Tether is a stable currencywhich is a cryptocurrency whose value is It is based on assets other than cryptocurrenciesGenerally, fiat currencies (such as the US dollar) or commodities such as gold.
Unlike Bitcoin, Tether is designed to have a 1:1 ratio with a fiat currency, the dollar, to be then launched in different versions as we will see later.
Stablecoins are a phenomenon that appeared very early in the cryptocurrency ecosystem and helps solve a number of issues related to owning and trading cryptocurrencies, which is the reason for their success.
How to Buy Tether: Summary
The official website mentions a definition of this cryptocurrency: “Tether converts money into digital currency, to anchor the value or peg it to the price of currencies such as the US dollar, the euro, the Chinese yuan and gold abroad.”. English word Rope Actually this means correlation.
This results in 4 distinct stablecoins: USD ₮, EUR ₮, CNH ₮ and XAU ₮.
Users then use Tether to complete financial transactions without experiencing unexpected price changes, as is the case with other virtual currencies. This is one of the reasons why this stablecoin ranks first in terms of trading volumes and third in terms of capitalization, after Bitcoin and Etherum.
We learned from the Tether White Paper that each token is backed by a dollar held in its reserves; The value of the token remains stable thanks to the bots that buy and sell whenever its value deviates from the dollar. In the Tether project, in addition to the USDT token pegged to the dollar, there are tokens pegged to the euro, offshore Chinese yuan, and gold.
Basically, Tether works like this: every time a user deposits a dollar into a Tether account, one of the Tether units is minted.
How to buy Tether
The rope can only be purchased through exchange. To purchase it you need an account, a means of payment and the Internet. By its nature, Tether does not offer any speculative advantage, and therefore it is not available on CFD brokers.
Coinbase is one of the most popular and safest platforms for buying and selling tether or other digital currencies like bitcoin.
In the next paragraph, you will find the steps to open an account, click on Coinbase. Once the account is opened, it will be necessary to add a payment method (credit card or bank transfer): by choosing a credit card, the procedure takes a few seconds but the commissions are higher, while with a bank transfer you have to wait for the money to be received by the exchange with a lower fee.
At this point you can start Buying and Selling Tether:
- From the drop-down list, it is possible to select the cryptocurrency that we want to buy;
- Select the amount you want to buy
- Choose your preferred payment method
- Complete the order
- Check that the cord is loaded into the wallet
Where to buy Tether
Coinbase exchange Founded in 2012 in San Francisco, it has become a global leader in cryptocurrency transactions. performs function suitcaseWhere you can buy and sell cryptocurrency.
In order to work, it is necessary:
- Registration, through a free and fast procedure;
- Create an account in the name of a natural person or company, by entering the required data and password;
- Check the e-mail in the mailbox entered during registration;
- Follow the instructions in the e-mail and enter your phone number (which will be verified by sending an SMS with a code to be entered in the section prepared for verification);
- The wallet is active but it will be necessary to complete another step:
- Enter the Coinbase Dashboard under “Complete your account”;
- Choose “Verify Your Identity” and provide a valid identification document (ID card or passport).
Why buy Tether
Tether is purchased for the purpose of maintaining “digital” liquidity with a fixed value in your wallet, so that you can complete transactions on other cryptocurrencies faster and with lower fees. Unlike Bitcoin and other cryptocurrencies, buying Tether does not carry any speculative advantage caused by price fluctuations, but:
- It is convenient to allocate liquidity without having to make expensive transfers to dollars or euros;
- No fees are paid as long as the funds are invested in cryptocurrency.
Pros and Cons
Tether is a cryptocurrency with a fixed value that reflects the value of a fiat currency. Tether’s stability against the dollar is achieved by keeping credit and cash deposits, repurchase agreements and treasury bills in reserves equal to the dollar value of existing units.
these are me Benefits by Tether:
- stableTether is backed by a fiat currency, which limits its volatility by allowing users to easily access the cryptocurrency market, without being exposed to price changes.
- popular and acceptableTether is the third largest cryptocurrency by capitalization and can be bought and sold on most exchanges.
- intuitive: Thanks to the association with fiat currencies, it is easy to understand the value of tether.
- Low commissions
However, Tether has some points from weakness:
- Associated risks To the stock exchanges, because they are not regulated
- Issuer risk: Tether is issued by a private company based in the Virgin Islands, a well-known tax haven.
- a little transparency Managing the funds held to balance the value of the tokens
Buy the rope on Coinbase