How to Buy Tether
Converter Tether to US Dollar
Tether (USDT) is the most popular stablecoin in the world. The USDT rate is pegged to the US dollar at a ratio of ≈ 1:1. Due to this, USDT tokens are less volatile than Bitcoin, Ethereum and other classic cryptocurrencies. Many people use them as a more reliable method of payment in the cryptocurrency economy and investments.
In the new review, we will tell you what Tether is and how to buy it in the 2023 year.
What is Tether
Stablecoins unite the world of cryptocurrencies and the world of traditional money. And in particular, Tether is a digital analogue of USD.
Using of stablecoins helps to reduce the level of volatility. By trading Tether, the trader reduces the risk of loss too (due to the hard peg of the coin to the real dollar).
Tether was launched using the Bitcoin blockchain (via the Omni Layer). Gradually the stablecoin received implementation on other protocols. USDT tokens are issued on the Ethereum (ERC-20 protocol) and TRON (TRC-20 protocol) blockchains.
Another reason for its popularity is high liquidity. Each stablecoin is backed by a more common tangible asset (US dollar in the case of Tether), so it is in demand among buyers. You can exchange USDT for fiat money at any time.
Some words regarding the securing of Tether:
- Since its launch in 2014, Tether Limited has maintained that all USDT tokens are 100% backed by US dollars;
- February 27, 2019, the company changed its USDT backing policy: each token is backed by “reserves, which include currency and cash equivalents, as well as other assets and upcoming proceeds from loans that Tether has provided to third parties”;
- In May 2019, Stuart Hogner, General Counsel confirmed that only 74% of USDT are backed by fiat reserves.
The best place to buy Tether
You can buy Tether on different platforms: on an exchange and online exchanging services, by national or international banking systems.
The most profitable and reliable way is to buy USDT coins on the exchange. The exchange is generally regulated, provides high liquidity of assets, as well as great diversity payment methods (card, bank transfer, P2P exchange, etc.). You can also purchase a Tether on the exchange for dollars, euros and other fiat money.
You can also buy Tether on the popular trading platform Binance. Below we will consider how the process of buying on the exchange takes place.
Instructions for buying Tether
Step by step instructions on how to buy Tether.
Determine your level of risk
Even though stablecoins provide normal volatility, investing in digital currencies always carries a high level of risk. To lower them, follow the basic rules of investing:
- Don’t invest all your money in one asset: distribute capital among different assets and asset classes;
- Don’t invest your last money as losing it will lead to bankruptcy;
- Don’t buy cryptocurrencies with money you can’t afford to lose: there is no guarantee that you will earn anything. You are responsible for all investment decisions.
Choose a cryptocurrency exchange
Cryptocurrency exchange is the most profitable and reliable way to buy Tether. But not all exchanges are equally good.
Trusted crypto exchanges to buy Tether in 2023:
Creating of an account
Let’s consider how to open a new account, using the top crypto exchange Binance, as example.
Registration on Binance consists of the following steps:
- On the official website of the exchange in the upper right corner, click Register;
- In a new window, you will need to confirm the country of residence: select one from the list and click Confirm;
- Select Create Personal Account at the next step;
- Fill out the registration form: specify the current email and create a strong password → Next;
- The last step of registration is email verification.
Besides Binance, you can use any other exchange to buy USDT. Rating of the best sites to work in 2023 available on our website.
Top up the account
For example, let’s say we want to fund our account with Ether and then buy USDt with ETH.
- In your personal account, select the Wallet tab → Fiat and Spot;
- Pick up Ethereum among available cryptocurrencies (or any other coin that you want to transfer to the exchange) and click Deposit;
- Select the network for transfer;
- The system will give an address. You should insert it into the wallet from which we transfer funds, and send ethers.
Buy Tether (USDT)
With ETH that we previously deposited in our account on the exchange, we can buy USDT on the Binance spot market.
- Select Trade → Spot in your personal account;
- Specify the currency pair ETH/USDT;
- Under the chart for the selected pair, fill out the form Sell ETH;
- Select order type, and depending on this, enter data for buying USDT for ETH;
- Click Sell ETH.
How to sell Tether
To sell USDT and receive ETH, we perform the reverse action. Fill out the Sell ETH form, specifying the order type and entering data for the exchange.
Where to keep USDT
Before answering this question, you need to understand what you plan to do with the purchased tokens. If you are an active trader, it is more convenient to use the hot type of storage connected to the Internet. You will be able to get quick access to assets, in other words, they are always at hand. For this purpose you can try Trust Wallet or Blockchain.com, for example.
In terms of security, the cold wallet is more reliable: the user’s private keys are stored offline, without an Internet connection, so they cannot be stolen by scammers. So as a wallet for only storage (not for trading), you may give preference to more reliable “cold” storages. For example, Ledger Nano S.
How to withdraw Tether to my wallet?
Any crypto wallet that supports this cryptocurrency is suitable for storing Tether. Trusted hot storage is Trust Wallet, the official wallet of Binance exchange. This service allows you not only to store USDT coins, but also to send, receive and exchange assets.
For using Trus the first thing to do is to install the wallet on your mobile device: download Trust Wallet for Android or iOS. After the app is downloaded and installed:
- Go into it and tap Receive;
- From the list of supported currencies, select Tether;
- By tapping on the coin, we get to the page where we get the address for receiving USDT;
- Copy the address or scan the QR code;
- To transfer coins from the exchange to the wallet specify this address in the interface of the exchange and withdraw USDT (do not forget to correctly specify the network for transfer).