How to Buy Tether - Where to Purchase USDT?
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 before you commit to buying or trading Tether.
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Why Trade rather than Buy Tether for Cheap and Fast Returns?
You Don’t Need a Wallet:
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods:
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy:
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top Tether Brokers
The easiest way to buy Tether is through online cryptocurrency brokers. Thanks to its high market capitalisation, several reputable brokers offer USDT. Many have been operating for years now and have cultivated solid reputations.
How easy it is to buy Tether largely comes down to your location and how much you’re willing to spend. If you think now is the right time to buy Tether, then find a broker platform that works in your country and has USDT in its portfolio.
5 Things to Consider if you Want to Buy Tether
There are a few considerations you should take into account before you hit that “Buy” button and make your first Tether purchase.
1. Carefully choose your preferred secure payment method
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.
2. Will you need to set up your own wallet?
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.
3. Comparing costs
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.
4. Safety and security
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.
5. Can you understand and navigate the platform?
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.
Ultimate Beginner’s Guide to Trading Tether
What is a Tether Broker?
A cryptocurrency broker functions as an intermediary between the crypto market and traders looking to make investments. Broker platforms facilitate the buying and selling of cryptocurrencies and offer traders financial derivatives that speculate on the price movements of cryptocurrencies.
What is a Tether CFD?
CFDs, or Contract for Differences, are financial instruments that are pegged to the market value of an asset. A CFD is a contract made between a broker and an individual that speculates on whether the price of the tethered asset will rise or fall after a set amount of time.
Since Tether is a stablecoin with a constant price, a CFD pegged to its price would be worthless. However, USDT works great as a trading pair for other cryptocurrency CFDs. For example, a user with USDT could use their tokens to open a Bitcoin CFD or an Ethereum CFD with a broker. The payout would be in USDT.
What is the Benefit of Tether Regulation?
Tether has been careful to comply with all government regulations and compliance in order to maintain its position as a secure and transparent stablecoin. It complies with economic sanctions and regulations that prohibit transactions from people in a handful of countries. It may seem excessive, but complying with regulation protects investors by ensuring there is no illegal activity on the Tether network.
What is the Best Payment Method for Buying Tether?
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.
The Verification Process for Trading Tether
KYC verification is a requirement on reputable exchange and broker platforms. It involves providing a copy of a government-issued ID and sometimes some form of proof of address to verify your identity and location. It is usually part of the sign-up process.
KYC may feel invasive, but it’s a necessary step to protect platforms and their users from criminal activity like money laundering and fraud. It’s also a requirement by financial regulators and is a good indicator that a platform is regulated and secure.
Tether: Long vs Short Term Investment
There are two broad approaches to investing in cryptocurrencies. The first is short-term investing, which involves buying a cryptocurrency to sell in a few hours, days, or weeks after its value goes up to turn a quick profit. Short-term investing is the basis of numerous trading strategies, including day trading, scalping and swing trading.
The second option is long-term investing, which involves holding a crypto asset for a longer period of time (months or even years) with the expectation that its value will shoot to the moon. Investors who take this approach use fundamental analysis to make an educated guess on the direction the market price of an asset will trend.
Short-term and long-term investment strategies work best with cryptocurrencies whose market price is dynamic. Tether is a stablecoin, and with some rare exceptions, the price of one USDT token has always been in the vicinity of $1. It’s not a great asset to hold as a long term investment.
Why Buy Tether rather than Trade?
Tether is meant to enable users to perform transactions with fiat currencies across multiple blockchains. The fact that 1 USDT is always equivalent to $1 shields it from the inherent volatility of most cryptocurrencies. You can’t really buy Tether cheap because the price of one token is almost always going to be near $1.
Traders typically hold USDT as a store of value before converting it into fiat or another cryptocurrency. It’s not a great asset to trade for profit because its value is always constant. While there have been some small USDT price changes relative to the US dollar, those fluctuations don’t occur often enough to make trading profitable.
That said, there are still plenty of platforms where you can buy USDT instantly. Brokers and exchanges typically offer the fastest Tether purchase. Please note that buying USDT requires research into wallets for storage and good security practices to keep your assets safe.
What Fees are Involved in Buying Tether?
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:
- Verification Fee: If you want to buy Tether directly from the Tether Platform, then you have to pay a non-refundable verification fee of 150 USD to open an account. The fee is meant to ensure that only serious traders will apply.
- Withdrawal Fee: Exchanges, brokers and even the Tether Platform charge withdrawal fees. It is typically a percentage (0.5% to 5%) of the amount being withdrawn, but some platforms charge a flat rate. Withdrawal fees for USDT can be quite high on some platforms, so check before you commit to using a platform.
- Deposit Fee: Some platforms charge a deposit fee. Like the withdrawal fee, it is typically a percentage of the deposited amount.
- Transaction Fee: Like all cryptocurrencies, USDT has a transaction fee that is charged by the blockchain and paid by the sender. Tether tokens exist on several blockchains, so how much you pay in transaction fees will depend on what type of tokens you hold (e.g. ERC20 USDT, Omni USDT or TRC20 USDT).
Safely Storing Your Tether
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.
What Other Coins Can I Trade or Use to Buy Tether?
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 Smallest and Largest Amount of Tether I Can Buy?
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.
Can I Buy Tether Anonymously with no ID? Is it Safe and Legal to Buy Tether?
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.
Will Buying Tether Make Me Money?
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.
How to Spend your Tether
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.
How to Sell your Tether
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.
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Frequently Asked Questions
USDT is a version of Tether that is specifically pegged to the US dollar, but there are other versions that are pegged to the Euro and Chinese Yuan.
Yes, USDT tokens that are ERC-20 compatible exist. Tether tokens were initially issued on the Bitcoin blockchain via the Omni Layer Protocol. Over the last few years, the developers have issued the tokens on multiple blockchains, including Ethereum.
The Tether Platform claims to have backed every USDT token currently in circulation. That way the conversion rate for 1 USDT is always equal to 1 USD.
It depends on your goals. Tether is by design meant to remain stable. The price of 1 USDT is never going to be worth more than $1, so it would be difficult to hold it as an investment like you would with Bitcoin or Litecoin. While Tether’s price has fluctuated, it has never gone down to less than $0.92 for 1 USDT.
The Tether Wallet is the official wallet for storing USDT. It is the Tether Platform’s primary channel for converting USDT into fiat money and vice versa.
USDT is issued by Tether Holding LTD, which is based in Hong Kong and the British Virgin Islands. Members of the company’s management team have the same roles at Bitfinex, indicating that the same people run both companies.
Even though the Tether Platform hasn’t served US residents since 2018, it is possible to buy USDT from several cryptocurrency exchanges.
Tether is a completely secure asset in terms of technology. Even though the tokens are theoretically centralised, they are issued on multiple decentralised blockchains that are known for their security, such as Bitcoin, Ethereum and Tron.