- 6.1 Step 1: Open Your Account
- 6.2 Step 2: Account Verification
- 6.3 Step 3: Deposit Currency
- 6.4 Step 4: Purchase USDT
Tether is a kind of stable coin. In today’s world, it is one of the most popular. The demand for this coin has been on the rise. People all over the world are shifting towards a much-secured form of currency transfer through currency trading. If you want to trade Tether, you should know everything about it first and follow a complete guideline to buy it.
Tether is a kind that is usually joined with various fiat coins. For instance, USDT is pegged to the USD and issued by the company Tether. There are a lot of benefits of such currencies. It allows traders to exchange, trade, buy, and sell amounts equivalent to fiat money without regular currency.
However, there are more things to know about Tether. Here is a complete guideline to understanding everything about it.
What Is Tether: Building a Deep Understanding
One of the key concepts behind creating Tether is to reduce volatility in the prices of different cryptocurrencies. But what exactly is Tether? Before we dive into the depth of Tether, we need to know about stablecoins.
What is Stablecoin?
Stablecoins are cryptocurrency. This is a type of cryptocurrency that is pegged with currencies of the real world. The real-world currencies are called fiat currencies. This means that a stablecoin pegged with the USD or Euro will carry an equivalent value of that currency in the digital world.
This peg is maintained by centralized companies who issue the stablecoins. These companies maintain supply in two things. Firstly, they put collateral on the stablecoins to manipulate the supply of these coins. And secondly, they put specialized algorithms to maintain the supply of stablecoin according to its demand in the market.
The idea of using stablecoin is to trade currency without real-world restrictions put on fiat currencies. As a result, you can easily exchange currencies like BTC with USDT without actually trading fiat currencies in reality. Therefore, the currency exchange in the digital platform remains unregulated and always ready for trade.
What is the Tether Coin?
In the year 2014, J.R Willet was working on MasterCoin, while Brock Pierce and Craig Sellers were working on developing the coin. In the same year, they found a new protocol of the MasterCoin, called the Omni Layer Protocol. This protocol enabled the creators of Tether to use the blockchain technology of Bitcoin.
From there, the Tether name was invented in place of Realcoin, and the CEO of Tether introduced 3 new currencies. These currencies are USDT (USTether), EURT (EuroTether), and YENT (YenTether).
The Tether project quickly gained popularity and grew in the market. Later on, more ERC-20 Tether coins were produced for the Ethereum blockchain. Today, Tether is present in Bitcoin and Ethereum, the two most important platforms in the world of cryptocurrency.
The value of Tether coins is exactly equal to the fiat currency it is pegged with. For instance, 1 USDT carries exactly $1 value in the market. Moreover, Tether currencies follow the same pattern as the fiat currency in the real world.
As a result, customers are secured from cryptocurrency’s volatility. To exemplify, when the USD’s value goes down or up overnight, the same thing will happen to the value of USDT.
How Tether Works?
The Omni Protocol operates the whole function of Tether. This protocol runs in a blockchain of cryptocurrency.
The Tether project runs on several cryptocurrencies. Some of them are Bitcoin, Ethereum, Liquidity Network, Tron, and EOS. It enables you to protect your asset by storing, buying, and selling it. Moreover, Tether provides you transparency. As a result, the transactions are always public.
The USDT has a Booking test for a better user experience. This way, the system of Tether links back to the account of the users to find out the currency equivalent. This ensures for the collateral to be 1:1 with the USD.
How will users exchange currency? If you want to exchange fiat currency for USDT, you will first deposit the dollars in the Tether Limited account. The company will count, validate, and then send the equivalent amount of USDT in the account of the user.
The same thing will need to be done if the user intends to exchange dollars with USDT. In the end, the company will demolish the USDT and send you the dollar amount in your account.
How are Tether Fees Calculated?
Tether fees are calculated on the basis of the total completed transaction in the last 30 days. The Tether fee usually represents a certain amount of money needed to withdraw or deposit fiat money.
There is also a verification fee in Tether. This amount is non-refundable. However, you can include it as your redemption. The amount to verify your account is 150 USDT. Why is there a verification fee?
This fee ensures that people who are actually serious and committed to opening an account are here to do exactly that. Moreover, the verification process is really robust. This incurs a lot of extra costs for Tether. The verification fee is a way to redeem the cost of opening a strictly verified account.
Difference Between Tether and Bitcoin
Even though both the cryptocurrencies lie in a similar blockchain, there are several differences between the two widely popular and demanded cryptocurrencies.
Firstly, Tether completely belongs to a private entity. It is invented and captured by Tether Limited. On the other hand, Bitcoin is a decentralized cryptocurrency. Just like any other cryptocurrencies, Bitcoin has volatile characteristics. Tether was introduced to reduce and diminish the volatility in the crypto market. Therefore, USDT has no issues related to volatility.
Tether is not minable at all. On the other hand, several miners work every day to mine Bitcoin. Mining a Bitcoin is also a very complex task.
Finally, the production limitation of Tether is set by the company it is owned by, namely Tether Limited. In contrast, Bitcoin has a certain amount of limit in its production. The limit of production of Bitcoin is about 21 million.
Why You Should Buy Tether?
The cryptocurrency market can sometimes be extremely volatile. The USDT can be a powerful tool for you to avoid the volatile market of cryptocurrency. How so? Since USDT can be redeemed for US dollars, that is how!
