The Tether cryptocurrency is one of the most popular digital assets on the market. The reason is very simple it is a stablecoin. As a stablecoin, Tether has its price pegged to the United States Dollar. That is to say that it is not subject to the extreme volatility of other digital coins. As such, holders of Tether can be certain that their holdings will be worth more for a long period of time, depending on the status and value of
How to Buy Tether the United States Dollar.
In order to buy Tether, users will simply have to start operating on the market in the same way that is applicable in the case of every other coin. The first step will be to set up a Tether wallet. The vast majority of cryptocurrency wallets operating on the market support Tether and are open to users as a means of storage for the given asset. Exchanges also accept Tether USDT and provide ample opportunities for purchasing the asset at favorable prices.
The exchange will become the first stepping stone for users seeking to purchase Tether. The Tether/Bitcoin trading pair is by far one of the most popular combinations found on any exchange. Bitcoin is an excellent way of making the purchase of Tether, however, Bitcoin has a very high entry threshold and is inaccessible to the vast majority of other market players. That is why exchanges offer users the opportunity to connect traditional bank cards so they can act as on-ramps for fiat currencies. By relying on their national currencies, users can use the current exchange rate of their fiat for USDT and find out how much they need to spend in pegging to the United States Dollar as per the exchange rate of their respective central banks.
How to Select an Exchange
The vast majority of digital exchanges, however, do not follow the rates provided by central banks, but rather compile aggregated market data to ensure a mean average price for the asset. The price will not fluctuate or deviate significantly over the course of trading, but users should be aware of the fact that a 1 to 1 ratio is applicable only to the USDT and US Dollar pair. Exchange rates using other fiat will be subject to fluctuation based on the performance of the selected fiat currency.
With the exchange selected, users have to sign up, pass the mandatory Know Your Customer registration procedure and connect their bank card. After that, they will be able to top up their balances and start purchasing any coin they wish, including USDT. The good thing about USDT is that it can be used in a variety of applications as a means of payment and is accepted by a large number of retail outlets and merchants online. Such versatility makes Tether USDT a favorite among cryptocurrency market participants and a go-to solution for payments across borders that require either stability of pricing, or bear the risk of lag times that can affect exchange rates.
- Other factors for selecting an exchange:
- Security;
- Reputation;
- Non-custodial storage;
- Trading fees;
- Customer support availability.
Key Takeaways
The use of USDT has been growing over the years, since the company behind the stablecoin has been able to prove that it has the necessary amount of collateral in its vaults to support the exchange rate and supply of its asset. With such stability, buying USDT is an easy task for most traders. The good thing is that Tether is also easily sold on the open market, considering the high demand for it from both institutions and private users alike.
Many have questioned the need for stablecoins in recent times, but USDT has proven its relevance as an essential equalizer of rates. Moreover, stablecoins are often cited as the future of the cryptocurrency market. Such an outlook is reinforced through the actions of many central banks, which have been looking to release their own stablecoins in the form of CBDCs, which would be tethered to fiat with its value.
