So, you want to get into crypto. You’ve heard all of the success stories – people making millions of dollars as the prices of cryptocurrencies like Bitcoin go through the roof. Or perhaps you have friends who make a steady income by mining cryptocurrency.
But maybe you are looking to avoid volatility in the cryptocurrency markets. If so, you may want to know how to buy USDT, a crypto asset that mirrors the value of the U.S. dollar. Each USDT is redeemable for $1. This means you can get the stability of government monies with the efficiency of 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.
You can buy USDT on most crypto exchanges. Create an account on the exchange, buy the Tether (USDT) crypto asset, and transfer it to your crypto wallet.
Read on to learn more about USDT and how to buy Tether.
What is Tether (USDT)?
Tether is a blockchain platform that offers stablecoins. Stablecoins are blockchain-based assets that are linked to the price of government monies (also known as fiat currencies).
Today, Tether supports four stablecoins: the U.S. dollar (USDT), the Chinese Yuan (CNHT), and the Euro (EURT), as well as a stablecoin backed by 1 oz. of gold (XAUT).
As of 2020, USDT remains the largest and most widely used stablecoin.
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 the stablecoin. 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.
Stablecoins are an emerging class of crypto assets that are finding use beyond the world of trading, including in sectors like traditional cross-border payments.
Where Can You Buy USDT?
The first thing you need to know about how to buy USDT is knowing 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 also hidden fees and high commission rates.
How to Buy Tether Cryptocurrency?
After you have found the right crypto exchange for you, 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.
Tether FAQ
Now that you know how to buy Tether (USDT), you may want to know more about this stablecoin and what it is used for.
What Is Tether 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.
Stablecoins 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.
Is Tether a Stablecoin?
Tether belongs to a type of cryptocurrency called stablecoins which aim 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.
How Does Tether Stay at $1?
While Tether has dropped below $1 before, the stablecoin can retain its value because it is matched with corresponding U.S. dollars held under custody by Tether and 100% backed by Tether’s reserves.
There has been some controversy surrounding Tether’s ability to back the stablecoin. 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.
Conclusion
If you are looking to avoid volatility in the cryptocurrency market, you may want to know how to buy USDT. Tether (USDT) is a crypto asset that mirrors the value of the U.S. dollar. Each USDT is redeemable for $1. This means that you can get the stability of government monies with the efficiency of 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.
Stablecoins 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.
Remember, cryptocurrencies are still subject to tax. You can buy USDT on most crypto exchanges. Create an account on the exchange, buy the Tether (USDT) crypto asset, and transfer it to your crypto wallet. It’s as easy as that!