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A brief guide on buying and investing in Tether

A brief guide on buying and investing in Tether

A brief guide on buying and investing in Tether

Thu May 11 2023 01:00:00 GMT+0000 (Coordinated Universal Time)

Cryptocurrency continued its popularity up to this day with Bitcoin still on the top. But there’s one that stands out among the stablecoins, functioning as fiat and crypto combined— Tether (USDT). Tether has long been one of the top 5 by market cap ever since, so you better check it out. Learn more here. 

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What is Tether (USDT)?

USDT (₮), also known as Tether, is a stablecoin that has a value equivalent to 1 United States Dollar. It was originally known as ‘Realcoin’ and was created by a company called Tether Limited in 2014. As a stablecoin, Tether has a fixed value that allows it to avoid the volatility of other cryptocurrencies.  

Tether is also a blockchain-based platform that monitors your deposited fiat money through a digital platform. It acts as a bridge for fiat and cryptocurrencies to coexist on a single platform whilst maintaining a stable value in the long run. 

There are five types of USDT based on different blockchain networks you can buy:

  • Bitcoin USDT

  • Ethereum USDT (USDT-ERC20)

  • TRON USDT (​​TRC20)

  • EOS USDT

  • USDT-Algorand.

These USDTs essentially have similar functions, but their transaction speeds differ based on what blockchain-based USDT you prefer using. 

Tether’s goal

It aims to serve as a bridge between fiat and cryptocurrency with a decentralised system to back it up. This means that the processing period is shorter because there is no third-party to interrupt the flow of transactions. 

Stablecoins are considered more accurate and secure because their value always stays  equivalent to fiat money they represent. It grants users a way to avoid the constant volatility problem and directly transfer money with less hassle.

Current status of Tether

USDT has a value equivalent of $1. Since its creation and launch onto the Bitcoin blockchain network, USDT has now become available on 14 cryptocurrency networks, namely the following: 

  • Ethereum

  • TRON

  • Omni (Bitcoin)

  • EOS

  • Algorand

  • NEAR

  • Kusama

  • Tezons

  • Polygon

  • Statemine

  • Solana

  • Avalanche

  • Liquid Network

  • Bitcoin Cash.

This expanded network makes USDT more accessible to traders who use different blockchain networks. As a result, the coin’s market value can substantially grow in time as more people use it across networks. 

Currently, it is one of the top stablecoins in the market.

Growth in 2023

Various crypto platforms have predicted that USDT will maintain its value or steadily grow from 2023-2025. 

True enough, Tether has maintained its 1:1 ratio with USD but with a growing market capitalisation. At the start of 2023, it had a market cap of $66.2B which rose to $79.7B by the end of the first quarter. At the time of writing, it has climbed to $81.7B.

This steady growth can be attributed to the continued mass adoption of digital currencies. As more people use crypto, more use USDT as a hedge against volatility.

In addition, the number of countries relying on stablecoins and viewing USDT as the ‘safer’ crypto has increased. This fuels growth and harbours mass adoption across the world.

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Top 5 advantages of using Tether

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Tether’s key feature is its stability and hence ability to eliminate volatility within the crypto sphere. It has maintained its $1 status over the years and aims to keep it consistent. You can instantly convert your money into Tether and it will retain its original value with no fees required.

One of the main reasons for its stability is the Bitcoin blockchain it was built on. The Bitcoin blockchain is known for its strong security and encryption technology, used to protect the details of any transaction that goes through its system. 

To expand its utility, Tether has now been launched in different blockchains as well.  Platforms you can trade Tether on have been expanded to various networks including Bitcoin, Bitcoin Cash, Tron, Binance Smart Chain, Matic, and more.

Every Tether purchase you make will always be equivalent to the fiat money you trade it for. There are no third-parties to add fees to your transactions, so you'll get back the same amount you deposited. You won’t have to worry about the coin's value changing either because it’ll roughly be the same over time due to its stability.

Tether keeps you updated about its value on their official website. It uses Proof of Reserve to show that USDT tokens are 100% backed up by the United States reserve and the company behind the coin conducts rigid KYC protocols.  

Since Tether operates on a blockchain network, it is heavily protected by cryptography guaranteeing locktight security. Blockchains are the safest place for your transactions due to their high-level security measures and protection against malicious activity. The coin can be safely stored in various digital wallets online.

Many countries face the issue of fluctuating fiat currencies and have turned to cryptocurrency as a solution. Using stablecoins can greatly impact a country’s economic growth due to its consistent value and P2P transactions. 

For example, due to the fluctuating value of USD, it’s hard to know when’s the right time to buy and invest in it. Tether protects your money from inflation and acts as a leverage for countries around the world to purchase a stable fiat value. 

How does Tether work?

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This is how Tether works: Tether tokens are built on three different layers: Bitcoin blockchain, Omni layer Protocol, and the Tether Limited Layer. These three layers create a smooth process for your fiat and crypto transactions.

