What is USDT?
How to Buy USDT
USDT, or most commonly known in the trading industry as Tether, was released in 2014 by founder Brock Pierce. It was introduced as a USD-backed stablecoin, which means that the value of $1 USDT is anchored to the price of the USD. The idea behind the USDT was to stabilize the value of cryptocurrencies and digitize the dollar. For these qualities, USDT has created its own reputation in the market. It is currently supported by many exchanges, which makes it more convenient to purchase it.
USDT can be purchased at exchanges such as Beaxy. Through this platform, you can buy this crypto using two methods:
- Opening and verifying an account with Beaxy will give you access to the USDC/USDT trading pair. To start, register an account at Beaxy.com. Next, submit a qualifying document to verify your account.
- When your account is verified you can add funds to your wallet and begin to trade. In order to buy or sell USDT you will need to fund your account with USDC, navigate to the USDC-USDT trading pair, and enter an order for the quantity of USDT that you would like to purchase.
USDT Value and Price
The price and value of USDT is greatly dependent on the cryptocurrency trading in the market. It also follows the price direction of the USD as its value is tied to it. No matter how volatile the market is, and no matter how low or high the USD gets, the value of 1 USDT will always be equal to 1 USD. This stablecoin follows the 1:1 ratio.
One of the advantages of the USDT is that it is USD-backed, and the USD is considered a safe haven in foreign exchange trading. This guarantees USDT holders that they will always have a stable asset in the market.
USDT is ranked at the third spot in the market and currently valued at $0.999142. Its market capitalization is over 9 billion US dollars with a trading volume of 21 billion USD per 24 hours. There are over 9,180,000,000 USDT circulating in the market presently, out of the total supply of 9,479,000,000. Its highest value was recorded at $1.21 and its lowest value at $0.
This amount of trading volume tells us that the demand for USDT is very high in the market. Unfortunately, it doesn’t have as good a track in its price history. The lowest value of the USDT or Tether was $0, reported on September 18, 2019. However, the crypto’s value has steadied since.
USDT Advantages and Disadvantages
As stated above, one of the main advantages of USDT is that it is a USD-backed stablecoin. Each USDT purchased holds an equivalent of $1 that is stored in a reliable bank in the United States. Compared to other cryptocurrencies whose values are only driven by the law of supply and demand, USDT has an underlying asset, which means that holders are guaranteed that their assets will not drop to zero.
Another advantage of owning USDT tokens is that you can use it to purchase products online. This cryptocurrency was one of the first to “digitize” fiat currencies in order to provide safe, secure, and convenient online transactions. Using cryptocurrencies is far safer than using bank deposits in purchasing various products due to its nature of cryptography. All transactions involving cryptocurrencies are also recorded on the public blockchain, so users can easily track their trading activity.
USDT may just be the beginning of digitized fiat currencies. It also gave cryptocurrencies a more grounded path to digitizing money. Creating digital coins whose value is directly correlated to the most-traded fiat currency in the world could be another step to fully-functioning digital currencies in the future. USDT has opened many possibilities for the future of cryptocurrency.
Despite all the advantages of USDT, it also has a fair share of disadvantages to it. Most of it has to do with its current value. One of the main disadvantages of USDT is that it is not the type of cryptocurrency that you trade for high profits. Since it is a stablecoin whose value is correlated with the US dollar, it also means that it may not divert so much from the value of its fiat currency counterpart. The main idea behind stablecoin was to digitize the dollar to pave the way for secure and hassle-free online transactions that usually involve fiat currencies.
This feature of USDT means that it may not grow as big as Bitcoin or Ethereum. The latter two derive their price and value from the cryptocurrency trading on the market, so their prices are directly related to the demand for them. Both cryptocurrencies also do not have an underlying value that serves as a control to its volatility in the market. USDT, on the other hand, is tied to its 1:1 ratio with the US dollar. With this comparison, you can see how their markets largely differ and how USDT is not much of a day trading asset. This cryptocurrency was created not to build its value but to pave for a new way of online transactions.
Best USDT Wallet – How to Choose the Best Wallet for this Crypto
There are numerous cryptocurrency wallets in the market and a lot of them are compatible with USDT or Tether. However, only a few hold the top spots for the best crypto wallet for USDT.
The Tether Wallet was developed by Freewallet specifically for holding USDT. It has high-grade security features that allow owners to manage their USDT and to send funds conveniently. With this wallet, you can monitor the price movement, exchange your USDT with other cryptocurrencies, and securely store your crypto with your private keys.
Some of the high-grade features of the Tether Wallet are its (1) fingerprint scanner, (2) two-factor authentication, (3) PIN code lock, and (4) email confirmation for each transaction that you execute using this wallet.
Your assets are also stored in offline storage where it is far from the hands of potential cyber thieves. All transactions on the Tether Wallet app are also free. You can download this on Google Play in both iOS and Android.
The second cryptocurrency wallet that is compatible with USDT or Tether is the Trust Wallet. This crypto wallet is one of the most trusted in the market as it is secure and compatible with ERC20 digital currencies.
You can use your Trust Wallet to stake and trade USDT on decentralized exchanges such as the DEX Wallet. This Binance-developed wallet was designed to be user-friendly and secure. Some of its most notable features are: (1) security of client data, (2) military-grade encryption for all interactions on this wallet, (3) login using FaceID, Touch ID, and other passwords, (4) bank-level security for your own private keys, (5) conveniently manage, check, and trade your cryptocurrency assets and your history of transactions.