What is USDT?
In 2012, entrepreneur J.R. Willett conceived of a new form of crypto that could operate on its own layer of the existing Bitcoin blockchain, distinct from bitcoin. Tether was created on this secondary layer — first known as Mastercoin – as the technological foundation.
In July 2014, a group of entrepreneurs formed a startup called Realcoin. The company renamed itself to Tether Limited later that year and launched USDT. Unlike other digital currencies at the time, USDT used a platform for creating and trading digital assets on top of the Bitcoin blockchain (the Omni Layer protocol). This protocol also supported minting and burning Tether coins.
Eventually, due to popular demand by users, USD has migrated to other blockchains like Ethereum in order to increase stability.
The USDT is a type of cryptocurrency known as a stablecoin. Cryptocurrencies, like Bitcoin and Ethereum, are notorious for their volatility (i.e., price fluctuations). This unpredictability makes it tough for customers to shift money across borders without paying hefty costs or waiting lengthy periods of time. Stablecoins were developed to provide greater stability to the cryptocurrency market and prevent prices from fluctuating drastically from one day to the next.
When the price of a specific coin remains stable (because it is pegged to USDT), investors can use that coin pair as a more reliable medium of exchange and method of value storage, instead of just speculation (whose price may go up or down at any moment).
How to buy USDT?
If you decide that Tether holdings make sense for your financial goals, you can buy Tether in a mere three steps:
Choose Your Crypto Exchange.
Before you can buy Tether, you need to choose a cryptocurrency exchange. An exchange allows you to buy and sell cryptocurrencies. With Tether, you will be able use your U.S. dollar deposits to purchase Tether coins. However, it’s important to keep in mind that crypto exchanges can vary greatly in terms of complexity and fees charged, so it’s advisable to compare multiple exchanges before deciding on one particular platform for your needs (for example, Kraken, ChangeHero etc.)
Now that you’ve selected your exchange, it’s time to make your deposit. Although Tether is designed to be less volatile than cryptocurrencies like Bitcoin, there is still a risk that your investment could lose value.
To initiate a trade, simply create a “buy” order using Tether’s ticker symbol—USDT—and the dollar amount you want to purchase. Once the transaction has been processed, congrats! You are now the proud owner of some Tether currency.
Store Your Tether.
Crypto wallets that allow you to store your crypto offline are called Hardware Wallets. If you want to store Tether offline, you can use a hardware wallet such as Ledger or Prokey.
Paper Wallets are a type of cryptocurrency wallet that stores both a public and private key on paper, as well as two different QR codes. This storage method is often referred to as noncustodial cold storage.
Software Wallets: You can download software onto your computer or mobile device to store your crypto. For example, Exodus is a mobile wallet where you can store your USDT.
Several exchanges offer USDT, and they also offer customers a built-in wallet for storing their USDT holdings. Binance and Kraken are two such companies that offer wallets for their customers’ use.
Things to consider before buying USDT?
USDT is a cryptocurrency that is backed by the US dollar and thus has a stable value.
It is a USD-backed stable coin. As a result, each USDT token is worth precisely one dollar, and the value of the token will not fluctuate. This makes USDT an ideal currency for businesses and individuals who need to send or receive payments in US dollars but do not want to deal with cryptocurrency market volatility. It may be traded on cryptocurrency exchanges like other cryptocurrencies.
USDT enables you to make online purchases.
USDT is a digital currency that can be used to make purchases on the internet. It differs from regular currencies in that it is resistant to inflation and other economic fluctuations. USDT is also backed by the US dollar, making it a dependable way to pay for goods and services online. Although USD T isn’t yet well-known, it is gaining popularity as an alternative to conventional money.
Available on OTC shops.
USDT can be bought and sold on several different OTC platforms. The most popular one is Coinsfera, which has locations in Dubai, Turkey, and multiple other countries. It’s crucial to compare the fees and features of each platform before deciding where to trade your USDT.
Some platforms may have lower costs, but they may not provide acceptable customer service. Others might provide a higher level of customer service but charge higher fees. In the end, it is up to the trader to decide which exchange is best for their needs.
The best place to buy USDT is from a BTC store.
The USDT token is available for purchase from a variety of physical BTC vendors all around the world. On average, the transaction takes roughly 5 minutes to complete. For future use, store USDT in a digital or hard wallet. Unlike other cryptocurrencies, USDT has no color and can only be utilized once. Its primary goal is to act as a real-world commodities and service payment vehicle for tangible products and services.
Always keep your USDT in a safe place.
Like any other digital asset, you must store your USDT carefully to ensure its safety. The cryptocurrency should be stored in a secure wallet where only you have access to the private keys. You should also back up your wallet in case it’s lost or damaged. By taking these precautions, you can help guarantee that your USDT will be available and secure when needed.
Tips for trading USDT?
A small investment is recommended for those just starting out.
Only trade with funds that you are willing to lose. There’s a lot of chance that you will lose if you’re new to trading cryptocurrencies. However, with practice and time, you will eventually profit. As much experience as possible is crucial; there is no substitute for it. Don’t give up hope. In the end, you’ll have your strategy figured out and be a seasoned cryptocurrency trader.
Don’t Get Involved in a Crowdsale (ICO).
When a new cryptocurrency is about to be released, sometimes the creators will do a crowdsale. This means that people can buy the currency at a cheaper price for usually one or two days. The idea behind this is that it will create more trade volume from the ico market start and also lead to significant gains later on as investors hold onto their ICO tokens aka currencies.
Many coins, on the other hand, turned out to be a fraud, either disappearing after a day or two of trade or fleeing with your Bitcoin earnings. As a result, when a new project offers crowd sales, be wary.
Keep Your Virtual Currency in Hardware Wallets
Long-term security for your cryptocurrency is always best placed in a hardware wallet. This is recommended by Crypto professionals to avoid the worry of losing them through hacks or accidentally sending them to the wrong person. The two most trusted and recommended hardware wallets are Trezor and Ledger Nano S.
USDT can be bought from physical BTC stores all over the world. You can use USDT to store value or purchase goods and services, but you must first convert it to another cryptocurrency like BTC or ETH. Always store your USDT in a safe place – preferably in a secure wallet with a backup. To trade USDT, beginners should start with a minimal investment and only trade with funds they can afford to lose. When storing your coins, it is best to use a hardware wallet for security reasons.
Lastly, avoid trading crypto as your main source of income. Doing so may lead to emotional decisions that are not wise financially.