Tether (USDT) is a stable-value cryptocurrency or “stablecoin”. Its value is tethered to the price of real-world currencies, such as the US dollar (USD). Tether tokens maintain a 1-to-1 ratio with the supported fiat currencies in terms of value.
The stability of Tether has made it very attractive to crypto investors who want to hedge against the market’s volatility. It was specifically designed to function as a bridge between fiat currencies and cryptocurrencies. In this guide, we cover everything you need to know about where and how to buy Tether (USDT).
When purchasing Tether for the first time, it is important to understand that there are several trading possibilities available. The two primary strategies with Tether are to buy the token, and to trade it on the markets. These are fundamentally different in ethos and practicality.
When you buy Tether, you effectively take ownership of the cryptocurrency, and hold the token for a period of time. Essentially, by purchasing the altcoin you are investing in the future of the Tether project, and believe that its price will escalate in value over a period of time. This is definitely a more long-term strategy than trading.
Conversely, trading cryptocurrency involves benefiting from price movements in the token. It is not necessary for the price to move upwards in order to make money from trading, as investors can short sell the currency, in order to profit from its decline. There are a wealth of other trading strategies available as well, and these all require investors to be knowledgeable about the market, and to monitor it on a relatively close basis.
Trading Tether is a short-term strategy, and one that many investors opt for to trade through CFD as a valid approach. CFD contracts enable investors to leverage more heavily, which means that gains can be magnified. Leveraging essentially involves trading with money that you don't have; it can be viewed as trading via credit.
There are many considerations for the first time Tether trader, and it is important to go into the process in an informed manner. Trading cryptocurrencies, or indeed any equity, commodity, or stock, is a complex process, and it's certainly possible to lose money as well as make profit.
It’s therefore important to familiarise yourself with the market, and all of the processes involved, before beginning any Tether trading. This should include extensive research into setting up cold storage wallets, all online security issues related to cryptocurrency, not to mention compatibility. Only when you have done this should you begin your Tether trading journey.
Purchasing Tether via an exchange is a pretty intuitive process nowadays, as these platforms have been built with the beginner in mind. They are very user-friendly, and not at all difficult to utilise.
Nonetheless, it is certainly important to choose the appropriate cryptocurrency exchange for your needs. Again, fees and security will come into the equation here, as they can significantly differ between platforms, and are always major considerations for users. Regulation and encryption should also be taken into consideration, and it is definitely better to clarify the situation regarding these issues with an exchange before entering into any trading arrangement.
Storing your Tether tokens in a wallet is certainly to be recommended, and there are several different types of wallet available. The fundamental choice here is between a hardware and software wallet, with the two types both attracting a significant number of cryptocurrency investors.
Software wallets can be used online, or they can be stored via desktop or mobile platforms. They are based on computer software and can be favoured by some investors due to the optimum control that they offer users. Nonetheless, hardware wallets, which often utilise a technology known as cold storage, are generally considered to be more secure, being based on private keys and separate hardware devices.
There are many cryptocurrency exchanges available on the Internet now, for those who are looking to buy and sell Tether. Some of the most popular exchanges include the following:
Users can expect to see a few differences between exchanges, not least in the fees charged. User interfaces will also be significantly different in many cases, while security provisions can also differ. Exchanges also accept different currencies and payment methods, while their registration and licensing can also be significantly different. This is why it is important to investigate and research a particular exchange before committing to any investment process.
There are a variety of payment methods available to purchase Tether, and these can differ in several important ways.
Debit cards - these tend to be the most affordable way to purchase Tether, but they don't necessarily come with the security provisions associated with credit cards.
Credit cards - Credit cards are fast and secure, but you can expect to pay fees when you choose to purchase Tether via this method.
PayPal - This is another increasingly popular option, but there are some drawbacks to using PayPal. Firstly, it is not accepted by every cryptocurrency platform. Secondly, there have been question marks raised regarding its security protocols, and how willing the owners will be to refund any payments should a user encounter fraud. PayPal is also not necessarily as fast as other payment methods, as sometimes certain aspects of its procedure can result in delays. And, finally, PayPal can attract fees in some circumstances.
