What is Tether (USDT) and How to Buy It?
Tether (USDT), an integration of cryptocurrency/the blockchain technology and fiat currencies. In this guide, we will cover all the must know about Tether (USD): How to buy Tether, USDT best exchanges, digital wallets and more. We have been going on and on about the capability of the blockchain technology that is getting us out of the autocratic management of money exercised by centralized institutions like central banks, normal commercial banks, and mobile money transfer institutions.
Governments, on the other hand, have been up in arms over the increasing popularity of blockchains and how their currencies carry a latent threat of enabling illegal practices through the obscuration of financial transactions that is now possible using the blockchain technologies.
The Epic Battle Between Blockchain, Fiat, and Regulatio
So the battle of the ages has been on since Satoshi mined the genesis block in January 2009. Blockchain developers have been working day and night to defeat all manner of stifling regulation through innovative cryptographic ingenuity, while governments have been trying to outguess the geeks to ensure continued sanity in the world order and retain control of creation, storage and movement of money.
So when someone came with a cryptocurrency called Tether, both worlds were caught in the battleground, dumbstruck, and are trying to understand how this peacemaker can make them re-sheath their bloodied swords, shake hands, and co-exist in some restless harmony.
What is Tether (USDT)?If you grew up on a livestock farm, you know that to tether an animal is to keep it near a structure you select, by tying it to that structure using a rope. If you love Bluetooth technology, you know it is possible to tether a nearby device to another and make it enjoy connectivity.
Well, Tether is an innovation in the blockchain space that has made it possible to convert any fiat currency into a corresponding cryptocurrency. Tether Limited will then immediately accord the resultant tether coin all the functionalities of the blockchain, while at the same time allowing the tether retain the simplicity, stability, and usability of the ‘tethered’ fiat currency.
So if you submit some USD to be converted to Tether, you get the same amount of USDT, which is USD Tether, that can now be tradable, exchangeable and redeemable as a cryptocurrency. In one stroke, the technology manages to eliminate the volatility associated with Bitcoin and its siblings, while retaining all the other blockchain capabilities and awarding them to the world’s assets. Tether is made possible by the Omni layer Protocol operating on the bitcoin blockchain. It uses what is known as Proof of Reserves. Tethers maintain a near-perfect 1:1 parity with their underlying assets.
How to Buy Tether (USDT)?
Buying Tether (USDT) can be a similar process to other cryptocurrencies. It is a simple process that can be done quickly. The first thing to do is to create a digital wallet that supports USDT.
Tether (USDT) Digital Wallets
You can hold USDT in any hot wallet or exchange that offers the coin, including Binance, OKEx, Bittrex, Kraken, Poloniex, and ZB.com. The main crypto wallets for semi-hot storage include Holy Transaction and Omni wallet.
Tether (USDT) Best Exchanges
The lion’s share of USDT trades is shared between Binance and OKEx, With Huobi, HitBTC, and Bitfinex bringing up the rear. You will also find crypto to crypto trading pairs at smaller percentages and for a variety of coins at other exchanges like Poloniex, Bittrex, Change.io, and ZB, com.
Buying Tether (USDT) with Credit Card/Other Cryptocurrencies
Acquire Tether from Tether Limited
Because Tether is leverage crypto that puts its value on a 1:1 ratio with the underlying currency, USDT can be acquired by submitting US dollars to Tether Limited, which then issues the equivalent number of USDT to an appointed user’s compatible wallet, and holds the reserves for US dollars. All that is needed is to carry out the normal sign – up and follow the deposit instructions to load up your account and get the USDT sent to a wallet of your choice.
Acquire USDT with other cryptocurrencies
One of the easiest ways to cash out to USDT is through Binance. They have the easiest and fastest crypto to crypto exchange from Ethereum, Bitcoin and other major cryptocurrencies to USDT. What you want to do with USDT is to bring all your crypto holdings to USDT for safeguarding against day to day or periodic volatility. You can, therefore, convert all your redeemable crypto into Tether for safekeeping. At Binance, there are USDT pairs of Bitcoin, Ether, Litecoin, Neo, BCC (Bitconnect) and BNB (Binance Coin). This means you can import any of these currencies to Binance and trade them for USDT.
