What Is Tether (USDT)?
Stablecoins like Tether were created with the purpose to permanently replace legal tender currencies (fiat currencies). Tether is anchored to the US dollar, but it’s also anchored to euro (EURt) and the Chinese yuan (CNHt).
The cryptocurrency was released in October 2014, originating on the JR Willett Mastercoin protocol – the first ever ICO (Initial Coin Offering) created. USDT was first called Realcoin, to showcase its difference from other coins. However only four months after its release it acquired its current name.
The stablecoin was co-founded by Brock Pierce and Craig Sellars, official member and CTO of the Mastercoin Foundation, and Reeve Collins, the co-founder of SmartMedia Technologies.
The Current Tether Price
As mentioned, stablecoins don’t fluctuate like other cryptocurrencies do, their price ranges with much lower volatility, compared to others. That’s why the Tether price doesn’t show large variations over time and the fluctuations in the stablecoin’s value are mainly due to the price changes in the US dollar, to which USDT is pegged.
To get more detailed look at the price movements of USDT, you can consult with the graph below.
Where to Buy Tether Coin (USDT)
USDT is in the top 5 biggest cryptocurrencies by market capitalization. Here we’ll discuss how and where you can buy it.
How to Buy and Trade Tether
If you want to buy cryptocurrencies, the most popular options online are: CFD trading or directly purchasing them on an exchange.
The difference between the two common types is that with CFD trading you are required to sign contracts for difference. They are standardized contracts and easy to manage, as well as derivatives, because they replicate the value of an underlying.
The second option, buying cryptocurrencies on trading platforms, is for people who want to take advantage, to speculate, of the value of an asset. That would mean to buy USDT when the value is lower and sell it when it has increased enough to bring you gains.
Where to Buy and Trade Tether
If you want to buy USDT on a platform for crypto trading, you could choose a broker, like eToro, or exchanges, such as Coinbase, Binance, or Kraken. Your decision where to buy the stablecoin could be influenced by various factors, related to what you’re looking for when making your purchase.
If you want to buy the asset on a regulated platform, you’d choose a broker or a centralized exchange (CEX). If you want to trade the stablecoin peer-to-peer, without a third party in the transaction, then your best bet would be a decentralized exchange (DEX), like Uniswap, for example.
You should also consider what fees the platforms will apply, what is the level of security of the exchange or brokerage, how they respond to customer support, do they have a built-in wallet, and more additional information you may want to research first.
What Is the Best Wallet for Tether (USDT)
When you’re deciding where to buy the stablecoin, you should also consider what wallet you’re going to use after the purchase. Choosing the right wallet is very important not only to meet your specific needs but also to secure your USDT coins, thus protecting them from any cyber attacks and theft.
Before deciding which crypto wallet is best for your needs, it is good to know that there are two types.
The first type is that of hot storage wallets. These are always connected to the internet and are very convenient for those who often use exchange platforms. Some platforms like Coinbase and Binance which also offer their own integrated wallets.
The other category of wallets is called cold storage wallets , also known as hardware wallets . These wallets work offline and connect to the internet only when the user wishes to operate with cryptocurrencies. Some of the most popular examples of hardware wallets are Ledger Nano X and S. They look like USB flash drives and connect to your computer when you need to make the transaction. The X version is more advanced, supporting more applications at a time and a Bluetooth connection.
How to Make Money With Tether
You may be wondering, if USDT is pegged to the dollar, meaning its price is always around $1, then how could you make money out of it? The trust is, you can’t expect any long term investment returns with any stablecoin. The more time passes, the more the value of the coin will tend towards the exact dollar.
Considering this, you can’t expect to earn any huge returns from USDT, or any stablecoins. Instead, there is certainly more fertile ground for traders, who can try to catch the small daily fluctuations of the exchange. In this way it is possible to earn something, taking advantage of rises and falls.
In this regard, many are also wondering if it is possible to “mine” (therefore extract) UDST coins, as happens for many cryptocurrencies. The answer in this case is no: mining for Tether coin is impossible, as only the organization behind the coin with the same name can issue this cryptocurrency. It will therefore be possible to proceed exclusively with the purchase to obtain new USDT coins.
What Are the Pros and Cons of Tether (USDT)
Pros of USDT coin
✔️ Not as susceptible to market fluctuations
✔️ No fees for currency transfers in Tether wallets
✔️ Very fast transaction times
✔️ More stability than traditional cryptocurrencies
✔️ Price close to the reference fiat
Cons of USDT coin
❌ You can’t mine new coins, only the Tether company can issue them
❌ Absence of anonymity
❌ Can block and freeze user funds
❌ Inability to do cross-chain operations
❌ Is not yet accepted a fiat alternative
Is Tether Worth Following?
Is it worth buying the USDT coin? If you’re looking for a crypto asset to make bit profits for you, this may not be the most suitable one. As mentioned, this cryptocurrency is a stablecoin, so it is not characterized by the volatility that typically characterizes this digital asset. The Tether price is closely connected with the US dollar.
By virtue of this and beyond the opinions that may be had about it, this stablecoin can be especially convenient if you are looking for assets with a stable value to be included in your portfolio, to counterbalance other more volatile ones or to be protected from future devaluations. Furthermore, USDT can agree to buy other cryptocurrencies with a stable value to use, with the certainty that in the future it will not be subject to heavy devaluations. Indeed, the value of Tether moves in a very narrow range, between $ 0.99 and $ 1.02.
After all, Tether also has the advantage of being usually accepted by many exchanges, so there will be no need to make multiple passes, as it may be needed for other altcoins.
FAQs About Tether (USDT)
Since Tether has a value that is pegged to that of the US dollar, the answer to this question is simple. Basically, when cryptocurrencies increase in value against the dollar, it is worthwhile to sell Tether and invest, for example, in Bitcoin or other altcoins.
They are safe to the extent that you choose safe and reliable exchanges, and have a good reputation. However, you should keep in mind that all cryptocurrencies have their volatility to some extend and also consider the places where you buy them.
You can spend them by buying other cryptocurrencies or new USDT coins. It is yet to be accepted as payment method in more places, to work as a fiat alternative.
Surely it is good to have an investment strategy in general on cryptocurrencies, but also specifically on Tether coin. Since it is a stablecoin, it is necessary to make important and in-depth considerations before launching into the sale of this crypto.
And it is certainly good to have a clear overview of the dollar’s trend, since Tether coin is inextricably linked to it.