization, and its daily trading volume often surpasses that of other major tokens.

In this article, we’ll dig into how USDT works, why people use it, the risks and controversies, and how to buy and use it responsibly.

Who Created Tether?

As mentioned above Tether was initially called Realcoin when it was launched in 2014 and was created by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins and software developer, Craig Sellars. It later changed its name to USTether, eventually settling on USDT. 

All three co-founders have profound experience within the crypto industry, each co-founding and actively involved in several cryptocurrency and blockchain projects.

The business has also created a number of other stablecoins solving the volatility problem across numerous markets, notably a Euro-pegged Tether coin (EURT), a Chinese Yuan-pegged Tether coin (CNHT), and a gold-pegged Tether coin (XAUT).

How Does USDT Work?

Reserve Backing & Peg Mechanism

To maintain its peg (i.e. USDT = 1 USD), Tether claims each USDT in circulation is backed by reserves. These reserves include cash, cash equivalents, repos, commercial paper, U.S. Treasury bills, and other short-term assets.

In recent attestations, Tether reports that about 81.5% of its reserves are in cash and U.S. Treasuries, with smaller portions in other assets.

When demand for USDT increases, Tether issues (mints) new tokens; when demand falls, tokens can be destroyed (burned) to reduce supply. This dynamic supply adjustment helps keep the exchange rate close to 1 USD.

Blockchain Infrastructure & Multi-Chain Support

Tether does not have its own dedicated blockchain. Instead, USDT operates as a token on various blockchains, including Ethereum (ERC-20), TRON (TRC-20), Solana, Algorand, EOS, and more. This multi-chain deployment enhances accessibility and interoperability.

Transactions are handled by the underlying networks: you need to send USDT on the same chain type, or bridges/wrapping mechanisms if moving across chains. Mistakes sending USDT on mismatched chains can lead to permanent loss.

Minting, Burning & Peg Maintenance

Tether monitors supply vs demand. If too many redemptions occur, USDT supply contracts; if demand surges, new tokens are minted. The reserve assets are used to maintain liquidity for redemptions and guarantee that each USDT has backing.

To preserve the peg, Tether also relies on arbitrage: if USDT drifts slightly above $1, there’s an incentive to redeem or sell, and if it dips below, it encourages buyers. Combined with market forces and reserve backing, this helps anchor the price.

Why Do People Use USDT?

• Users often convert volatile crypto into USDT during turbulent markets to protect value without exiting the digital asset ecosystem.
• USDT is accepted in a vast array of exchanges and trading pairs, making it a preferred medium of exchange.
• Because it behaves like USD but lives on the blockchain, USDT can move quickly across borders without traditional banking friction.
• Many decentralized finance platforms use USDT as a base asset for lending, yield farming, and stable lending markets.
• In regions with unstable local currencies, USDT often provides a stable alternative for savings, payments, or transfers.

Is USDT Safe? Risks & Concerns

While USDT offers utility, it also attracts scrutiny and criticism.

Centralization & Counterparty Risk

Tether Limited acts as the central issuer. That means users must trust that the company actually holds sufficient reserves and will honor redemptions. This centralized model contrasts with fully decentralized cryptocurrencies.

Transparency & Reserve Audits

Tether publishes regular attestation reports, but has yet to provide a full independent audit by a Big Four firm in many periods.
In 2025, Tether announced it is in talks with a Big Four accounting firm to pursue a full audit.

Historical controversies include a fine by the New York Attorney General in 2021 over misrepresentation about reserve backing.

Regulatory & Legal Uncertainty

Stablecoins face evolving regulatory environments globally. Some jurisdictions may impose stricter rules, reserve requirements, or classification of USDT as a regulated instrument.

Reserve Composition & Liquidity Risk

Though cash and Treasury bills dominate reported reserves, some portion may be in less liquid assets. In times of mass redemptions, liquidity risk may strain backing.

Price Deviations & Peg Risk

While USDT is generally stable, in extreme market stress, the peg might deviate briefly. Arbitrage, reserve liquidity, and market confidence are key to restoring balance.