 The process can be summarised in 5 steps:

  1. Deposit your fiat into a Tether Limited bank account.

  2. Once the funds are in, the circulation process begins, starting with the amount you deposited. For example, if you deposited 10 USD then 10 USDT will be issued to your account.

  3. You can now use your USDT to transfer money, exchange it or store it in your crypto wallet through a peer-to-peer platform.

  4. You can withdraw your USDT and convert it back to your preferred fiat currency. Once the process is complete, you can redeem USDT from your account.

  5. Tether Limited will destroy the USDT you claimed and convert it into the fiat you requested. 


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Getting started buying USDT

Buying, selling or exchanging USDT is quick and simple. You just need a crypto wallet and an exchange platform. You can use various cryptocurrency exchanges and wallets on the market today, but it’s best to create your account from the official Tether.to platform.

You can do this by following these steps:

  1. Sign up for an account on Tether.to.

  2. All account details are protected once you enter your 2-factor authentication via Google Authenticator or SMS.

  3. You can apply for an individual or corporate verification for your account.

  4. Choose any of the options to send funds, add funds or convert your USDT to any cryptocurrency available on the platform.

Tether Limited delivers a smooth experience for its users, so you can use your money without having to worry about red tape or technicalities. 

What can you buy with Tether?

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USDT can be used in everyday transactions. There are an ample number of online stores and physical markets that accept USDT as a payment method. Some of the industries currently accepting USDT include: 

  • Online shopping: Including stores such as pharmacies, jewellery stores, food establishments and more. The most common retail industry you can spend USDT is  clothing stores.

  • Service providers: Selected stores accept USDT as a mode of payment such as repair shops, car manufacturers and educational programs to name a few. 

  • Online Gaming: You can use USDT on selected online casinos like Bitcasino to play and pay for all your gaming needs. The benefits of using USDT on online casinos  or stablecoin gambling include fast transaction speeds, complete security and high stability.

Tether steadily grows as more stores accept it as a mode of payment. You can easily withdraw and add USD to your Tether funds and utilize the technology’s quick transaction times. Buy USDT and go shopping online like you would with a credit or debit card.

Start investing in Tether with these 5 platforms

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You can buy USDT on various crypto platforms. Sign up and convert your fiat money into USDT with the click of a button. You can use other crypto coins you have already or your credit card to begin the process.

Check out these 5 trusted platforms to get your own USDT:

  • Binance: It is the world’s leading cryptocurrency exchange where you can trade your preferred crypto in a matter of minutes. You can use a bank transfer or your credit card to buy and receive USDT.

  • Coinbase Exchange: It is one of the well-known and most liquid regulated exchanges. Ever since its inception in 2012, Coinbase makes it easy to buy, sell, and exchange various digital assets.

  • Kraken: It uses the Omni Protocol to offer USDT on its platform. You can swiftly transfer your funds to your Kraken account and trade for USDT immediately.

  • KuCoin: It has been operating since 2017 and it offers 700 cryptocurrency for users to buy, sell and trade. It is considered as one of the top exchanges because of how simple and safe the platform is. 

  • BitStamp: It is considered as one of the safest and cryptocurrency platforms. This is because it keeps 98% of its assets offline in cold crypto storage, which can protect your funds from hackers.


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The top 5 wallets to store your Tether

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After you find the perfect platform to use, you can keep all Tether coins in various wallets and access them quickly. Most wallets come in hardware, mobile or desktop versions.

Check out 5 wallets that will suit your needs and store your USDT:

  • MetaMask wallet: This is an Ethereum-based wallet you can add as an extension to your browser for convenient crypto transactions. You can use it to receive and store USDT tokens.

  • Tether wallet: This is USDT’s official wallet and a primary channel to convert your USDT directly from fiat money. Download it to your browser and/or mobile devices to access your coins wherever you are in the world for free. 

  • Ledger Nano X: The Ledger Nano X is a hardware wallet protected by a certified chip. You can install up to 100 applications and transfer over 1,500 crypto coins into this flash drive-shaped hardware wallet. 

  • Coinomi: Is a well-known mobile wallet for all types of USDT available for iOS and Android. Its features include private keys stored onto your phone and strong encryption security that protects your identity when making transactions. 

  • Omniwallet: Is a web wallet that grants full access to your private keys and allows you to easily buy and sell on an Ethereum blockchain. Bitcoin and other crypto coins can also be stored in this wallet. 

  • Binance wallet: Serves as a web or mobile wallet. Binance is one of the most used wallets mainly because all kinds of Tether are supported. 

Tether your funds for safe and fast transactions

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Currently, cryptocurrency prices are unpredictable and continue to fluctuate. It’s difficult to know when is the best time to convert your funds into fiat, like USD and others. With USDT, though, you won’t have to worry about any of these concerns because its value is consistent and you can exchange without extra fees to pay. 

Tether proves itself to be a reliable stablecoin and it serves as a viable alternative to using your fiat currency. Bitcasino gladly welcomes this coin as one of its payment methods to grant a quick, easy, and secure way for you to play your favourite games. 

Words by: Barbara Menorias


A brief guide on buying and investing in Tether


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