I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolHow to Buy USDT (Tether)
Updated on January 7, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
See all posts Rohit MittalAt a Glance
- Tether (USDT) is a blockchain platform that offers stablecoins linked to government currencies.
- USDT is the largest and most widely used stablecoin, redeemable for a corresponding US dollar held by Tether.
- However, there have been concerns about Tether’s ability to back the coin with adequate reserves.
- USDT can be bought on crypto exchanges, and once acquired, it can be transferred, stored, and spent like any other cryptocurrency.
So, you want to get into crypto. You’ve heard all of the success stories – people making millions of dollars as the prices of cryptocurrencies like Bitcoin go through the roof. Or perhaps you have friends who make a steady income by mining cryptocurrency.
But maybe you are looking to avoid volatility in the cryptocurrency markets. If so, you may want to know how to buy USDT, a crypto asset that mirrors the value of the U.S. dollar. Each USDT is redeemable for $1. This means you can get the stability of government monies with the efficiency of cryptocurrency.
If you are trading with USDT (as opposed to the U.S. dollar), you do not have the transaction costs and delays that negatively affect your trade execution within the crypto market.
You can buy USDT on most crypto exchanges. Create an account on the exchange, buy the Tether (USDT) crypto asset, and transfer it to your crypto wallet.
Read on to learn more about USDT and how to buy Tether.
What is Tether (USDT)?
Tether is a blockchain platform that offers stablecoins. Stablecoins are blockchain-based assets that are linked to the price of government monies (also known as fiat currencies).
Today, Tether supports four stablecoins: the U.S. dollar (USDT), the Chinese Yuan (CNHT), and the Euro (EURT), as well as a stablecoin backed by 1 oz. of gold (XAUT).
As of 2020, USDT remains the largest and most widely used stablecoin.
Each USDT token is redeemable for a corresponding U.S. dollar held under custody by Tether. The total value of all USDT is said to be equal to the reserves held by Tether.
There has been some controversy surrounding Tether’s ability to back the stablecoin. In January 2018, the necessary audit to ensure that the real-world reserve is maintained never took place. Since then, worries about whether the company has enough reserves to back the coin have sprung up.
Once a USDT is newly minted and issued, it can be transferred, stored, and spent just like any other cryptocurrency. If you are trading with USDT (as opposed to the U.S. dollar), you do not have the transaction costs and delays that negatively affect your trade execution within the crypto market.
Stablecoins are an emerging class of crypto assets that are finding use beyond the world of trading, including in sectors like traditional cross-border payments.
Where Can You Buy USDT?
The first thing you need to know about how to buy USDT is knowing where to buy USDT.
USDT can be bought on most crypto exchanges. You need to choose an exchange that operates within your jurisdiction and trades Ether. Then you need to set up an account on the exchange platform. Make sure you do your homework and choose a reliable exchange platform. Not only will this help you to avoid scammers, but also hidden fees and high commission rates.
How to Buy Tether Cryptocurrency?
After you have found the right crypto exchange for you, you need to set up an account. To buy Tether (USDT) on this exchange, follow all of the instructions on the exchange’s website. Click on Buy Crypto, select Tether (USDT), and choose your payment method.
Next, you will need to get a crypto wallet. This is where your newly acquired crypto asset will be safely stored.
There are different types of wallets for you to consider, and each wallet can vary in terms of features, usability, and security. The first choice you have is choosing between a hardware and a software wallet.
A hardware wallet is an offline, physical device that stores the private key to your Tether (USDT). This type of wallet is one of the safest wallets available. It does require an initial investment – you need to buy the hardware. Most hardware wallets for sale will support not only USDT but other crypto assets as well.
A software wallet is generally free to use. It will store the private key to your Tether (USDT) on your device, whether that be a mobile phone, desktop, or laptop computer. A software wallet is considered less safe than a hardware wallet because it might be vulnerable to malware. Make sure to take the necessary precautions and only download official or highly recommended wallets.
Tether FAQ
Now that you know how to buy Tether (USDT), you may want to know more about this stablecoin and what it is used for.
What Is Tether Used For?
