What is Tether (USDT) and how to buy?

What is Tether (USDT) and how to buy?

What is Cryptocurrency?

Cryptocurrency is a type of digital asset. If you are new to the area of digital assets then please read my comprehensive guide on Cryptocurrency before doing any investment on any Cryptocurrency like Tether (USDT).

What is Tether (USDT)?

Tether is a Cryptocurrency. It was issued on the Bitcoin blockchian but later transitioned to Litecoin blockchain. Tether Limited Company claim that each unit of Tether is backed by one United States dollar which is held in reserve by them and may be redeemed on Tether platform. The aim to create Tether was to facilitate transaction at fixed rate avoiding government intervention and regulation. The exchange rate of 1 Tether is 1 USD which can be used as medium to exchange and it avoid loosing money at the time of converting USD to other currency and was developed to use as means to purchase other cryptocurrencies without losing money in currency conversion. Tether tokens are issued by Tether Limited incorporated in Hong Kong with offices in the United States. All the major Cryptocurrency exchanges support Tether and has close connection with Bitfinex. There is lots of controversy against Tether. The exact USD reserve has not yet audited and may not be in same ratio to number of released USDT token. Tether is not a legal tender currency and there is no guarantees against losses. Its use violates much regulatory compliance.

Who can buy Tether (USDT)?

Tether (USDT) is an Altcoin which is not widely available to purchase directly using government-issued currency like US Dollar, Euro or GBP. But if you have either Bitcoin or other well-established Cryptocurrency likes Ethereum then you can exchange.

How and where to buy Tether (USDT)?

Binance (Best for USA and International purchase) or Bitfinex (Best only for Non-USA) are the best places to buy Tether (USDT). However, you can’t purchase Tether (USDT) directly by paying in Dollar or Euro. First you need to buy other Cryptocurrencies like bitcoin, Litecoin, Ethereum somewhere (maybe from Coinbase which is the most popular and trusted worldwide) then you need to transfer that to Binance balance (which is a very simple process and both sites will give you the respective currency address to get the currency) and subsequently you can buy Tether (USDT) with that balance. In other words, this is just the exchange and not the actual buying with dollars. This is also called as trading. On Binance, all trading is done with BTC, ETH, BNB or USDT. If you have any Altcoin you can transfer it to Binance balance and then you need to purchase one of these four currencies at market price first to exchange it for other Altcoins like Tether (USDT).

Please read another article to know more about other reputed Cryptocurrency exchanges apart from above mentioned Coinbase and Binance. Although, the step involving Coinbase and Binance is the best way to purchase digital asset as regulation may restrict you to purchase here. Exchanges listed here are also the potential place to invest in Cryptocurrency. Most of the exchanges are regulated and they have the license to operate in particular country. Some exchanges have permission to operate in globally while some are restricted like Bitfinex doesn’t allow US residents to use their platform. When you purchase cryptocurrency then exchanges which offer it in your country’s currency then that is the best way to avoid fiat currency conversion charges. Some exchanges use only USD while some offer purchase using USD, Euro, GBP, CNY, CAD, JPY, INR and many more fiat currencies. Some exchanges are used only to change one cryptocurrency to another.  Above link will give you answer to explore other reputed cryptocurrency exchanges and subsequently you can decide exchange of your choice based on your country of origin and fiat currency.

Where to save my digital assets after making the purchase?

Purchasing cryptocurrency is not the only thing which one should consider if somebody wants to venture into cryptocurrency investment and trading. Keeping your digital assets is one of the most important things. There are four places where purchased cryptocurrency can be stored – online wallet (internet or mobile app), desktop software based wallet, hardware wallet and paper wallet. All online website based wallet or software installed on any computer connected to the internet are prone to hacking which ultimately may lead to loss of your digital assets. Without any doubt, the paper wallet is the safest way to store your digital assets but it is not the most convenient way. That’s why paper wallet is not most popular among people. However, offline hardware wallets are becoming very popular these days as the alternative to paper wallet which also gives the convenience of using it when required. Here is the list of all good hardware wallets to store your Cryptocurrency. Briefly, you can use Ledger wallet, TREZOR and KeepKey and Paxful wallet to store your digital assets. Please follow the link to read more about these hardware wallets.

How can I make the profit out of my purchase (long-term investment or can earn daily)?

Most people prefer to store cryptocurrency for a long time and sell when the price is high. This can be a good strategy to earn from your digital assets. However, there are alternate ways to make regular daily income using Cryptocurrency. One can use the two ways you can make money with Cryptocurrency. First is a quick way and another is slow but will give you long-term returns. I have explained both ways to make money daily using cryptocurrency in another article. Briefly, you can make money using Cryptocurrency trading and affiliate programs.

Can I earn some free Cryptocurrency instead of buying it?

Purchasing cryptocurrency is not the only way to have these digital assets. There are alternative ways to earn these free. Different ways to earn free cryptocurrency are explained in another post.

Financial potential of Tether (USDT)

Tether (USDT) is basically meant to avoid currency conversion charge when using USD. So its price is close to 1 USD. It is mainly made to be used to purchase other Cryptocurrencies. There are many legal issues associated with USDT and future is not very clear.

Caution

I am not the Cryptocurrency expert and you should take extreme precaution before purchasing any such currency.

Are there any other Altcoins with the potential to give big returns?

Please follow the link to see the list of other Altcoins currently being sold at Binance . You can also learn more about those Altcoins.