Wondering how you can invest in Tether today? You can buy Tether (USDT) on Coinbase!
Tether (USDT) is a cryptocurrency that is pegged to the U.S. dollar (USD). It is classified as a stablecoin, which means its price is linked to an underlying asset. Specifically, 1 Tether token equals 1 USD, and this is backed by Tether’s substantial reserves. The assets backing Tether may be held in cash or as loans to affiliate companies. This structure offers investors greater stability, as Tether’s price typically remains close to $1. Consequently, Tether is a preferred intermediary coin for investors engaged in day trading other cryptocurrencies. It allows them to store a stablecoin in their cryptocurrency wallets during trading intervals.
Interested in adding USDT to your crypto portfolio? This guide breaks down the essential steps on how to buy Tether (USDT) for a smooth purchasing experience.
How to Buy Tether (USDT)
Follow this step-by-step guide on how to purchase USDT easily and securely!
1. Open an Online Account
The first step to buying or selling any type of cryptocurrency is usually to open an account with a cryptocurrency exchange that supports market access with the coin or token you’re interested in. To sign up or register for an account, provide your email address and personal information including your full name, phone number and home address. You may be required to submit documents like a government-issued ID or proof of address as part of Know Your Customer (KYC) regulations. Once verified, you can enable two-factor authentication for enhanced security.
2. Fund Your Account
To fund your account, link a payment method such as a debit card/credit card, bank transfer, or PayPal in the “Deposit” section. These may vary based on your chosen platform. For fiat deposits, follow the instructions to enter the amount and confirm fees. For cryptocurrency, generate a wallet address, send funds from your personal wallet, and ensure the address and amount are correct before confirming. The funds may take time to reflect in your account depending on the payment method and network conditions.
3. Purchase Tether (USDT)
Once your account is funded, it’s time to place your first order to buy Tether. Go to the trading section and search for coin by typing Tether or USDT. Choose the option to buy tokens and enter your desired amount. Review the order details carefully before confirming the transaction. Once you've completed the buy order, you’ll see your coins in the exchange wallet.
Tether (USDT) Overview
Tether (USDT) is a popular stablecoin designed to maintain a stable value by pegging its worth to a fiat currency, specifically the US dollar. Launched in 2014, USDT aims to facilitate trading and transactions within the cryptocurrency ecosystem by minimizing the volatility typically associated with cryptocurrencies. Each USDT token is intended to correspond to one US dollar held in reserve, fostering confidence among investors and users alike.
As the most widely used stablecoin, Tether has become an integral part of many trading pairs on various cryptocurrency exchanges. This enables seamless transfers of value between different digital assets. However, it has also faced scrutiny regarding transparency and the actual reserves backing its issued tokens. This has sparked debates about regulatory compliance and the overall stability of the crypto market.
With a market capitalization of over $118 billion, USDT has maintained its position as the third largest crypto next to Bitcoin (~$1.1 trillion) and Ethereum (~$284 billion).
Where to Buy Tether (USDT)
Not sure where to begin your search? Here are a few of best crypto exchanges that offer access to Tether (USDT).
How to Store Tether (USDT) Safely
There are two main types of cryptocurrency wallets: hardware wallets, which are secure offline devices, and software wallets, which are convenient online applications but more susceptible to hacking. Both types aim to enhance control and security over digital assets. Explore a few of our favorite options below.
- Best hardware wallet: Ledger
- Best For:ERC-20 tokensVIEW PROS & CONS:securely through Ledger Hardware Wallet's website
Ledger has sold millions of devices worldwide. Since 2014, it has been securing investors’ digital assets. It is the most popular hardware wallet on the market. Ledger offers numerous features designed to protect your assets.
- Best software wallet: Coinbase Wallet
Coinbase Wallet is a user-friendly app for storing cryptocurrencies in your own custody, separate from the Coinbase platform. It enables easy integration with decentralized finance (DeFi) and non-fungible tokens (NFTs), allowing users to manage all their digital assets in one place.
Trade or Sell Your Cryptocurrency
Tether is unlike most cryptocurrencies because it’s tied to an underlying asset. One of the main reasons that Tether appeals to investors is because it rarely moves from a value of $1. This means that it’s usually not beneficial to hold Tether long term.
Most investors use Tether as an intermediary cryptocurrency. Say you want to purchase Chainlink using fiat currency. After your order closes, the price of Chainlink rises, and you decide that you want to sell your coins. It’s often more affordable to convert your Chainlink tokens to Tether instead of directly back to fiat currency. You can then store your Tether in your cold storage wallet if you think you won’t want to buy in again for a while.
Current Crypto Prices
Keeping track of how cryptocurrency prices are changing can give you a better idea of the best time to buy or trade. Browse a few of the most popular cryptocurrencies in the market below.
Is Tether a Good Investment?
You can use Tether as a dollar replacement and use it between exchanges or individuals. It eliminates the need to move money through a bank. Tether is easy to purchase and sell and is available wherever you normally buy cryptocurrency. Although Tether is significantly less volatile than other major cryptocurrencies, it doesn’t mean that investing in Tether is a guarantee that you won’t lose money. If you do decide to invest in Tether, be sure to use it only as a supplement to a fully diversified portfolio of stocks, bonds and funds.
Frequently Asked Questions
Is it safe to invest in Tether?
As long as you do your research and fully understand the market, it can be safe to invest in Tether.
Where should I store Tether?
You can store Tether in cryptocurrency wallets such as Ledger.
Is Tether a stablecoin?
Yes, Tether is a stablecoin.
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About Sarah Horvath
Sarah Horvath is a prominent freelance senior copywriter renowned for her expertise in cryptocurrency. As one of the leading voices in the industry, Sarah’s insightful analysis and comprehensive understanding of cryptocurrency trends have made her a sought-after contributor to major finance sites. With a focus on providing clear, accessible information, Sarah empowers readers to navigate the complex world of cryptocurrency with confidence. Her dedication to delivering high-quality content has established her as a trusted source for cryptocurrency enthusiasts seeking valuable insights and guidance.