As a beginner, you may not know where to start when it comes to purchasing Tethers. You may have heard of the term Tether and wondered how they work or learn more about their benefits?
This article will cover everything you need to know about USDT, from understanding what it is and how it works to purchasing your first Tether (USDT) coins. By the end of this guide, you’ll be ready to purchase your very own Tethers!
How does Tether work?
Tethers are digital tokens (cryptocurrency) that you can purchase using fiat currencies (USD, EURO, etc.). It is widely used since it’s “pegged” to the value of the dollar. That is, one USDT is always one USD.
Since Tether is transferred over the blockchain, it can simply be described as a “decentralized currency,” which means that unlike traditional money transfer methods such as going to the bank or checking into your online banking platform, Tethers are not controlled by a single entity.
When sending or receiving Tether (USDT), the transaction occurs in real-time, unlike traditional currency that is held within bank accounts and can take several days to process. Instead of depending on a middleman such as your bank, cryptocurrency transactions occur directly between you and another person/organization/website.
Benefits of Tether:
- Instant transfer (can be transferred in seconds, there is no waiting for the transaction to complete)
- Low fees (no heavy charges that are associated with other forms of currency transfers such as cross-border bank payments). These low fees help increase any profits you could make from sending or receiving currency.
The benefits of Tether (USDT) are no surprise to many cryptocurrency users, but for anyone who is just starting out and will be using Tethers for the first time, these points are crucial. As an added benefit, you can hold your USDT in a wallet that is connected directly to your crypto exchange. This means that transferring USDT to fiat and vice versa is almost instantaneous, as the currency will already be held in your exchange of choice.
How to Buy USDT
“What’s the best way to buy USDT?” is a very common question among beginners in cryptocurrency. We know how frustrating it can be to spend hours upon hours trying to figure out which method of purchase would work best for you, and we want to make this process as straightforward as possible!
The first step when purchasing Tethers is to decide what cryptocurrency you would like to purchase USDT with. Depending on your personal preferences and ease of access, you can choose from several cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more.
Once you have chosen which cryptocurrency you would prefer to purchase Tethers, the next step is to register an account and complete any required forms of KYC verification.
The last step is to purchase the cryptocurrency you selected in the previous step with your preferred payment method/system, which could be a credit card or bank account, depending on what’s available for your country and region. Once you have sent this currency over to the wallet that is connected to USDT, you are ready to purchase Tethers with your newly acquired cryptocurrency!
History of Tether (USDT)
Tether (USDT) was co-founded by four crypto enthusiasts: Brock Pierce, Reeve Collins, Craig Sellars, and Leonardo Irizarry. While working together on another virtual currency project called Mastercoin, they recognized many pitfalls in using Bitcoin to purchase other cryptocurrencies like the now created Tethers due to the lengthy transaction times and high fees associated with it. As such, the team began working on an idea that they named Tether, a coin that you can purchase using Bitcoin but that acts as a traditional fiat currency.
The first issue that the Tether team faced was creating a cryptocurrency that had stability and security capabilities, meaning any transactions or exchanges made would not result in unexpected losses. The team then designed Tether to be pegged or “tied” to the currency of a traditional fiat currency, meaning that 1 USDT is equivalent to a US dollar.
How to Send & Receive Tether (USDT)
Now that you have your very own crypto-wallet and some USDT inside it, the next step is to use your Tethers. While you may be tempted just to leave your USDT sitting in a wallet, it’s actually very easy for beginners to transfer their Tether from one place/person to another. Follow these steps below regarding how to send and receive Tether:
Step 1) To send or receive USDT, open your wallet and click on the “Send/Receive” button.
Step 2) You should now see a box that prompts you to input the amount of USDT you would like to send/receive from your own wallet. Once you have entered this number, click the blue “Send” or “Request” buttons depending on whether it’s you sending or receiving.
Step 3) The next step is to enter the wallet address you would like to send/request your Tethers from and click “Confirm” at the bottom of the page once you have typed in this information.
Step 4) That’s it! Now that your transaction has been sent or requested, it’s just a matter of waiting for the other party to confirm and complete it. Once this is done, you have successfully transferred your USDT from one location/person to another.
Now that you know how easy it is to transfer USDT around and make transactions with Tether, you have a powerful ally in your investment arsenal. We hope that this article helped answer some questions about Tethers and gave you an idea of how simple it can be to use them for purchases, transfers, and other transactions.
Tether (USDT) FAQ
Is Tether a good investment?
Tether (USDT) can be a good investment for beginners because it is relatively stable compared to Bitcoin or other cryptocurrencies. This is because it’s “pegged” to the USD. It can provide some stability in an ever-fluctuating market of cryptocurrency prices that tend to go up and down with minimal warning.
Does fiat currency back USDT coins?
Yes, Tether’s coins are 100% backed by fiat currency (USD) and can be exchanged at any time.
What will Tether be worth in 2025?
Tether has a set value that is stable and equivalent to a US dollar, so it should be worth at least as much in 2025.
What can you use Tether for?
Tether’s main use is as a method of exchange between cryptocurrencies and fiat currencies such as the US dollar. This means that you can purchase other cryptocurrencies through Tether and not go through the lengthy exchange of one currency for another.
Can I send USDT between wallets that are in different currencies?
Yes, you can easily convert and send between different currency types. For instance, if you have USDT on your account and want to send it to ETH, it will automatically convert the USDT to ETH without you having to figure out the exchange rate.