How to Buy, Sell & Use USDT

Buying USDT

You can acquire USDT on most major cryptocurrency exchanges (e.g. Binance, Coinbase, Kraken). Many platforms allow purchase via fiat currencies (bank transfer, card) or by trading other crypto for USDT.

In the Tap app, you can buy USDT and have it stored in your wallet, making it easier to manage alongside your other assets.

Storing USDT

Store USDT in wallets that support the relevant chain (ERC-20, TRC-20, etc.). Hardware wallets like Ledger or Trezor support ERC-20 USDT (via Ethereum).

Converting USDT to Fiat

On many exchanges, you can sell USDT for fiat (USD, GBP, EUR) and withdraw to your bank.

Using USDT for Payments or Transfers

Some platforms accept USDT as payment. You can also transfer USDT peer-to-peer across wallets quickly and globally, with network transaction fees (gas) depending on the chain used.

USDT Reserve Composition & Transparency

Tether provides quarterly transparency reports detailing reserve breakdowns, but falls short of full independent audits historically.

As of recent attestations, ~81.5% of reserves are held in cash & U.S. Treasuries, while smaller portions are in other assets.

Tether held over $127 billion in U.S. Treasuries as of Q2 2025.

Reserve composition evolves over time; Tether has reduced reliance on commercial paper and shifted toward safer instruments.

While attestations improve transparency, critics assert a full, external audit would bolster confidence.

USDT vs Other Stablecoins

While USDT remains dominant, several alternatives exist:

• USDC: Known for stricter auditing and regulatory compliance
• DAI: Decentralized, over-collateralized stablecoin
  
  

USDT held around 62–63% of the stablecoin market share as of 2025. It maintains dominance due to liquidity, widespread adoption, and support across exchanges and DeFi. However, users might opt for alternatives for perceived transparency or regulatory comfort.

Investment Considerations

USDT is not designed as a growth asset; its value is meant to remain stable. Its role is more of a utility token: liquidity provider, trading medium, and stability anchor.

That said, you can earn yield on USDT via lending platforms, DeFi protocols, or savings accounts, though returns may be modest and come with risk.

Consider that holding large amounts of USDT long-term yields little upside, and inflation or counterparty risk may erode value.

Always balance USDT exposure within a diversified strategy, rather than viewing it as an investment vehicle.

Conclusion

Tether (USDT) plays a critical role as the most widely used stablecoin in crypto, offering a digital dollar alternative that combines stability with blockchain utility. While its popularity and liquidity make it indispensable in trading and DeFi, it operates under risks tied to transparency, centralization, and regulatory shifts.

If using USDT, treat it as a tool for stability and liquidity, not speculative growth. Used wisely, USDT helps you move between crypto and fiat more fluidly, manage volatility, and access global financial systems with fewer intermediaries.

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The Graph is making the process of interacting with blockchains much simpler by streamlining the building of new apps and the process of tracking valuable data, powering the growth of DeFi and Web3 platforms. The platform allows developers to provide improved user experience across the board, as opposed to having to create custom back-end infrastructure for each application.

The Graph indexes blockchain data in a unique and decentralized way which allows for the seamless querying and retrieving of data that is easily accessible and can be adopted by many. The platform's contribution to the global DeFi and Web3 infrastructure will be felt in years to come.

What is The Graph?

The Graph is a unique decentralized protocol that utilizes DLT (decentralized ledger technology) and the powerful GraphQL programming language to enable blockchain data collection without relying on third parties. The cutting-edge technology makes it simpler than ever before to index, organize, and query blockchain data information with remarkable accuracy and speed.

The Graph provides indexing and querying services that are compatible with networks like Ethereum, IPFS and PAO, with more to come in the future. The infrastructure can then organize data through the hosted service and implement automated workflow processes through open APIs, called subgraphs in The Graph ecosystem.

This indexing protocol resolves the issue of querying data security, chain reorganization, and other related matters with the subgraphs.

The launch of The Graph mainnet marked a milestone in creating entirely decentralized applications compatible with an expansive network of service providers. With these open, public subgraphs, developers can now build thousands of dapps on the network, with hundreds already hosted by The Graph mainnet. This allows for secure blockchain data access making the world far more connected than ever before.

