Guide To Buying Tether (USDT)
As cryptocurrency evolves and expands, the demand for stablecoin assets like Tether also increases. It’s considered one of the most popular stablecoins and attracts a lot of attention from investors and traders alike.
This article will discuss the necessary details about USDT and how to buy the asset for beginners.
What is Tether (USDT)?
Tether (USDT) is the first created stablecoin. A stablecoin is a cryptocurrency https://Troymedia.com/joint-venture/what-is-hyperbitcoinization/ that’s pegged to a real-world or fiat currency (USD, Euro, etc.). Tether is pegged to the US dollar; that’s why it’s called USDT. It’s designed to have the same value in USD, which means one Tether token is tied to one USD held in a Tether’s reserve.
Tether (USDT) has the largest market capitalization. The peg is maintained through collateral, and the 1 USDT for 1 US$ shall be redeemable anytime. You buy 1 USDT through any accepted payment method. You can even buy USDT with credit card or through bank transfers.
How To Buy USDT?
Here’s a detailed guide on how you can buy Tether:
- Open Your Online Account
Sign up for an account on a cryptocurrency exchange like Changelly or any broker with access to Tether. There are many platforms you can choose from but consider these when deciding:
- Features – For beginners, you’d want to register on a platform that can give you a more streamlined experience. Choose one that’s easy to use and is credible without too many overwhelming charts and tools.
- Fees and commissions – Research the fees the broker may charge you to know how much you’ll pay for every buy and sell order.
- Market access – Check what cryptocurrencies you can invest in on the platform. Ensure that they offer Tether and other cryptos you’re interested in.
After choosing, create your account. Make sure to provide the necessary details and complete the verification process.
- Get a Wallet
You can have a separate wallet to store your USDT. A private wallet can be an online or physical wallet that will give you a set of private keys you’ll use to store your tokens safely. There are two major wallet types you can choose from:
- Hot wallet – A digital and online wallet connected to your desktop or mobile device.
- Cold wallet – A physical device that keeps your tokens offline and provides max security for your assets.
- Purchase USDT
When you’re transacting with a broker, the broker will offer you different buying options. The most common ones are market order and limit order. With a market order, you specify the number of Tether coins you want to buy regardless of their current market price. You can specify the amount you’re willing to buy a certain number of Tethers in a limit order.
You’ll handle the transaction yourself if you’re buying Tether through an exchange. You can decide on the number of coins and the amount. In this regard, there are various payment options on many exchange platforms:
- Bank transfer
- Using credit card
- Trading other cryptos
- Buy directly from another person
What to do After Buying USDT?
There are many things you can do after purchasing:
- Holding it in your wallet: Many people hold their USDT, hoping that it will increase in value.
- Trade it: You can trade it for other trading pair cryptocurrencies.
- Spending: You can use your USDT to purchase goods and services.
Advantages of Tether
Tether is helpful to investors and traders, and here are several reasons why:
Fast Transaction
US dollar payments to and from foreign exchanges are commonly time-consuming processes. It typically takes up to 1-4 business days. But with Tether, transactions are completed in minutes only.
No Transaction Fees
The SWIFT (Society for Worldwide Interbank Financial Telecommunication) transfer charges may come pricey. Not to mention the extra bank charges. SWIFT is a network that allows the exchange of money and financial information from many countries. But with USDT, there are zero transaction fees between Tether wallets.
Price Stability
Crypto is highly volatile. That’s why a stable currency is essential. When you trade ETH to BTC, there are many risks with both prices even before finishing the transaction. But with USDT and ETH, you only have to worry about ETH.
Conclusion
Buying Tether (USDT) will be easy as many exchanges and brokers support it. Investing in it can be advantageous, but it also comes with risks. Make sure to be cautious and learn about this stablecoin thoroughly before making any big decisions so you’ll end up with a profit.