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Is it correct to set the $TERM variable manually?

I set the $TERM variable adding the line XTerm*termName: xterm-256color to my .Xresources file. When I did it I didn't know what exactly that meant (I was following an online guide to change the look of xterm), but now I have read a little more and am concerned if what I did was wrong. Specifically I want to know there is something bad in setting the $TERM variable manually, and in case it is, how can I revert my mistake.

In case you need, I'm running Fedora 20 with xterm.