The Graph (GRT) successfully raised $12 million from a public token sale and an additional $7.5 million from a private round funded by Coinbase Ventures, Digital Currency Group, and Framework Ventures including Multicoin Capital's investment of $2.5 million.

How is The Graph network secured?

The Graph mainnet is powered by nodes, while indexers, curators, delegators, and consumers use GRT tokens to ensure the integrity of the data secured within the network. GRT is The Graph network's native cryptocurrency which helps to assign resources within its ecosystem. All network participants are required to stake GRT in order to perform their roles, and in return can earn fees from the network.

The Graph Foundation offers the network participants coordination and support while steering and growing the ecosystem. The foundation is financially and legally accountable to The Graph Council, which oversees governance decisions.

Who created The Graph platform?

Driven by his firsthand experience of how hard it is to create new dapps on Ethereum, Yaniv Tal joined forces with Brandon Ramirez and Jannis Pohlmann in 2018 to form The Graph team. The Graph aims were to design the world's first decentralized indexing and querying application that could make Web3 and dapp creation accessible to anyone. This vision included the ability to build immutable APIs with the GraphQP query language. 

The three co-founders previously launched a developer tools startup together sharing a common interest in optimizing API stacks. All with engineering backgrounds, Yaniv Tal acts as project lead, Brandon Ramirez is the research lead and Jannis Pohlmann the tech lead.

The Graph launched on December 17, 2020.

How does The Graph protocol work?

By leveraging the Graph Protocol, developers and users can open APIs to build subgraphs for a variety of applications. In April 2021 alone, The Graph’s hosted service managed 20 billion queries - further demonstrating its power in data indexing, querying data, and its collection of data.

The Graph node sustains the whole system, scanning through the blockchain database to organize and index data. The platform's structure is centered around delegators, indexes, curators, and consumers, who use GRT tokens to participate in the network. 

Indexers - Graph node operators

With staked GRT, indexers can provide querying and indexing services to the network, earning query fees and rewards for their efforts. They are also responsible for running node software providing a vital part of The Graph ecosystem that grants access to data stored on Ethereum or other supported networks at lightning speed. Indexers are the most technical positions within the ecosystem.

Curators - identity blockchain data sources

Curators are responsible for developing subgraphs (open APIs are called subgraphs on the network) and signaling to indexers which ones should be indexed by the network. They also identify the most reliable data sources using their knowledge of the blockchain ecosystem, consumers and apps.

To incentivize the quality of their data sourcing, curators are required to deposit GRT into a bonding curve on specific existing subgraphs, earning a portion of the query fees for the subgraphs they signal on. The earlier a curator signals on a subgraph the higher the share of query fees they earn, dependent on the amount of GRT deposited. 

Curators are semi-technical positions within the ecosystem as they require an understanding of open data. As an example, say a new DeFi subgraph appears and a curator thinks it looks promising. They can signal on the subgraph so that indexers recognize its potential and make it discoverable for dapp developers. In return, curators receive a portion of query fees for being among the first to spot it.

Delegators - securing the network

Delegators are non-technical contributors to the network and are responsible for securing the network without running a node. They select indexers based on performance metrics and delegate GRT to indexers via the Graph Explorer dapp, earning a portion of the query fees and indexing rewards in return. 

Consumers - end-users

Consumers are the end-users of The Graph and are the ones who query subgraphs and pay fees to indexers, curators, and delegators for their services. These query fees are paid through gateways or wallets that are built on top of the open-source contracts on the network. 

What is GRT on The Graph network?

The Graph (GRT) is an ERC-20 token and the native token to The Graph network. The coin is integral to the reward system created to benefit indexers, curators, and delegators, which incentives them to improve the market and network operations. 

Delegators can delegate their GRT holdings to Indexers, who use locked GRT to power the nodes on The Graph network. Curators receive a reward in the form of GRT for providing curation services and consumers pay using GRT to access indexing services. Additionally, unlocking dapps available through The Graph network as well as interoperable networks is done by using GRT tokens. 

