Cryptocurrencies have taken the Internet by storm, but did you know that they are often referred to as blockchain decentralized digital currencies? Today, there are many different types of cryptocurrencies, with one gaining more and more attention than 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 unique value lies in its credibility as an online asset. You can use it for transactions, similar to bitcoin.
What is Tether?
Tether (USDT) is a cryptocurrency whose value is tracked against the US dollar. There is no company behind this coin, it’s just an open-source idea that anyone can use to create their own version of Tether. Tether aims to be 100% backed by US dollars. This coin uses a different address format than Bitcoin and has many technical differences. But in essence, it works like any other cryptocurrency when you send and receive.
Are stablecoins a good investment?
Is Tether a Good Investment? Many people argue that it is not, but it all depends on the case. Many people believe that a stablecoin is great for low-risk investments. However, a stablecoin will always increase and decrease in value. So you need to ask your self if you are looking for an investment that has the potential to make you rich or one that can reduce any potential loss to a minimum.
Where can I buy Tether?
If you want to buy Tether, there are several ways you can do so. For starters, although it is still in development, some exchanges allow you to deposit US dollars with a credit card to buy US dollars. Some wallets also have different options for depositing and withdrawing USDT. You can always visit the exchange’s website to see if there is a deposit option for USDT and then you can link your trading wallet to it to deposit or withdraw from there.
How to buy Tether
The following steps will guide you on how to buy Tether (USDT) on your digital currency exchange using a popular online wallet.
Register to exchange
First, you have to sign up for an exchange to buy Tether. There are a few different options for exchanging money to USDT, but you should start with one of the most popular. Go through the signup process and set up your account with 2-factor authentication.
Buy USDT with Bybit
Bybit is a popular digital currency exchange based in Hong Kong. It allows you to buy tethers using the USDT/CNY pair. To buy USDT, you will need to deposit CNY into your account and exchange it for the cryptocurrency of your choice.
How to Use Your USDT on ByBit
After you have purchased USDT, the next step is to go to the ByBit exchange and see the list of supported currencies. You have to select CNY as your currency pair and then search for USDT. If you are new to cryptocurrencies, you should buy Bitcoin or Ethereum on an exchange like Gemini. Then, once you’ve bought them, trade some Ethereum for USDT using Changelly or ShapeShift so you don’t have to wait long to transfer money over to Tether.
How to store Tether?
The most common way to store your Tether is to download a software program for it. If you’re not sure which software program to download, research which wallets support Tether. A simple but effective option would be a hardware wallet like the Ledger Nano S or Trezor. You can also use an online wallet like Coinbase, which allows you to store fiat currency e USD, in your Coinbase USD wallet.
Advantages of Tether
1. Stablecoins are good for risk management
Stablecoins are built so that one can use them for low-risk investments. They don’t go up and down like other cryptocurrencies like bitcoin; therefore, the value of Tether is always consistent.
2. Payment in US dollars.
Another big advantage of Tether (USDT) is that you can use it to make payments in US dollars on your credit card, Paypal account or bank transfer (Bitcoin/Ethereum only). It makes it easier for you to shop online because you don’t have to spend time finding a merchant that accepts Tether.
3. USD reserves back to Tether.
Tether is backed by USD reserves, which means 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 does not require long confirmation times. You will find that you can deposit digital currency within minutes of placing your order.
It is a digital currency backed by US dollars; therefore, there is no risk of price fluctuations when using it. That means you will always be able to pay with the exact equivalent of when you were 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 like Binance, Poloniex, and Bybit. To buy USDT, you must transfer your chosen currency from these exchanges to an exchange wallet that supports Tether. Once you’ve done this, you’ll be ready to buy USDT in your chosen currency.
Blockchain and Cryptocurrencies are changing the world. But really, it’s important to understand that since there are so many forms of stablecoins, it’s not a good idea to put all your eggs in one basket. You should have at least some percentage of your portfolio in different currencies, or hold small in some version of the stablecoin. It will equip you to handle any situation in the cryptocurrency market. Tether is one of those stable coins that gives you a lot of options when it comes to managing your investments.