Want to buy some tether (USDT) cryptocurrency? Well, this article guides you.
Blockchain is the technology that enables the existence of cryptocurrency. This technology has been around since the creation of Bitcoin in 2009.
Blockchain is an open ledger where transactions made in Bitcoin or another cryptocurrency are recorded chronologically and publicly.
Back in July 2014, Brock Pierce, Craig Sellars, and Reeve Collins founded tether usdt under the name of “Realcoin” to enable the usage of fiat currency digitally.
In this article, we will walk you through the complete guide about tether i.e. tether meaning, how it works, different uses for it, the way to stake and buy tether USDT… etc.
What is Tether?
Tether is a blockchain-enabled platform that allows you to use fiat currency digitally by tethering to the cryptocurrency blockchain.
It aims to disrupt the financial system by imparting money with some modern features that aren’t found in many conventional systems.
Tether lets customers transact on a blockchain with traditional currencies, without the inherent volatility or complexity of a digital currency.
With Tether, you can use the currency of your choice- whether it’s USD, euro… etc- to make transactions across borders.
This will open up a world of opportunities to new markets and will democratize cross-border transactions in new ways.
How does Tether work?
Tether coin is a stablecoin — meaning that it is pegged to something real like a stock or commodity to ensure stability.
Stablecoins are pegged at a fixed rate to real-life currencies like the dollar or the euro; Tether is an example. They’re also pegged to commodities, such as metals.
Tether claims that it has a 1:1 balance with the US Dollar, meaning one USDT token is worth one dollar.
So when someone deposits $100 in a tether wallet, an equivalent number of USDT coins are mined (100 USDT in this case).
What is a Stablecoin?
A stablecoin, such as tether coin, is a type of cryptocurrency whose value is linked to another asset class like the US dollar or gold to prevent volatility and maintain its cost. These assets are normally stable, while cryptocurrency tends to be less predictable.
For example, Even though currencies like USD may change gradually over time, they don’t compare to the day-to-day fluctuation in values that cryptocurrencies face.
One day you could be looking at a major increase, and then right after you could see a sharp decrease.
A stablecoin typically has an asset or basket of assets behind it. This is to ensure the stability of the coin. The entity that issues a stablecoin might have a “reserve”- usually this means they save the tokens somewhere secure.
Tether usdt is one of the oldest stablecoins, with its first release dating back to 2014.
Uses for Tether
- One of the main reasons why investors buy tether crypto is to protect themselves from price volatility. Having the advantage of begging to real-life currencies makes tether usdt more stable and more valuable than other cryptocurrencies.
- The cryptocurrency market is facing huge fluctuations already and traders who want to protect their financial position are buying tether.
- Tether cryptocurrency can be sent anywhere, withdrawn, and converted into dollars or Euros easily.
Tether and the Future
Tether is the most recent cryptocurrency that has been introduced to the market. This cryptocurrency has been received by many as a savior of altcoins and they are predicting that tether will be the next Bitcoin.
The future of tether depends on what the company does with it. The company could either continue to create more tether tokens or start implementing new features into the tether blockchain.
How To Buy Tether USDT?
Tether is popular throughout the cryptocurrency world. It can be found on almost all exchanges and you can buy it with almost any other currency.
Comparing multiple exchanges by their deposit methods & cryptocurrencies they support will help find one that suits your needs. Here is what to do after choosing your preferred exchange:
- Sign up to this exchange and create an account by your email, strong password, and some basic info.
- After verifying your account, you have to deposit funds into it using the payment method you prefer.
- Move to the market section on the exchange and choose the tether pair you Want to buy, then enter the amount of USDT you need to buy.
- Review the transaction details then complete the transaction process.
- You can move your tether usdt to one of the tether wallets shown below, to make it more secure.
If you are Canadian, you can use Canadian dollars directly to buy USDT. Here are some places from which you can buy tether coin if you are from Canada:
- Netcoins Exchange.
- CoinSmart Cryptocurrency Exchange.
- Gate.io Cryptocurrency Exchange.
- NDAX Cryptocurrency Exchange.
- Binance Cryptocurrency Exchange.
Unfortunately, people from the US are encountering certain complications in buying Tether, but it’s still available via Kraken and Binance in some places.
The restrictions they face may change in the near future.
How To Stake Tether?
The steps of tether staking are the same as buying it. You just need to choose an exchange that enables this option for tether as it’s totally new.
Popular exchanges for staking Tether include Crypto.com, Nexo, BlockFi, Waves Exchange, etc.
USDT vs. USDC
USDT
USDT is one of the most popular stablecoins. Nowadays, USDT has about a $64.1 billion market cap, making it the third-largest by that metric among cryptocurrencies in general.
Tether USDT provides a level of stability in crypto markets so your financial portfolio is less impacted by fluctuations.
If you want to switch to other digital currencies, you can always switch back to USDT whenever you want without withdrawing any funds from the exchange
USDC
It’s the stablecoin that was launched by Coinbase and Circle in 2018. The USD Coin (USDC) is a token based on Ethereum’s blockchain that uses US dollars for backing to maintain a one-to-one exchange rate.
Nowadays, USDC has about a $27.5 billion market cap, making it the second-largest by that metric among stablecoins.
USDC and USDT tether are both famous stablecoins that investors use as a safe tool to avoid the fluctuation of the crypto market and both of them are backed by USD at a one-to-one ratio.
These 2 stablecoins were founded by 2 different companies resulting in slight differences between them; USD saving process, blockchain behind, and the supply of both.
Best Crypto Wallets for Tether
Tether wallets are used to store USDT securely. Here are the best crypto wallets that you can use for tether coin/token:
- MyEtherWallet
- OmniWallet
- Tether Wallet
- Coinomi
- Ledger Nano S
- Ledger Nano X
Is Tether Safe?
Sometimes the tether price deviates from 1$, especially in the past 2 years. Such a thing affects its reputation badly.
This deviation isn’t too huge, so it’s still a stablecoin for now.
Before you buy tether usdt, you should probably do some research so that you know whether it’s a good decision for your current situation.