BCGAME - Free 5BTC Daily Bonus!Tether (USDT) is one of the most popular stablecoins which exists. It is designed to maintain a one-to-one value with the US dollar. The currency exists on many different blockchains and has seen increasing trading volumes and improved liquidity in recent years.
Like other stablecoins, the USDT is useful for trading cryptocurrencies as it allows traders to avoid the market volatility that is common to BTC and other crypto assets. Using stablecoins also removes the extra costs and delays in converting between crypto and fiat currencies.
Tether is a fundamental part of the cryptocurrency ecosystem. As of December 2020, Tether is ranked as the fourth largest cryptocurrency in the world, with a market capitalization of nearly $20 billion, behind only Bitcoin, Ethereum and XRP. In addition, it is usually the currency with the highest daily trading volume, even surpassing Bitcoin.
But what is Tether and how can it be useful to you?
In this article, we will discuss:
What is Tether (USDT)?
Tether (USDT) is the world's first stablecoin (a cryptocurrency that mimics the value of a fiat currency). It was originally launched in 2014 under the name Realcoin by Bitcoin investor Brock Pierce, businessman Reeve Collins and software developer Craig Sellers.
USDT was originally issued on the bitcoin protocol through the Omni Layer, but has since migrated to other blockchains as well. In fact, as you can see from the chart below, most of its supply exists on Ethereum as an ERC-20 token. It is also issued on several other blockchains, including TRON, EOS, Algorand, Solana and the OMG network.
Tether has gone through successes and controversies - much like many of the most important cryptocurrencies in the world.
Especially in its early days, the USDT price has been somewhat volatile, reaching $ 1,2 at some point. The currency has experienced much less volatility since the beginning of 2019, however. This is probably due to a steady increase in its turnover and the general advance of the cryptocurrency markets.
How does Tether (USDT) work?
The usefulness of Stablecoins lies in their relative stability, as opposed to more traditional cryptographic assets. As a stablecoin, the appeal of the Tether is in its attachment or attachment to fiat currency. The USDT is said to have been originally indexed exactly to the USD, with $ 1 USD held for every USDT in circulation.
According to the original Tether white paper:
Each tether unit issued in circulation is backed by a one-to-one ratio (that is, one Tether USDT equals one US dollar) by the corresponding fiat currency unit held in deposit by Hong Kong-based Tether Limited.
Although Tether's original individual asset was USD, it was transformed to include the maintenance of collateral with other real-world cash equivalents, assets and loan receivables.
As you can see on the USDT / USD chart below, the currency (usually) is traded at a stable one-to-one rate with the USD. However, significant market events can affect its price.
Why Tether (USDT) matters
Tether bridges the gap between cryptographic and fiat currencies. It presents an easy way for investors to get a one-to-one trade for the dollar, without the innate volatility of other cryptocurrencies.
By providing this stability, investors can maintain a digital asset similar to a fiat currency, but with the ease of trading other currencies in the crypto markets. The main features of Tether make it a popular currency - although it is also not immune to risks.
Main features
. 1: 1 ratio (USD to USDT)
. Stability (as far as the dollar can be considered stable)
. Available in different blockchains
. Different use cases compared to traditional cryptocurrencies
Tether Use Cases (USDT)
Quick access to market stability
If the Bitcoin price or other crypto assets is falling rapidly, you can quickly trade USDT instead of trying to cash out.
Easily move funds between exchanges
With Tether, you can move your funds between exchanges very quickly. This can also be useful for arbitrage trading with other currencies.
Trade only in cryptographic exchanges
Some exchanges do not have funds for fiduciary deposit and withdrawal, but allow for USDT trading. By obtaining Tether first, you can trade on these exchanges without worrying about market volatility by placing your main trading funds in BTC (or other cryptocurrencies).
Forex style trading
Since the USDT is indexed to the USD, you can trade in Forex style by exchanging local (non-US) currencies for USDT when its value is high against the USD. You can then withdraw in local currencies when the local currency falls or exchange for other assets.
How to store Tether (USDT)
In addition to Binance and other cryptocurrency exchanges, you can store your USDT in a variety of crypto wallets. These include web and mobile wallets (like Trust Wallet) or cold storage hardware wallets (like Ledger) through third-party software wallets.
Since USDT is issued on a number of different blockchains, you will need to ensure that you are transferring it to and from the same network.
For example, if you go to the Binance USDT withdrawal page, you will find five different network options to transfer to: Binance Chain (BEP2), Binance Smart Chain (BEP20), Ethereum (ERC20), Tether (OMNI) and Tron (TRC20 ).
USDT transfer network options in Binance.
So be careful. If you use the wrong network, you could lose your funds. For example, if you try to send Omni USDT to an ERC-20 USDT address, your transfer is likely to be lost.