Bitcoin - It is also often possible to purchase Tether via the market-leading cryptocurrency, but bear in mind that this is less flexible than other payment methods.
Buying Tether involves a few relatively simple steps. Firstly, sign up for a cryptocurrency exchange or brokerage; eToro is one of the top platforms available. Next, confirm your identity on the brokerage or exchange platform that you've chosen.
Registering your chosen payment method on the website should be relatively straightforward in most cases, and is usually accessible via your account page. You should then deposit some funds in order to trade with. Then you’re ready to begin investing. Identify the investment that you are interested in via the site's user interface.
Finally, ensure that you have stored the tokens securely in your wallet solution, and inform your brokers of your trading intentions, if indeed you have chosen this approach.
Storing Tether safely in a wallet is not a particularly difficult process, but it is absolutely vital if you intend to store your tokens for a period of time. Those investors with a longer-term strategy will not necessarily need to go through this method.
Typically, hardware wallets require you to keep a private key in order to gain access to your tokens. They should be stored extremely securely in an encrypted location. Only those with this access key will ever be able to access your wallet, so it is vitally important to retain this identifier.
There are a few considerations you should take into account before you hit that “Buy” button and make your first Tether purchase.
The first step is to decide what payment method you want to use. Different options (PayPal, bank transfer and credit/debit card) are available in different countries. Consider factors like reliability, speed and fees of different payment methods before you make your purchase.
The next step is to set up a cryptocurrency wallet that supports Tether. Even though the platform you use will automatically create one for you, it is good practice to use a wallet that you have 100% control over. The built-in wallet provided by various sites is hosted by the platform and can be vulnerable to hacks or theft. If your plan is to hold your USDT as a long-term investment, then find a secure software or hardware wallet for offline storage.
The only exception to the wallet rule is if you’re entering into a CFD (Contract for Difference) agreement with a broker. CFDs are financial derivatives, and you don’t need to actually own any Tether to trade such financial instruments.
The low transaction fees and upkeep costs of cryptocurrencies are some of the reasons why digital coins like Tether have become so popular. Using USDT as a means of payment is faster and much cheaper than traditional alternatives. That said, it’s important to compare the fees and costs of using Tether with other options.
Tether has been issued on several blockchains. The type of security features your USDT tokens have will depend on the source blockchain. For example, USDT issued on the Bitcoin blockchain using the Omni Layer Protocol have the same security features as BTC. On the other hand, USDT tokens issued on the Ethereum blockchain using the ERC-20 standard have the same security features as ETH and other ERC-20 tokens. It’s a good idea to combine Tether’s inherent security features with the security protocols offered by crypto platforms, such as two-factor authentication for securing your private keys.
Navigation and ease of use may seem like trivial considerations, but they are quite important. Remember, transactions made on the blockchain are immutable, so there are no refunds once a transaction is completed. Before you make your first USDT purchase, make sure to acquaint yourself with how your chosen platform works. Maybe even send a few dummy transactions to get a feel of the purchase process.
A long-term investment approach with Tether is focused on the token achieving price discovery over a period of time. Conversely, a short-term investment in Tether is more associated with trading, and can even be completed within a matter of minutes in some circumstances.
The obvious advantage of a long-term approach is that it is more based on market fundamentals. Short-term trading is riskier and more volatile. Conversely, short-term investments obviously deliver a profit in a shorter period of time, if you indeed invest wisely. Another advantage of short-term investment is that it tends to be associated with leverage and other trading mechanisms that offer flexibility.
Nonetheless, those choosing to purchase Tether are holding a physical asset, and this can have its advantages as well. One obvious benefit is that Tether tokens can then be used for other purposes as well as trading.
"Avoid the hype. If you are new to crypto and hear about the “next big thing/coin/project” then you are most likely on the losing side of the cycle and would be buying as the original holders are selling. Start with small amounts and practice the process of buying/selling/transferring."