Participants of the network earn money by receiving The Graph GRT tokens, which have a market value when traded on the cryptocurrency market.

10 billion GRT were created when the project launched, with an annual issuance rate of 3% for indexing rewards. The platform then burns the withdrawal tax that curators are charged as well as 1% of the total query fees. All issuance formalities are subject to future technical governance. At the time of writing, the current circulating supply of GRT was 6,9 billion. 

How can I buy The Graph (GRT) tokens?

It's now easier than ever to add GRT to your crypto portfolios with the convenient Tap app. The mobile app has recently introduced The Graph among the list of its supported currencies, enabling anyone to effortlessly and safely access this crypto market anytime. Get ready for a whole new level of trading experience.

GRT can be bought, sold or stored thought the wallets integrated into the platform make it easy for users to organize and manage their GRT tokens safely.

While this is an outline of the project we encourage all users to conduct their own research before tapping into any cryptocurrencies or assets in the global economy.

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The stock market is a collective term for stock exchanges around the world. On these exchanges buyers and sellers can trade shares in publicly traded companies, known as stock. Similar to an auction, buyers can name the highest price they're willing to pay, known as the "bid", and sellers can name the lowest price they're willing to accept, known as the "ask". The trade will typically execute somewhere between these two figures.

The stock market exists across the world with stock exchanges situated in New York and Hong Kong, connecting traders through a mutual set of guidelines. Learn more about the role of stockbrokers, portfolio managers, and investors as we take a deep dive into the entire stock market.
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What is the stock market?

The stock market can also be referred to as the equities market or share market. As mentioned above, the stock market encompases buyers and sellers of stocks of publically traded companies. Similar to a farmer's market, the stock market forms a base where buyers and sellers can exchange things. Unlike farmer's markets, however, stock markets are heavily regulated and more complex, with prices known to change quickly.
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The primary functions that the stock market serves

• The buying of stocks: Both retail investors and institutional investors can purchase shares of companies.
• The selling of stocks: every trade needs a buyer and seller.
• The issuance of stocks: A company raising money may do so by selling a portion of ownership via an initial public offering (IPO). If the company is already public, it can raise money through a secondary public offering. After the individual stocks are issued in either case, it can be bought by or sold to members of the general public.
• Trades are typically placed by stockbrokers on behalf of individual investors or portfolio managers.

The primary market is when companies list their shares, while the secondary market is where investors trade these stocks. The secondary market is essentially the stock exchange where stock trading takes place.

It's not just stocks that can be bought and sold on the stock market. Other types of securities, such as exchange-traded funds (ETFs) or REITs, are also traded on the stock market (with some discrepancies in how they're priced and traded).

Around the world, there are 60 major stock exchanges, each varying in size and trading volume. In the United States, for instance, there are 13 different exchanges that make up the stock market, the most popular ones being the New York Stock Exchange and Nasdaq.
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How does the stock market work?

The primary function of the stock market is to bring together buyers and sellers so they can trade stocks and other financial instruments. The price is set much like an auction would be.

Bid price

• Buyers determine the bid price. Stockbrokers can bid on the price they're willing to buy a stock for, and the highest price becomes known as the "Best Bid."

Ask price

• Sellers determine the ask price. When an owner of the stock or their stockbroker wants to sell, they place what's called an ask, which is the price that they would like to sell a stock for. The lowest prices become known as the "Best Ask."

The negotiation between the Best Bid and Best Ask is called the “Spread.” The two sides agree to meet somewhere in the middle, and the person who executes the trade gets paid by taking the difference.

As you follow a stock, you’ll notice the share price moves. The stock's price is always changing depending on how many people are buying or selling it and the number of trades that it goes through. As economic, political, and news stories specific to a company affect the movement of markets in general, that company's stock prices can change too as a result. This is known as stock market volatility.
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Is trading on stock exchanges risky?

As with any investment pursuit, trading the stock market for both short-term and long-term periods carries a level of risk. Being prepared by knowing that stocks can increase or decrease dramatically at a moment's notice will allow you to prepare for such events in your trading strategy.