Tether is useful for crypto investors because it offers a way to avoid the extreme volatility of other cryptocurrencies. Additionally, if you are trading with USDT (as opposed to the U.S. dollar), you do not have the transaction costs and delays that negatively affect your trade execution within the crypto market.
Stablecoins like Tether are an emerging class of crypto assets that are finding use beyond the world of trading, including in sectors like traditional cross-border payments.
Is Tether a Stablecoin?
Tether belongs to a type of cryptocurrency called stablecoins which aim to keep cryptocurrency valuations stable, as opposed to the wide swings observed in the prices of other popular cryptocurrencies like Bitcoin and Ethereum.
The theory is that this stability would allow it to be used as a medium of exchange and a mode of storage of value, instead of being used as a medium of speculative investments.
How Does Tether Stay at $1?
While Tether has dropped below $1 before, the stablecoin can retain its value because it is matched with corresponding U.S. dollars held under custody by Tether and 100% backed by Tether’s reserves.
There has been some controversy surrounding Tether’s ability to back the stablecoin. In January 2018, the necessary audit to ensure that the real-world reserve is maintained never took place. Instead, Tether announced it was parting ways with the audit firm. It was promptly issued a subpoena by regulators. Since then, worries about whether the company has enough reserves to back the coin have sprung up.
Frequently Asked Questions (FAQ)
What is USDT (Tether)?
USDT, or Tether, is a type of cryptocurrency known as a stablecoin, which aims to keep cryptocurrency valuations stable. It’s typically pegged to a fiat currency like the US Dollar, hence “USDT.”
How can I buy USDT (Tether)?
- Select a Cryptocurrency Exchange: Choose an exchange that lists USDT, like Binance, Coinbase, Kraken, or Bitfinex.
- Create an Account: Sign up and complete any required identity verification process.
- Deposit Funds: Deposit fiat currency or other cryptocurrencies into your exchange account.
- Buy USDT: Go to the market section, select a USDT pair (e.g., USD/USDT), and execute your trade.
What payment methods can I use to buy USDT?
You can buy USDT using various payment methods like bank transfers, credit/debit cards, or other cryptocurrencies, depending on the exchange’s options.
Are there any fees for buying USDT?
Yes, most exchanges charge fees for transactions, including purchasing USDT. These fees can vary based on the exchange, the size of the transaction, and the payment method.
Is USDT safe to invest in?
As a stablecoin, USDT is generally considered stable in terms of price. However, like any investment, it comes with risks. It’s important to research and understand these risks before investing.
How do I store USDT after purchasing?
After purchasing USDT, you can store it in a digital wallet. This can be a wallet provided by the exchange, a personal software wallet, or a more secure hardware wallet.
Can I convert USDT to other cryptocurrencies?
Yes, you can convert USDT to other cryptocurrencies on most exchanges where USDT is listed. Simply choose the USDT pair with the cryptocurrency you wish to acquire.
How long does it take to buy USDT?
The time it takes to buy USDT can vary. Transactions using credit/debit cards or other cryptocurrencies are often instant, while bank transfers may take longer.
What should I consider before buying USDT?
Before buying USDT, consider factors like the stability of Tether, the fees involved, the security of the exchange, and your investment goals.
Can I buy USDT with fiat currencies?
Yes, USDT can be purchased with fiat currencies like USD, EUR, or GBP on exchanges that offer these trading pairs.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
Conclusion
If you are looking to avoid volatility in the cryptocurrency market, you may want to know how to buy USDT. Tether (USDT) is a crypto asset that mirrors the value of the U.S. dollar. Each USDT is redeemable for $1. This means that you can get the stability of government monies with the efficiency of cryptocurrency.
If you are trading with USDT (as opposed to the U.S. dollar), you do not have the transaction costs and delays that negatively affect your trade execution within the crypto market.
Stablecoins like Tether are an emerging class of crypto assets that are finding use beyond the world of trading, including in sectors like traditional cross-border payments.
Remember, cryptocurrencies are still subject to tax. You can buy USDT on most crypto exchanges. Create an account on the exchange, buy the Tether (USDT) crypto asset, and transfer it to your crypto wallet. It’s as easy as that!
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.