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How to buy Tether online
This guide explains everything you need to know about Tether. We explain how to buy USDT coin and how it works, the future investment outlook for the project,
Compare where to buy Tether, and open an account
If you are already familiar with the cryptocurrency, you may be wondering where to buy Tether online. If this is the case, click one of the links in the table below and sign up to one of our recommended brokers. Otherwise, keep scrolling through this page for more information.
What is Tether?
Tether, or USDT, is a stablecoin: a cryptocurrency that is tied to the value of an underlying asset. It was originally tied to the value of the USD, but in March 2018, Tether announced that its value was also backed by loans to affiliate companies, rendering it a hybrid stablecoin. Consequently, there are small differences between the value of Tether and the USD. USDT is now the largest stablecoin by market cap.
Many cryptocurrencies exist, such as Bitcoin and Ethereum, but their value is volatile because they are not pegged to the value of an asset. Because of these fluctuations, they struggle to replace fiat money for casual, everyday transactions. For example, regular consumers could go to a restaurant, and by the time they come to pay, the price of their meal could be completely different. This is known as slippage and also applies to online transactions. Tether offers a useful, stable alternative.
Tether was initially called Realcoin, but in 2014, it was rebranded as Tether before trading recommenced in 2015.
How does Tether work?
Tether ties itself to the value of the USD and loans to affiliate companies by holding reserves of fiat currency equivalent in value to the Tether in circulation. Because this currency is locked away from the economy, Tether is free to allocate its value to the digitally-available USDT. This means that users can easily transfer real cash into digital cash.
The company is a trusted third-party holder of this money and is able to achieve this by capitalising on the security advantages of encryption via cryptocurrency. Moreover, the complexity that could arise from having to audit both fiat and digital currencies is reduced by Tether’s simple process of implementation that is enabled by something called the Omni protocol.
Through this combination of simple processes, Tether is able to perform as a strong and trustworthy digital stablecoin, though there are question marks against its claims of decentralisation. This is because one company (Tether) owns, mints, and manages the entire USDT supply, meaning it isn’t democratic or entirely transparent.
How to buy Tether online – a step-by-step guide
Step 1. Find an exchange
We feel the best place to buy USDT tokens is on a crypto exchange with low fees and a good track record of reliability. You can select a service from the top of this page, or you can choose one of the below options to get involved now:
- Binance: As one of the leading crypto exchanges, Binance offers access to over 100 cryptocurrencies. The platform has more trading volume than any other exchange. Sign up for Binance today >
- Bittrex: We are big fans of Bittrex’s user-friendly, intuitive interface, and it is great for beginners. The platform supports a wide range of cryptocurrencies, including USDT. Join Bittrex now >
Step 2. Sign up and fund your account
Before you start executing transactions, you need to sign up, set up your account and fund it. Signing up is an easy process that usually involves an ID verification check. Keep a copy of your photo ID to hand in case you need to provide it. You can fund your account with fiat currencies like GBP, USD and EUR, or a major cryptocurrency like BTC.
Step 3. Purchase
Once your account is good to go, decide how to want to fund your transaction. If you plan on using a fiat currency like GBP, go to your exchange of choice and find the USDT/GBP pair. If your account is being funded with Bitcoin, look for the USDT/BTC pair. Enter the quantity of Tether you wish to invest in, check to see if you are happy with the exchange rate and execute your transaction.
Step 4. (Optional) Get a suitable wallet
If you are going to be holding your USDT for a long period of time, you should consider opening a crypto wallet. These can be in online or hardware form, and they are a means of storing your crypto funds securely. Whilst most exchanges allow you to store your tokens in your exchange account, a crypto wallet will give you added peace of mind. Below, we have listed 2 of the best wallets for storing Tether.
- Trezor: This is one of the top crypto hardware wallets. Hardware wallets give you the ultimate peace of mind because the contents of them can’t be stolen via an online attack. Trezor wallets are good options if you are considering where to store Tether. Sign up with Trezor today >
- Freewallet: Freewallet is one of the top online crypto wallets. You can store more than 100 different cryptos with Freewallet, including USDT. Open a Freewallet today and start storing Tether securely >
How to trade Tether – a step-by-step guide
Step 1. Find a broker
If your plan is to trade USDT for a rapid profit, you need to open and close positions quickly and assertively, and that’s where brokers come in. Online brokers let you conduct this activity easily and reliably. So, if you want to trade Tether, check out one of the top crypto exchanges like Plus500 or eToro. These platforms have excellent reputations and are great places to get started.