David Schwed Chief Operating Officer of Halborn
Cryptocurrency exchanges and brokers support multiple payment methods for buying Tether. Below are some of the most popular payment methods.
Buying Tether with PayPal: Several reputable brokers and exchanges support PayPal as a payment option. You can use your existing PayPal account to instantly make transactions without having to provide any bank accounts or credit/debit card numbers. The only drawback is that PayPal is location-specific and it’s not available in all countries.
Buying Tether via Bank Transfer: Bank transfer is another popular payment option. It is usually the cheapest method for buying coins in terms of fees, but payments can take time to process. Spending limits are also usually higher when you use bank transfer, but only if you verify your bank account.
Buying Tether with Debit or Credit Card: Payments using debit or credit cards are supported by most exchanges. It’s a convenient option because everyone has a card these days, but purchases with a credit card have high transaction fees. You may have to spend anywhere from 3% to 6% of your transaction amount on fees.
Buying Tether Using Crypto Deposit: Some platforms allow cryptocurrency deposits as a payment option. That means you could use Bitcoin or Litecoin to pay for your Tether purchase. It’s quick, convenient and has minimal fees.
There are fees associated with purchasing Tether. Both the Tether Platform as well as exchanges and brokers have fees for withdrawals and deposits. Below are some of the fees you should consider:
Many different types of crypto wallets can hold USDT. Tether was originally launched on the Bitcoin network (Omni Layer Protocol). It later transitioned to the Ethereum blockchain, so some USDT tokens are ERC20 compatible. At the time of writing, USDT tokens exist on the Bitcoin, Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains.
What wallet you can use to safely store your Tether will depend on which blockchain your tokens exist on. You can confirm what type of USDT you have (i.e. Omni USDT, ERC20 USDT, or TRC20 USDT) by checking the address. Below are some good storage options for USDT.
Web Wallet: Web wallets are specifically designed for web browsers. They can be accessed from anywhere in the world as long as you have access to the Internet. Most platforms usually automatically create a web wallet for users to facilitate easy storage.
These wallets are quite convenient, but they have risks. The biggest issue with web wallets is they are hosted by third parties. That means if the platform that hosts your wallet gets hacked or goes out of business, you may end up losing all of your USDT.
Mobile Wallet: Mobile wallets are designed for smartphones and tablets. They’re easy to use, convenient, and much more secure than web wallets. The only issue with mobile wallets is your assets will be at risk if anyone manages to gain full access to your phone or tablet. Good examples of mobile wallets for USDT include MyEtherWallet and Coinomi.
Desktop Wallet: Desktop wallets are designed for PCs. They’re the most secure of all software options because they offer security protocols such as two-factor authentication (2FA) and advanced encryption for securing private keys. They are less portable than mobile or web wallets, but they are much more difficult to hack. Good examples of desktop wallets for USDT include Atomic Wallet, Exodus and Coinomi.
Hardware Wallet: Hardware wallets are considered the most secure of all wallet options because they offer “cold storage”, meaning your tokens are stored offline. Popular hardware wallet brands that support USDT include Trezor and the Ledger Nano S.
Wallet CombinationsIt is common for cryptocurrency holders to use multiple wallets for convenience and added security. Some wallets can be interlinked to allow users to easily transfer their tokens from their software wallet to hardware wallet. For example, the Ledger Nano S is compatible with AirSwap. If you hold USDT in AirSwap, then you can directly manage your tokens and send and receive from your Ledger wallet.
Tether can be purchased using several popular cryptocurrencies, including Bitcoin, Ethereum and Ripple. As one of the most valuable cryptocurrencies in terms of market capitalisation, USDT is available on most exchange and broker platforms. Finding a crypto trading pair shouldn’t be too difficult.
If you want to buy Tether with Bitcoin, then simply find a platform that offers those two assets as a trading pair. Every platform has fees associated with these types of transactions, so compare the fees between different platforms before you make a transaction.
What’s the minimum purchase for USDT you can buy? The answer is exactly one token, which is pegged at $1. It’s not possible to buy small amounts of Tether as all platforms require users to buy a whole USDT token or more. In fact, most platforms require users to buy at least a minimum of 5 USDT.