Please note that as of December 2020, ERC-20 USDT is the only type supported by Ledger. This means that USDT running on blockchain Bitcoin (Omni Layer) is not available for transfer to Ledger hardware wallets.
Other Tether cryptocurrencies
In addition to USDT, Tether also has other stablecoins:
EURT: a Tether currency linked to the euro
CNHT: a Chinese currency linked to the Yuan
XAUT: a gold-indexed Tether physical currency
You can see how much of each coin is circulating across various blockchains on Tether's Transparency page.
Tether Cryptocurrency (USDT) Where to Buy
Buying Tether (USDT) is simple and can be done on multiple platforms.
Top exchanges to buy USDT:
- Binance
One of the largest exchanges in the world, it offers a user-friendly interface. It can be easily accessed through the website and offers several payment options. - Coinbase
Popular among beginners, it allows you to buy cryptocurrencies with a credit card and bank transfer. The process is safe and fast. - Bitcoin Market
Famous in Brazil, it offers the purchase of USDT with reais, making it easier for those who do not have other cryptocurrencies.
Available payment methods:
- Credit/Debit Card
Many websites accept cards for instant purchases. - Wire Transfer
A common option, although it may take longer to process. - Other Cryptocurrencies
Some platforms allow users to exchange other digital currencies for USDT.
Before purchasing, it’s important to research transaction fees and ensure that the exchange you choose is trustworthy. Checking the platform’s security and other user reviews can help you make a decision.
How to Buy Tether Coin (USDT)
Buying Tether (USDT) is a simple process, especially on the Binance platform.
Step by step guide to purchasing Tether (USDT):
- Create an account: The first step is to go to the Binance website and create an account. You will need to provide an email address and create a password.
- Verify identity: After registration, the user must complete the identity verification process to ensure security and compliance.
- Deposit funds: The user can deposit Brazilian real (BRL) or other cryptocurrencies to exchange for USDT. Binance offers different deposit options, such as bank transfers or deposits via credit card.
- Buy USDT: Once the funds are in the account, the user can go to the market section and choose the option to buy USDT. He must enter the desired amount and confirm the transaction.
- Store USDT: After purchasing, Tether can be stored in your Binance account or transferred to a personal wallet for added security.
Important Tips:
- Check rates: Be aware of trading and deposit fees on the platform.
- Keep safe: Use two-step authentication to protect your account.
These steps allow anyone to acquire Tether efficiently and securely.
Conclusion
Stablecoins have introduced a lot of convenience into the world of crypto commerce, as they reduce the need for traders to convert multiple times between fiat and crypto currencies. As such, USDT is a useful asset to have on hand for crypto trading.
Although there have been several questions about the validity of reserves, volumes in recent years indicate that there is faith in the value of Tether as a stable currency. In addition to USDT, you can also choose to use other stablecoins, such as BUSD, USDC, TUSD and PAX.
FAQ
Is Tether Cryptocurrency Worth It?
Many users find Tether an attractive option due to its stability. Because it is pegged to fiat currencies, USDT can help minimize the volatility that is common in the cryptocurrency market.
Will Tether Cryptocurrency Rise?
Predicting the value of USDT can be challenging. The cryptocurrency is usually pegged to the US dollar, so its appreciation does not follow the typical fluctuations of other cryptos.
Tether (USDT) Cryptocurrency Price Prediction 2025
For 2025, the high estimate is $1 and the low estimate is $1,000. The average price of USDT is likely to hover around the $1,000 mark. Despite these estimates, the price of USDT will be close to $1 by the end of 2025. The USDT price prediction in 2025 will depend on medium- and long-term market conditions, price history, and other factors.
Tether (USDT) Cryptocurrency Price Prediction 2029
By the year 2029, as per our forecast, USDT could reach a high of $3. However, it could also fall to a low of $3,000. The average price in 2029 is expected to remain around the $3,000 mark. The USDT price prediction for 2029 is a long-term prognosis that depends on the market conditions and the repercussions of the political activities of the previous year.
Is Tether a good investment?
Tether may not be seen as a traditional investment. It is primarily used as a tool to facilitate transactions and preserve value within the cryptocurrency market.
What is the future of USDT coin?
The future of USDT may depend on regulation and the cryptocurrency market. Continued adoption by trading platforms indicates that Tether is likely to maintain its relevance.
Is Tether Coin safe?
The security of USDT is tied to its backing in dollar reserves. While it is widely used, it is important that users do their own research on the security of the exchanges they use.
How to store Tether Crypto securely?
Users should consider wallets that offer robust security for storing USDT. There are both cold and hot wallet options, each with their own levels of security and convenience.
What are the risks of investing in Tether?
Like any asset, investing in Tether involves risks. Issues related to reserve transparency and industry regulation should be monitored by those wishing to invest.
