Cryptocurrencies have taken the internet by storm, but did you know that they’re often referred to as blockchain decentralized digital currency? There are many different types of cryptocurrencies today, with one gaining more and more attention than the others, Bitcoin. But what about currencies other than bitcoin? One popular Cryptocurrency is Tether (USDT). Tether is a cryptocurrency with no real-world value. Its only value lies within its credibility as an online asset. You can use it for transactions, similar to bitcoin.
What is Tether?
Tether (USDT) is a cryptocurrency with a value that tracks the US dollar. There is no company behind Tether, it is just an open-source idea that anyone can use to create their version of Tether. Tether aims to be 100% backed by the US dollar. The coin uses a different address format than Bitcoin and has many other technical differences. But in essence, it works like any other cryptocurrency when you send and receive it.
Are Stablecoins Good Investments?
Is Tether a good investment? Many people argue that it is not, but it all depends on the situation. Many people hold to the belief that a stablecoin is excellent for low-risk investments. However, a stablecoin will always go up and down in value. So you need to ask yourself if you’re looking for an investment that could potentially make you rich or one which will bring any potential losses down to a minimum.
Where can I buy Tether?
If you want to buy Tether, there are several ways you can do so. For starters, though it is still in development, some exchanges allow you to deposit US dollars using a credit card to purchase US dollars. Some wallets also have different options for depositing and withdrawing Tether. You can always visit the exchange website to see if there is a deposit option for USDT, and you can then link your trading wallet with it to deposit or withdraw from it.
How to Buy Tether
The following steps will show you how to purchase Tether (USDT) on your digital currency exchange using a popular online wallet.
Step 1: Sign Up for an exchange
First, you must sign up for an exchange to purchase Tether. There are a few different options for exchanging money for USDT, but it’s a good idea to start with one of the most popular exchanges. Go through the registration process and set up your account with 2-factor authentication.
Step 2:Buy USDT on Bybit
Bybit is a popular digital currency exchange based in Hong Kong. It allows you to buy tethers using the USDT/CNY pairing. To purchase USDT, you will need to deposit CNY into your account and exchange it for your choice of Cryptocurrency.
Step 3:How to use your USDT on ByBit
After you have purchased USDT, the next step is to go to the ByBit exchange and look at the list of supported currencies. You must select CNY as your currency pairing and then search for USDT. If you are new to cryptocurrencies, it is a good idea to buy Bitcoin or Ethereum on an exchange like Gemini. Then once you have purchased them, trade in some Ethereum for USDT using Changelly or ShapeShift so that you don’t have to wait a long time for Tether transfers.
How can I store Tether?
The most popular way to store your Tether is to download a software program for it. If you’re unsure what software program to download, research which wallets support Tether. One simple but effective option would be a hardware wallet such as a Ledger Nano S or Trezor. You could also use an online wallet such as Coinbase, which allows you to store your fiat currency e USD, in your Coinbase USD wallet.
Advantages of Tether
1. Stablecoins are great for risk management
Stablecoins are built so that one can use them for low-risk investments. They do not go up and down as other cryptocurrencies as bitcoin do; therefore, Tether’s value is always consistent.
2. Making payments with US dollars.
Another massive advantage of Tether (USDT) is that you can use it to make payments using US dollars on your credit card, Paypal account, or bank transfer (currently Bitcoin/Ethereum only). It makes it easier to buy things online since you’re not required to waste time finding a seller who accepts Tether.
3. USD reserves back Tether.
Tether is backed by USD reserves, meaning you can buy US dollars with Tether. This feature makes it a much more reliable investment than other digital currencies.
4. Fast transaction
Unlike other cryptocurrencies, Tether can be transferred quickly and without a long confirmation time. You will find that you can send digital currency within minutes of making an order.
5. Stability
It is a digital currency backed by US dollars; therefore, there is no risk of price volatility when using it. It means that you will always be able to make payments at the exact equivalent value of when you got paid in USD.
6. Easy to buy and sell
Tether is easy to buy. You can exchange Bitcoin or Ethereum for USDT on popular exchanges such as Binance, Poloniex, and Bybit. To purchase USDT, you must transfer your chosen currency from these exchanges to the exchange wallet supporting Tether. After completing this, you will be ready to buy USDT with your chosen currency.
Blockchain and Cryptocurrency are changing the world. But really, it is essential to understand that since there are many forms of stablecoin, putting all your eggs in one basket is not a good idea. It’s a good idea to have at least some percentage of your portfolio in different coins or small holdings in several versions of stable coins. It will equip you to handle any situation in the cryptocurrency market. Tether is one of those stable coins which give you a lot of options when it comes to managing your investments.