You might know about Bitcoin and Ethereum in Cryptocurrency but have you heard about USDT? If not then go through this guide and find out what is USDT, its uses and how you can buy it. Newbies in the crypto industry are only aware of a few top cryptocurrencies including BTC, ETH, XRP etc. however, there are more than 5000 cryptocurrencies out there, among which some are stable coins like USDT. USDT is also called Tether which is made to be valued equal to 1 US dollar. It means that 1 Tether would always be equal to 1 USD although there are many controversies associated with the coin. Let’s know more about USDT, its benefits and use cases.
What is USDT (Tether) cryptocurrency?
Tether is a stable coin which claims itself to be back with fiat currencies like USD, Euro and yen. The stable coin is created by Tether Limited which operates on an Omni protocol as a cryptocurrency token.
Tether is widely known as USDT (US Dollar Tether), there is a solid reason behind that. Tokens issued by tether have an exact value of USD, which means 1 Tether = 1 USD and it can be redeemed in the market with the same value.
Despite the claims of the company that they have fiat currency reserves, there is no solid proof of it which makes the token a little shady. Tether is ranked among the top five cryptocurrencies with a market cap of $6,348,025,556 at the moment. Moreover, there are more than 6 Billion USDT in circulation with each coin equal to $1 approximately. Now that you know what is USDT, let’s talk about its advantages.
What are the Advantages of USDT?
What does Tether offer that it is listed among the top cryptocurrencies? Let’s discuss the very benefits of Tether stable coin and the reasons it is in so much limelight.
- The Stablecoin is issued on top blockchains that include Bitcoin, Ethereum, Litecoin, Algorand, EOS, Liquid Network, Omni, Tron and Bitcoin Cash. It means that anyone using the wallet that supports any of the above cryptocurrency can send or receive Tether token also.
- Unlike other cryptocurrencies, Tether is not volatile and has a stable value equal to fiat currencies like USD and Euro.
- Tether Limited publishes its reserves on a daily basis. Like other cryptocurrencies, it is traceable on the public blockchain.
- The Stablecoin is widely adopted and you can buy or sell it on all major exchanges. Most of the exchanges let you buy cryptocurrencies like Bitcoin and Ethereum in exchange for Tether which is a less costly option as compared to direct fiat to crypto trading.
There are so many cryptocurrencies in the market to trade, which raises a genuine question: Why Tether? Why will any individual or organisation choose Tether’s Stablecoin over the rest of cryptocurrencies?
The value of the rest of the cryptos depends upon the market factors and risks. No one can actually predict whether these cryptocurrencies would go up or down in future and what would it worth.
If we talk about Bitcoin, its value keeps fluctuating. If today it is worth $7000, tomorrow its value can go down to $6000 or below, which shows how unstable bitcoin is. To deal with this problem Tether introduced its Stablecoin, which holds a static value.
Here, the static value represents the actual value of physical currency, which solves the problem of worrying about its worth. It means if you have a stable coin its value remains the same till you own it, i.e $1.
Disadvantages of Tether
Companies like Tether are hard to audit. We are only able to see what they show us.
In 2017, when people were widely selling and withdrawing tether for physical currencies, the company started having issues solving transactions, even though they have assured us of having a 100% backup.
The issue with Tether Stablecoin is that it has to maintain the required cash amount, but we all know any organisation with that large amount of money will not keep it in a locker to collect dust, they better invest to gain profits.
Which raises a question, “Does the company have a balance to withdraw coins or they have invested all?”
Moreover, you should remember that even though the company claims Tether’s value to be pegged at 1 USD, the price can still go down. All these doubts about the stable coin are because there is nearly no proof whether Tether Limited can support the value of the USDT or not.
How Do You Use USDT?
If you are wondering where you can use Tether and what for, then read the use cases of Tether given below:
- Tether is a stable coin and its value is pegged with the value 1 USD. It is the core feature of Tether which makes it unique from other cryptocurrencies in the market. So, if you invest in USDT for a long time, you can earn great benefits from it without worrying about the crashing prices. You won’t need to keep an eye on the market trends and get yourself in the complicated business of crypto trading and can HODL at ease.
- If you are chasing another cryptocurrency, say Bitcoin or Dash, you must know how expensive it is to buy it from fiat currency. Moreover, many top crypto exchanges don’t even provide fiat to crypto trading which makes it impossible to trade in crypto for beginners. Here comes Tether which is worth equal to a dollar and has less transaction fee. You can simply buy Tether from any of the top exchanges and exchange it with other crypto assets.
So these were the main uses of Tether. One more benefit of Tether is that it can easily be converted into dollars through tether.io.
How to Buy Tether with Credit Card?
If you want to buy USDT with fiat, you need to sign up on Tether Limited. You can acquire Tether from its official website by depositing your USD into the account. Make sure you have a safe wallet where you can transfer your Tether coins safely after purchasing them from Tether Limited.
You can also purchase Tether in exchange for other cryptocurrencies like Litecoin, Ethereum, Bitcoin etc from top cryptocurrency exchanges. Other crypto exchanges like EXMO also allows you to buy USDT with debit card/credit card. like other exchanges, you will need to sign up on the platform, verify your identity, deposit fiat currency and then withdraw your funds. To know how to withdraw USDT coins from these exchanges, you can check the help section. the withdrawal process of cryptocurrencies is almost similar on all exchanges. it is just like transferring crypto coins from one wallet to another wallet.
Tether is secure, Tether has many benefits, it is secure, non-volatile but still, it can be risky. Anyways, it is a cryptocurrency and no one can actually guarantee what will happen in future. If you decide to trade in Tether, we suggest you do extensive research about what is USDT, how safe is USDT, the company behind and stable coin and check out all its aspects. To know more about such cryptocurrencies or if you want to know which crypto coin is worth investing in 2020, read more of our guides.
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