The upside is you can buy Tether without limit, especially if you buy it directly from the Tether Platform. How much USDT you can buy comes down to how much you’re willing to spend. However, please note the current amount required for fiat withdrawal or deposit on the Tether Platform is $100,000 or more. You’re better off buying USDT through exchanges and brokers if you want smaller amounts.
The Tether Platform has been careful to comply with government regulations, and it has taken steps to limit the purchase of USDT in a handful of countries deemed “high risk”. These countries are Cuba, Crimea, North Korea, Iran, Pakistan, Singapore, Syria and Venezuela. The Tether Platform also doesn’t serve US residents and corporations. However, it is still possible for US residents to buy USDT from crypto exchanges and brokers.
If you want to buy USDT without ID, then you need to cut out the middlemen and find individuals willing to sell their tokens. You can easily buy USDT anonymously if you don’t involve brokers and exchanges, and use P2P platforms but finding a willing seller may be challenging.
As a stablecoin, Tether is not an asset that should be held as a long-term investment. You don’t buy USDT to get rich but you buy it to bridge the gap between fiat money and cryptocurrencies.
If you want to know how much it costs to buy Tether, then check out our Tether Price Page for more information. We cover everything you need to know, including historic price movements, who is buying Tether, and what’s the best price to buy USDT.
Tether’s biggest selling point is that it makes it easy for people with fiat money to access cryptocurrencies. It enables exchanges, brokers, payment processors, crypto ATMs and financial services to conveniently use fiat currencies on the blockchain.
The Tether Platform’s goal is to make USDT usable on any platform that accepts digital currencies. Currently, USDT is a great payment option for buying or trading other cryptocurrencies, especially if you live in a location with limited payment options on broker or exchange platforms.
Tether is an incredibly popular cryptocurrency, so there are many ways to sell USDT. The easiest way to offload your USDT tokens is through broker or exchange platforms. You can trade your Tether for Bitcoin, Ethereum, Ripple and more. Some exchange platforms can also buy your tokens for fiat money.
Another alternative is to use USDT to buy CFDs. For example, USDT/USD margin trading is popular on many broker platforms due to Tether’s stability. It’s relatively easy to sell CFDs on these platforms.
In this section, we will provide you with three crucial tips for purchasing Tether.
Selecting the appropriate time to purchase Tether is essential, as the performance of the token will vary massively in bull and bear markets. It is therefore important to research the token and any market issues extremely diligently.
Different platforms set varying fees for buying Tether, and it is therefore essential to compare costs if you want your trading to be as cost-effective as possible.
Safety and security are always issues to consider when purchasing any cryptocurrency, and this definitely applies to Tether. Searching for a platform that prioritises safety and encryption will definitely facilitate your trading process. Features such as customising user profiles and cold storage can add protection, and are definitely to be encouraged.
There are several other ways to purchase Tether that we have yet to mention in the article. The main one is depositing US dollars with Tether Limited, the company behind Tether, and receiving USDT tokens in return. Tether ATMs will probably begin to appear in the foreseeable future.
Tether is a major cryptocurrency token, and one that promises to remain a popular trading mechanism for many years to come. Its advantages are well-documented, and this has played a major role in its rapid ascent to the top five cryptocurrencies by market capitalisation.
Tether currently supports US dollars, Euros, and the offshore Chinese yuan.
One of the intuitive ways that Tether achieves this is to anchor itself to real-world currency; hence the name Tether. Tether tokens are also backed by reserves.
Tether has been praised as being one of the most secure cryptocurrency projects, being built on revolutionary and cryptographically secure open blockchain technologies. Tether tokens can be securely stored, sent, and received across the blockchain.
While Tether has become a major cryptocurrency, it is yet to be as accepted as Bitcoin. But its developers intend for Tether tokens to be usable everywhere where you can use digital currency, and in many places where digital currencies are not currently accepted.
Going through the Know Your Customer form and approval process is required to issue and redeem all currencies with Tether.