How to Buy Tether (USDT) via Binance?
Register with Binance
The registration to Binance is straightforward and is completed after you carry out an email verification and 2-factor authentication. Once in Binance, select funds – Deposits; Bring your crypto to Binance for exchange to USDT. You will find your appointed pairs, and you can then acquire your USDT and spirit it off to cold or semi cold wallets for hodling or to use as normal dollars, but on a blockchain. This is the main method that most traders will be familiar with because of its familiarity and ease.
Import funds and buy USDT
You will be given the Crypto Address on which to send any of the options given above. Don’t send any crypto to an address belonging to another. Once you have the crypto balance on Binance, proceed to Exchange – Advanced and select the USDT; Once that is selected, click on the appropriate pair that matches the crypto you have deposited, and open in order to buy USDT. You can now buy as much USDT as you can afford on the dashboard below the graph by selecting the quantity you want and matching it with the available crypto balance you have for appointed Crypto.
Tether Use Cases
At current, crypto traders go through hell identifying payment avenues for converting fiat to crypto. From having to find the right exchange that will accept your fiat and provide the crypto you are looking for to engaging in long security protocols and wait times for wire transfers to clear, many newbie traders simply give up in the middle of the process.
Exchanges also have to integrate with banks that may not have necessary APIs, making the transfers extremely hard and expensive. Tether relegates this problem to the backburners of history. The risk of handling fiat is handled by Tether Limited, which in turn can simply provide the tethers.
With USDT and other Tethers, it is now possible to HODL crypto that is pegged on a fixed fiat value and avoids the hassle of withdrawing crypto assets that someone wants to remove from the sometimes unforgiving volatility of cryptos like bitcoin.
All the other characteristics of bitcoin are made possible with Tethers. And all one needs is an Omni Layer Protocol enabled wallet like Omni or Holy Transaction. This means that you have pseudo-anonymity, peer-to-peer flexibility, cheap and fast cross-border transfers of fiat based crypto.
To the Merchants
Tethers bring a breath of fresh air to merchants allowing them to concentrate on their core business and not on payments. Transfer of USD/fiat is now made possible without the hassle of centralized money movement systems, chargeback risks and intermittent conversion across fiats.
Tether (USDT) Challenges and Prediction
The Bitcoin Baggage
If the Launchpad for the Tethers is the Omni Layer Protocol laid on the bitcoin platform, and it has not tried to address the scalability problems that bedevil the bitcoin blockchain, then questions still abound about the problems that affect bitcoin and whether they also manifest in Tether.
The Fiat and Centralization Curse
For the simple reason that the Tether is generated after fiat is deposited somewhere, the question of anonymity cannot be wished away. Just how is Tether a cryptocurrency when it is permanently tied to a fiat value? Proof of Reserves is a distant call from decentralization, the main drive that makes cryptocurrency a choice for financial libertarians.
But we are talking about a currency that is running on major exchanges and carrying fiat value. That in itself makes the Tether a highly attractive compromise that promises a piece of both conflicting worlds. It is now easier to offload gains to a fiat simulator crypto and be assured of the stability of fiat in a blockchain setting, which is refreshing.
As much as the Tether is designed to work with many world’s cryptos as underlying assets, The USD Tether is the world’s first Tether, and the technology is simply in its earliest stages.It is possible to now download crypto to crypto that retains fiat properties. It is called a Tether, and the USD Tether is the first among many.
The most relevant purchase of a USDT is as an exit of crypto loot from trading to USDT for consolidation and security of accumulated value. It is easy to bring Eth or Bitcoin from any wallet to Binance and purchase USDT which can be stored on an Omni or Holy Transaction Wallet, or any other Omni compatible wallet, as the Tether runs on the OLP which is layered on top of the bitcoin protocol. But this must be said: Cryptos are always volatile assets. Do not trade in cryptos what you cannot afford to lose.