In some cases, stock prices can decrease to zero, losing all their value and resulting in a total loss of capital for the investor. While this is an extreme case, making the necessary precautions in one's trading strategy will go a long way.
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Is the stock market and stock exchange regulated?

Yes, as the stock market handles trillions of dollars, government organizations around the world have been called in to regulate these markets. In the U.S. for example the SEC (US Securities and Exchange Commission) has been granted the authority by Congress to regulate the stock market because they handle such a large amount of money. Other countries have similar organizations that regulate and enforce different laws.

Regulators are responsible for:

• Safeguarding the investments of the general public
• Promoting a sense of equality and fairness
• Keeping markets running smoothly
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Who are the main players in the stock market?

Below are the main players contributing to how the stock market works:

• Retail investors
• Buy or sell individual stocks through a brokerage account. When you place an order, it’s sent to exchanges where the trades are executed.
• Stockbrokers
• “Registered representatives” who have completed professional training and passed a licensing exam and are allowed to buy and sell securities on behalf of investors. Stockbrokers work for brokerages, which can either make their money through markups/markdowns or commissions on trades (known as principals or agents respectively). Fees are often charged by the brokerage to customers that use them to place orders and execute stock trades.
• Portfolio managers
• Portfolio managers are stockbrokers on a grander scale as they buy and sell stocks through large orders as they manage larger stock portfolios. These might include mutual funds, retirement funds, and pension funds, which contain a bundle of securities (stocks, bonds, etc) that are handled by the portfolio manager.
• Investment bankers
• Help companies list their shares publicly on exchanges.
  

Who makes up the stock market ecosystem?

To better understand how the stock market works you will need to understand the varying components that make up the primary market. Investors buying and selling stock make up the biggest component of the stock market, however, there are plenty of middlemen acting between those buyers and sellers earning money by providing services to them. Below are some examples:

• The stock exchanges charge a small transaction fee and listing fee to the companies that offer their shares on the exchange.
• Agents are the middlemen connecting the buyers with sellers. For connecting each side of the transaction they take a commission.
• Principals are broker-dealer firms that manage a portfolio of shares they're willing to sell. Broker-dealers usually earn a profit by adding a markup to stocks they sell and charge investors less than the full value when buying stock. For example, have you ever noticed how much more car dealerships will sell cars for versus what they offered to pay you for your old one? Brokerages do something similar with stocks.
• Retail investors are people who invest for themselves, and not as part of their job, are retail investors. These individuals manage their own stocks (or other assets) through personal accounts with brokerages.
• Custodians. Brokerage firms use custodians to physically hold stocks, which is seen as less of a risk in terms of loss, theft, or damage. For doing so they charge a fee.
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What is the history of the stock market?

The original concept of the stock market is the opportunity for a company to divide its ownership, known as equity, and sell it to investors. This practice dates back hundreds of years to the 1600s where European explorers would raise money for their ventures by selling shares in the company.

Investors would then get a cut of the explorer's missions, whether it be bringing back foreign spices or animal hides. The Dutch East India Company was a pioneer in this movement, selling shares in exchange for future profits on Amsterdam's stock exchange.

A century later and the first modern stock exchange was launched in London. Due to a high amount of fraud and minimal information on the company available to the public, the London Stock Exchange was created in 1773 which provided a consistent and fair platform on which to trade stocks.

Across the pond in 1790 the first stock exchange was formed in Philidelphia, followed shortly after by the New York Stock Exchange. Fast forward to modern days and the NYSE now provides both digital trading and a physical trading floor on Wall Street, the latter of which is a National Historic Landmark.

Nasdaq (National Association of Securities Dealers Automated Quotations) launched in 1971 as the world's first electronic market. The electronic stock exchange is a popular option for tech companies looking to list their shares and a crosstown rival to the NYSE. From a trading perspective, where the shares are listed makes little to no difference to the investor.

In conclusion: what is the stock market?

The stock market is a collective term for stock exchanges around the world that facilitate the trade of stocks and other financial instruments.