Best USDT Buying Guide

usdt

There are many different digital assets in the world of cryptocurrency. Some are designed for specific use cases, while others serve as alternatives to other coins. Some tokens exist as value stores or digital quasi-currencies.

If you have found yourself exploring the world of crypto and wondering what these tokens are, how they work, and which ones you should add to your portfolio, this article is for you.

In it, we’ll be discussing the specifics of USDT (or USD-pegged Tether), one of the most interesting tokens out there right now. Let’s get started!

What is USDT

USDT, or USD-pegged Tether, is one of the most widely traded tokens in the world. It is also one of the most controversial. Tether is meant to be a digital quasi-currency that can be used as a substitute for USD in most situations.

It’s meant to be easy to transfer and use and can be kept in a wallet like any other token. This token is especially popular among investors who want to add extra stability to their portfolios by holding a token with a value pegged to another asset class, like the USD.

How Does Tether Work?

Tether claims to have a 100% dollar-for-dollar reserve of all Tether tokens currently in circulation. This means that there is a dollar in a bank for every Tether token issued. Thanks to this reserve, Tether is meant to be a kind of digital asset with a stable value.

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The idea is that users who want to hold some of their funds in Tether can do so, while those who want to buy and sell with Tether can do that, too. Tether tokens can be used as a substitute for USD in many situations, exchanges, and decentralized apps (or “dApps”).

This token also has other interesting features, like the ability to redeem Tether tokens on the blockchain, even if you don’t have your wallet connected to the internet.

Why is Tether Used?

Tether is used by traders and investors who want to buy usdt or hold a stable value token that can be used as a substitute for the USD in trading. Traders who want to hold some of their funds in Tether often do so because they’re concerned about the value of their other assets or want to hedge against a possible market dip.

With Tether, investors can convert some or all of their funds into stable assets. This can be useful if you want to avoid sudden dips in the value of your portfolio. Tether claims it can maintain an exchange rate of $1 per token, giving you peace of mind.

Who’s Behind Tether?

Tether is helmed by the exchange Bitfinex. Bitfinex is one of the world’s largest cryptocurrency exchanges and also one of the oldest. The company has been around since 2012, when Raphael and Jean-Louis Van der Velde founded it.

The company has had troubles recently, including a hack in 2015 that saw more than $5 million in funds stolen. It has since been bought by Taiwanese billionaire and businessman Phil Potter.

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How to Buy Tether?

If you want to buy Tether, you can do so through several exchanges and trading platforms. Bybit, Binance, Bitfinex, Ethfinex, Huobi, and Kraken are some of the most common places to buy Tether.

You can also use these exchanges to sell your Tether tokens. Most of these platforms will let you trade Tether tokens for other cryptocurrencies, but some will also let you exchange them for USD.

Where to Buy and Store USDT?

As mentioned above, very few cryptocurrency exchanges let you buy Tether directly. The most popular option is to buy Bitcoin or Ethereum on one of these exchanges, move it to an exchange that supports USDT and then trade the BTC/ETH for USDT.

Bybit.com

Bybit.com is a cryptocurrency exchange based in Singapore, and it is one of the few that lets you trade USDT for fiat currency. It supports both English and Chinese users, using the English version for US-based users.

Bybit offers several trading pairs, including BTC/USDT, ETH/USDT, EOS/USDT, and more. You can deposit your funds into the exchange either through cryptocurrency or fiat. If you want to use fiat currency, Bybit can help you through bank transfers or credit card payments.

If you’re looking for a more stable place to store your Tether, you can use the official Tether wallet. This wallet has been around since 2014 and offers iOS and Android apps. It also allows you to store your USDT offline by printing out a piece of paper with your public and private keys.

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Is USDT a Good Investment?

The value of USDT is directly linked to the value of the U.S. dollar, which means that if there is a massive economic crisis in the United States, Tether holders could lose all their money when they buy usdt.

Even if this doesn’t happen, Tether may become less valuable than one dollar because of a sudden influx of new cryptocurrency investors who don’t want to deal with price fluctuations and prefer to have their money in a stable form.

In other words, USDT isn’t an investment as it is an attempt to create a stable cryptocurrency that can be used for high-value transactions instead of Bitcoin or Ethereum. Even though these coins are designed to be perfectly stable, their prices still fluctuate wildly (take a look at what happened when Bitcoin Cash forked from Bitcoin).

The Future of Tether

It is impossible to say whether or not USDT will survive in the long term. However, suppose cryptocurrency continues to gain popularity as an investment vehicle. In that case, there could be a huge demand for stable coins like USDT that allow people who aren’t interested in trading cryptocurrencies all day long to invest their money without worrying about their value changing drastically overnight due to volatility in the market.

If you want a more durable option for storing your cryptocurrency profits, USDT could be the right choice. If you are concerned about the stability and longevity of this coin, however, you should consider keeping your cryptocurrency in its original form rather than converting it into USDT.