Step 2. Deposit money
Fund your broker account by depositing fiat money like GBP, EUR and USD. Usually, you can trade directly with these funds, but make sure you check to see if there are any more terms and conditions before you get started; you might even be entitled to some extra money as a form of deposit match.
Step 3. Decide how you’d like to trade
Your trading success depends on your strategy. Trading relies on technical analysis and technical indicators rather than the fundamentals of the asset you are investing in. If you can spot trends as they develop and be decisive, this can result in meaningful rewards. Make sure you form a comprehensive trading strategy that mitigates risk before investing.
Step 4. Start trading
The majority of brokers offer demo accounts. You can use these to trade virtual funds as if you are involved in the real market but with no risk to your capital. This is a great way to learn how financial markets work before jumping in with both feet.
If you like a coin and want to trade it, there are two paths you can take: backing it to go up (going long), or backing it to fall in value (going short/shorting). This is called position trading, and it is important you know where you stand before making a trade.
For traders with a little more experience, you can use leverage to make bigger trades with less up-front capital. However, if you don’t make a good trading decision, this equally magnifies your losses, so remain cautious.
Still undecided?
If you still aren’t sure about Tether as an investment opportunity, don’t stress. No investment decision should be rushed into. Take your time to process the information you have just read. Below, you can read the pros and cons of Tether as a cryptocurrency.
Pros
- The leading stablecoin with a first-mover advantage
- Great way of parking investments during downtrends
- Very secure asset
- Adopted by nearly every crypto wallet and exchange
- Allows hassle-free conversion from fiat money to crypto
Cons
If you want some more information before you make your mind up, read the 3 questions below to help you decide if you want to invest in Tether.
1. Is now a good time to buy Tether?
The outlook for USDT largely depends on the performance of the USD. If you simply want to park your investments or you are going long on the value of the USD, holding Tether is usually a good investment. As the price of the USD increases relative to other currencies, the value of Tether will increase too. While cryptocurrency gradually moves towards mainstream adoption, and as the largest stablecoin, USDT is primed to become a key part of everyday transactions.
If you are a short-term trader, there are more lucrative coins to trade than stablecoins like Tether, but it is a great option to hedge your portfolio and is an alternative way of forex trading the USD.
As global market conditions become more volatile, an increased number of Tether trading opportunities will present themselves. If you believe in the long-term value proposition of Tether, focus on the fundamentals of USDT and the American economic system. Regardless of how you choose to get involved, make sure you keep up-to-date with the price of USDT and the latest analysis about Tether:
2. What problem does Tether solve, and what are the coin’s investment prospects?
Tether addresses the issue of volatility that prevents cryptocurrencies from becoming usable for everyday purchases. Many platforms offer payment cards that can use crypto for normal purchases, such as Swipe’s crypto debit card, but their transaction fees are high. by contrast, Tether allows users to easily transfer real cash into digital cash with no fees (other than broker trading fees); think of it as a digital dollar replacement.
If you feel the future value of the USD will rise, or if you simply want a means of parking your investments to protect them from centralised market volatility, USDT is a coin with strong investment prospects, However, make sure you realise that as a stablecoin, Tether is not something you should be investing in with the hope of big rewards. That can only happen if the USD shoots up in price.
Make sure that you do plenty of research before you invest. To read the latest news concerning Tether and its value, click one of the links below to read a news article:
Japan’s FSA aims to force stablecoin issuers to register as banks
Ava Labs’ president says most crypto firms want sensible regulation
CFTC penalizes Tether and Bitfinex for making misleading allegations
3. Do you want to hold Tether for the long term?
You can hold Tether for the long term, or you can deploy a short-term trading strategy. Both choices differ in key ways, and these are outlined below.
Considerations for a long term investment strategy
If you want to be a part of the cryptocurrency revolution and get involved with what is effectively digital dollars, sign up to a reputable exchange and get some Tether. If you are going to be holding your coins without spending for a while, consider opening a crypto wallet.
Considerations for a short term trading strategy
Trading USDT can be a great way of leveraging the value of the U.S. with the security benefits and digitisation of crypto. To do so, choose a broker with low fees and get started today.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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