Since the first mention of cryptocurrency in 2011, there has been a need for a stable equivalent of fiat currency. Therefore, in 2014, Tether LTD launched its own crypto, whose stablecoin USDT fully corresponds to 1 US dollar and is backed by the reserves of the company’s assets. This means that no matter how stormy the cryptocurrency markets are, you can always buy 1 USDT for 1 USD.
Thus, such questions as: «How does it work? What can it be used for? How and where to buy Tether or USDT?» arise immediately. We will try to answer them in order and detail.
How does Tether work?
As we already said, each Tether token is backed by real currency and used to transfer it to the blockchain and vice versa. Thereby, if you get paid in Tether or USDT, you can transfer it into your regular bank account at a «one-to-one» rate.
The same is true for the currency transfer to other people or in the case of international transactions. This significantly reduces the cost and speeds up the process, in comparison with standard banking operations, and sometimes it is the only possible option for transferring funds.
What can USDT be used for?
United States Dollar Tether or USDT in short, is the very first stablecoin. The main advantage of USDT is that it is always equal to its fiat counterpart USD.
Therefore, most often USDT is used for:
- Profit fixation when trading other cryptocurrencies;
- Local or international transfers, when the anonymity and stability of the exchange rate of the transferred cryptocurrency are important.
How to buy USDT online?
Since Tether and its token USDT are perhaps the most stable representatives of the cryptocurrency world, a lot of people prefer to start their digital financial activities with them. Therefore, the question «what is the best and safest way to buy USDT?» arises at once.
To purchase Tether or USDT online, you need to follow these step-by-step instructions:
- Grapherex. One of the many functions of the financial portal www.graferex.com is a secure multi-currency e-wallet. With it, you can perform both traditional financial transactions, such as working with a bank account, SWIFT, SEPA and Visa/Mastercard debit cards, as well as trading in various cryptocurrencies, including USDT on the Ethereum blockchain. It also offers analytics data based on both current events and crypto market forecasts. The security system of this wallet meets the highest modern standards. By protecting your data from phishing, this system successfully fight with fraud and financial crime, detects money laundering and terrorist financing attempts, as well as links to companies under sanctions.
Choose the right cryptocurrency exchange
USDT is a fairly popular type of crypto, so almost all online trading platforms offer their services for its sale. When choosing, you need to consider the reliability of such a site, its presence in your region and the availability of exactly the tokens you need. It could be Binance, Kraken, Bitfinex and many others.
Register on such an exchange
If you have not yet had an account on the exchanges and did not buy USDT or other cryptocurrencies online, you will most likely be asked to go through the «Know Your Customer» procedure, in addition to the standard registration. Under this procedure, you may be asked to provide copies of documents such as an ID card, a passport or in some cases additional papers like a utility bill. These are necessary security measures taken to combat money laundering and online scamming.
Top up your account
There are several ways to perform this step, each has its own nuances.
- Bank transfer. This is the easiest and cheapest way. It involves making a transaction with a minimum commission or no commission at all. However, this process may take several business days.
- Using a credit or debit card. This option, on the contrary, is quite fast, but leads to additional expenses. In some cases, the fee for such a transaction can reach up to 20%.
- Buying with other cryptocurrencies. Most crypto exchanges allow you to trade using various cryptocurrencies. In addition, the majority of them do not take commissions for these operations. This is indeed the fastest and least expensive way, but it requires you to have some experience in cryptocurrencies trading.
Since this digital asset is equal to the US Dollar, you can consider the process as buying USD for your national currency. They are completely identical.
Withdraw USDT to your e-wallet
Due to its relative stability, many traders are considering this digital currency in the long-term store. Because Tether uses several different blockchains, there is no single wallet for all varieties of USDT. Therefore, you need to clearly define which blockchain your USDT should be based on. Guided by this, as well as for security reasons, it is worth choosing a wallet.
You need to study this issue carefully and choose the method of refilling your account that is convenient for you personally.
The security of Tether (USDT)
Tether LTD adheres to modern security and reliability standards of the highest level:
- Each released Tether and its tokens are 100% covered by the reserves of Tether LTD and its customers;
- New tokens are issued only when they are requested and purchased by clients who have passed the «Know Your Customer» security system verification process;
- The quarterly audit report and the company’s consolidated statement of reserves are publicly available on the official website. In addition, in the «Transparency» section you will find detailed daily updated information on the status of the company’s reserves;
- Tether LTD is actively cooperating with law enforcement and regulatory authorities in the fight against intruders and scammers;
- The company is the founder of the «Blockchain Alliance» resource, created specifically to combat crime in the blockchain.
As for the reliability of Tether itself and its tokens: at the moment they are the most stable of all the cryptocurrencies on the market and could be a fairly successful long-term investment. And yet, you will have to decide to buy USDT or any other cryptocurrency on your own, carefully weighing all the pros and cons.
USDT Wallet (Where to store USDT?)
Initially, in 2014, Tether was launched based on the Bitcoin blockchain. However, during 2015-2018, Tether LTD released it on the Ethereum and Tron blockchains.
Since multiple tokens cannot be stored in the same wallet at the same time, you first need to figure out exactly which Tether’s token you own. This is not difficult to do, as, for example, Bitcoin token addresses start with 1,3 or bc1, and Ethereum with «Ox».
So, let’s look at several wallet options for storing different types of USDT.
- Exodus. If you are using USDT on the Ethereum blockchain, then this eWallet might be one of the best options. It is also great for beginners, as it has an intuitive design and user-friendly functionality. «Exodus» also allows you to synchronize your wallet on your desktop and mobile device. In addition, in case of any questions, you have the opportunity to contact the round-the-clock customer support service.
- Ledger Nano S. This is a hardware wallet designed to store ERC-20 – USDT on the Ethereum blockchain. The main advantage of this store is the high level of security, while the inconvenience is the price and lack of mobility. It is more suitable for the long-term stationary storage of USDT.
- Binance. This is not only one of the best cryptocurrency exchanges, but also one of the most popular USDT storages. However, along with a convenient design, a multi-level security system, a multilingual menu and other advantages, Binance has some restrictions on the countries of use, and it is also a custodial wallet.
In order to decide which wallet should be used to store USDT, you have to carefully study the offer market and choose the option that best meets your requirements.