Tether is a blockchain platform that offers stable coins. Stable coins are blockchain-based assets that are linked to the price of government money (also known as fiat currencies).
Today, Tether supports four stable coins: the U.S. dollar (USDT), the Chinese Yuan (CNHT), and the Euro (EURT), as well as a stable coin backed by 1 oz. of gold (XAUT).
As of 2020, USDT remains the largest and most widely used stable coin.
Each USDT token is redeemable for a corresponding U.S. dollar held under custody by Tether. The total value of all USDT is said to be equal to the reserves held by Tether.
There has been some controversy surrounding Tether’s ability to back stable coin. In January 2018, the necessary audit to ensure that the real-world reserve is maintained never took place. Since then, worries about whether the company has enough reserves to back the coin have sprung up.
Once a USDT is newly minted and issued, it can be transferred, stored, and spent just like any other cryptocurrency. If you are trading with USDT (as opposed to the U.S. dollar), you do not have the transaction costs and delays that negatively affect your trade execution within the crypto market.
Stable coins are an emerging class of crypto assets that are finding use beyond the world of trading, including in sectors like traditional cross-border payments.
The first thing you need to know about how to buy USDT is where to buy USDT.
USDT can be bought on most crypto exchanges. You need to choose an exchange that operates within your jurisdiction and trades ether. Then you need to set up an account on the exchange platform. Make sure you do your homework and choose a reliable exchange platform. Not only will this help you to avoid scammers, but it will also reveal hidden fees and high commission rates.
After you have found the right crypto exchange, you need to set up an account. To buy Tether (USDT) on this exchange, follow all of the instructions on the exchange’s website. Click on "Buy Crypto," select "Tether" (USDT), and choose your payment method.
Next, you will need to get a crypto wallet. This is where your newly acquired crypto asset will be safely stored.
There are different types of wallets for you to consider, and each wallet can vary in terms of features, usability, and security. The first choice you have is choosing between a hardware and a software wallet.
A hardware wallet is an offline, physical device that stores the private key to your Tether (USDT). This type of wallet is one of the safest wallets available. It does require an initial investment – you need to buy the hardware. Most hardware wallets for sale will support not only USDT but other crypto assets as well.
A software wallet is generally free to use. It will store the private key to your Tether (USDT) on your device, whether that be a mobile phone, desktop, or laptop computer. A software wallet is considered less safe than a hardware wallet because it might be vulnerable to malware. Make sure to take the necessary precautions and only download official or highly recommended wallets.
Now that you know how to buy Tether (USDT), you may want to know more about this stable coin and what it is used for.
Tether is useful for crypto investors because it offers a way to avoid the extreme volatility of other cryptocurrencies. Additionally, if you are trading with USDT (as opposed to the U.S. dollar), you do not have the transaction costs and delays that negatively affect your trade execution within the crypto market.
Stable coins like Tether are an emerging class of crypto assets that are finding use beyond the world of trading, including in sectors like traditional cross-border payments.
Tether belongs to a type of cryptocurrency called stable coins, which aims to keep cryptocurrency valuations stable, as opposed to the wide swings observed in the prices of other popular cryptocurrencies like Bitcoin and Ethereum.
The theory is that this stability would allow it to be used as a medium of exchange and a mode of storage of value, instead of being used as a medium of speculative investments.
While Tether has dropped below $1 before, the stable coin can retain its value because it is matched with corresponding U.S. dollars held under custody by Tether and is 100% backed by Tether’s reserves.
There has been some controversy surrounding Tether’s ability to back stable coin. In January 2018, the necessary audit to ensure that the real-world reserve is maintained never took place. Instead, Tether announced it was parting ways with the audit firm. It was promptly issued a subpoena by regulators. Since then, worries about whether the company has enough reserves to back the coin have sprung up.