It is necessary for newcomers to know more something about anchoring currency

[dulcemanana]

I am an experienced trader. As everyone knows, digital currencies are divided into following categories.
（1）   BTC and ETH. Currently they are models of digital currency. We can see the various digital assets and BTC or ETH trading pairs on major exchanges, such as the LTC / BTC pair and the LTC / ETH pair. Everyone can finish exchange of digital currencies and BTC and ETH in digital asset trading platforms.
（2）   Trading platform currencies. Trading platform are issuing their trading platform currency. Huobi.pro has issued HT and Okex has issued OKB. Trading platforms also support exchange between digital asset and trading platform currency.
（3）   Anchoring currency or stable tokens, like USDT and VHKD.

Today I will put emphasis on introduction of USDT and VHKD.

USDT
USDT is Tether USD (USDT), which is based on the stable value currency USD, introduced by Tether Company, and 1USDT = US $ 1. Users can make 1: 1 exchange between USDT and USD at any time. Tether claims to comply with the 1: 1 reserve guarantee, that is, for every issue of 1 USDT tokens, its bank account will have a 1-dollar funding guarantee.

However, there is a big risk for USDT.  Its issuer, Tether, is entirely centralized. Issuance, acceptance, regulatory risk and operational risk are all concentrated in Tether company. The business of Tether issuing tokens is itself a regulatory risk.

Completely centralized, and lack of a convincing self-control system. On the other hand, Tether is greatly regulated by regulation. Most countries do not support the existence of stable tokens such as USDT. Therefore, USDT poses a great risk. Once Tether is shut down, the USDT on the market will be immediately devalued if they face acceptance risk.

VHKD
VHKD is a currency denominated in Hong Kong dollars based on the stable value of currency issued by VDAC. 1VHKD = HK $ 1. VDAC strictly follows the 1: 1 reserve requirement. Users can always check (reserve) public accounts.

VHKD security is high. It approves the issuance mechanism through the smart contract, cites the auditing of third-party accounting firms and eliminates the risk of random overruns. And VHKD circulation is also very good. You can use VHKD free to buy the desired items and it can be withdrawn.

However, compared to the USDT, VHKD appears late. Currently trading platforms support VHKD are less than ones for USDT.