For one, your cryptocurrency value may drop at any time. But if you shift to USDT, you can get away from such a problem. Tether coins follow the characteristics of the actual real-world currencies. In addition to this, Tether currencies can remove costs related to transactions. Moreover, USDT delays the execution of impaired trade in the crypto market.
Where to Buy USDT
There are several options to buy USDT from. One of the most popular platforms would be Kraken. This is a global exchange platform that is trusted by many.
There are several other platforms, as well. For instance, Bitnovo is another trusted exchange platform to buy Tether.
One of the key features of these platforms is their security. These platforms are rated to be one of the trusted platforms by many users across the globe. Moreover, they offer a very small amount of fees along with high rated user experience.
The design and technical aspects of these platforms are more focused on securing the funds deposited by users. Being able to trust an online platform gives users a lot of credibility and comfort to use actual money to buy cryptocurrencies.
How to Buy USD Tether: A Complete 4-step Guideline
One of the major reasons why you should buy Tether is to avoid volatility. So, you have decided to go ahead with your decision. All you have to do now is follow these 4 steps to buying Tether.
Step 1: Open Your Account
The first step to any online transaction is to create your own account. To open an account, you will need to provide your email address, username, and a strong password. It is important to know that the password must be really strong as you will storing valuable currencies in your account. Any exchange platform will verify your account. Verification is a key part of opening your personal account in Tether exchange platforms.
Step 2: Account Verification
Once you open your account, you will need to verify it by providing several personal information. You will need to provide your date of birth and verify your age. Then you will need to provide your country of residence and phone number. With these pieces of information, you will be allowed to buy LTC and DASH kind of cryptocurrencies.
In order to buy Tether by using fiat currencies, you will need to provide additional personal information. This could include valid ID and photo verification. Once you do all these, you can now buy Tether using fiat currencies.
Step 3: Deposit Currency
After verifying your account, you are now capable of depositing your currency in your account. This will depend on the location of the residence you provided. Each location has different ways of finding the currency deposit option.
Moreover, there will be several ways to deposit funds into your account. We will look into it in the latter part of the article. You should be absolutely prepared and sure to provide your account information before transferring funds.
Step 4: Purchase USDT
Since now you have fiat currency in your account, you are ready to purchase USDT through the platform. Different platforms will provide you with different offerings. For instance, one platform may offer you access to advanced charting tools. On the other hand, other platforms may provide you with offers like margin trading and constant client support. All these are necessary for a user-friendly experience.
How to Buy USDT Using Other Cryptocurrencies
If you already have some cryptocurrencies, it will be a wise decision to trade them with USDT. The first task would be to go to the platform. After that, you select the coin you would like to exchange with USDT.
From there, you go to the exchange page and find out the amount of USDT you can exchange with your existing cryptocurrency. Once you send all your cryptocurrencies, you can start receiving the USDT equivalent to the amount you have sent.
Where to Store USDT
After you buy Tether, you will want to store your USDT in a secured place. The platform you used can be one of those places. But there are other options as well.
Just like your wallets to keep fiat money, there are USDT wallets to store your bought Tether. However, any wallet will not be suitable for any cryptocurrency. There are specific USDT wallets that you will require to store the Tether currency.
Depending on the type of information you intend to store, the type of wallet will vary. The first thing you may want to store is called hardware storage. These wallets store private keys. These are so secured that it is almost impossible to access from the platform you purchased Tether from. Hardware storage is perfect for storing digital assets without giving any other party access to your stored pieces of information.
The other type of wallet is desktop wallets. This type of wallet is perfect for beginners to store their USDT. A desktop wallet is much simpler and easier to navigate than other wallets. As a result, it is an ideal wallet, to begin with, in the world of cryptocurrency. You can store valuable USDT as well as save 100 tokens in desktop wallets.
Tether Stock: What the Future Holds
Currently, Tether has more than 3 percentage of the total market share with its market cap dominance. With the high volume of exchange and trade in the market, what does the future hold for Tether?
Firstly, Tether provides stability to the volatile market of cryptocurrency. It is a digital version of currencies that we use every day of our lives. Digital transactions can make our life easier, cheaper, and faster.
In simple terms, Tether is literally the same currency that we use in the physical version. It is safe to say that it will be a viable investment to invest in Tether. Many experts actually believe that the future of cryptocurrency is at the hands of Tether.
More importantly, Tether can make the concept of digital currency much more acceptable and mainstream. Transfer of money will be a lot easier with the help of Tether.
The statistics do not lie either. Market predictions say that investing in Tether could give you a very good return in the next 3 to 5 years. As you can understand, USDT can be quite a profitable investment in today’s world.
With its stable characteristic, Tether can be your one stable long-term investment. Cryptocurrency can help you in storing the value of your money. The tether can be one of the best options in this regard.
Final Quotes on Tether
The world is moving to a condition where online exchanges will take over the physical exchange of goods. Cryptocurrency has been around us for a long time now. People have started to accept and be open about the possibility of leaving fiat currencies and get accustomed to the crypto world.
Tether was created majorly to solve a long-term issue of cryptocurrencies with a type of stablecoin that has an equivalent value with fiat currencies it is pegged with. As a result, if you want to trade Tether or invest in Tether, this article is just perfect for you.