Tether is a stablecoin, which means it has a fixed value pegged to the US dollar.
It was created by the company Bitfinex, which is also responsible for the exchange of Bitcoin and other cryptocurrencies.
Tether is a virtual currency that allows you to convert between USD and its own token (USDT).
The idea behind Tether is to provide a way for investors to trade their assets without having to worry about fluctuations in the price of the underlying asset.
You can buy Tether using credit cards or bank transfers. If you want to purchase Tether, you will need to go through an intermediary called Crypto Capital.
They offer a variety of services such as buying, selling and trading cryptocurrencies.
However, this does not mean that you are limited in how you can purchase Tether, as there are other means you can use.
What Is Cryptocurrency?
Cryptocurrency is a form of digital payment that does not rely on banks to confirm your identity or transactions.
It uses a peer-to-peer system, which means you can send and receive money from anywhere in the world.
Instead of using physical money for its exchanges and transactions, cryptocurrency uses digital currencies that are issued through an online database, which records the different transactions.
When you activate cryptocurrency funds, the transactions are saved in a public record and the money is stored in a digital wallet.
The program was named after its encryption abilities, which are used to verify different transactions.
This means that the system uses advanced coding to store and transmit its data between wallets and the public record.
The aim of this is to provide security to investors and users.
One of the first (and most famous) cryptocurrencies was Bitcoin, which was developed in 2009 and remains one of the best.
These currencies are commonly used for trading, profits and interest.
What Is Tether?
Tether is a kind of cryptocurrency and the third-largest cryptocurrency in the world, with the currency being issued by Tether Limited.
The stablecoin uses its own token (USDT), which is equal to the value of 1 USD.
Because of this, the value does not fluctuate like other notable currencies, with a single token being worth 1 USD.
For this reason, the currency is classed as a stablecoin.
Since Tether mimics the US dollar, it is not recommended for those hoping to invest in the price going up.
However, the currency still comes with a range of uses, such as purchasing rival cryptocurrencies, exchanging funds and earning interest.
Tether tokens (USDT) were first developed by the crypto exchange company BitFinex, and are the native currency of the Tether network.
This means that all transactions are made under the USDT symbol.
In October 2021, USDT became the fifth-largest cryptocurrency in the world by market capitalization, with the currency now being worth more than $68 billion dollars.
Since its launch, Tether has become the third-largest cryptocurrency in the world, even though it still remains a lesser-known currency in a $3 trillion market.
Is Tether Safe?
The crypto market can be a volatile place, where you can earn a fortune and then lose it the next second.
However, Tether is somewhat unique in that it doesn’t come with these obstacles, as the currency never fluctuates.
When compared to other cryptocurrencies, Tether comes with few problems, which means it is a safe currency to buy.
In a recent survey, Tether was ranked as the third-largest currency in the market cap, with a worth of $62,631,619,572.
Because of this, the rising popularity of Tether has caught the attention of investors across the globe, with the currency promising good returns in 3 -5 years.
For this reason, Tether has become a point of discussion among investors and is now being watched more closely.
How To Buy Tether
Tether can be purchased from most global exchanges, with the stablecoin being compatible with most cryptocurrencies and fiat currencies, such as pounds, euros and dollars.
To purchase Tether, you will need to create an account with a cryptocurrency exchange that offers the service.
Notable exchanges include Coinbase, Kraken and Binance – not only are these exchanges respected, but they also feature excellent security procedures and decent fees.
In most cases, creating an account on these exchanges will require you to submit identification and security information.
Once you have created an account, you will be able to purchase Tether using one of the following methods – debit card, credit card, PayPal, bank account transfer.
We would recommend purchasing Tether with a bank account transfer, as this method has the lowest transaction fees.
However, a bank payment can take some time to process and reach your crypto exchange account.
While on the other hand, debit cards, credit cards and paypal are faster but come with the drawback of additional fees.
Since Tether is a stablecoin, it is advisable to avoid the additional fees and pay with the transfer.
When the balance has been accepted into your digital wallet, you will be able to purchase Tether in your own time.
It is important to remember that you can hold the currency for a long time, as well as use it to purchase other cryptocurrencies or earn interest.
Despite Tether being a protected cryptocurrency, the company that issues it (Tether Limited) has been at the forefront of several controversies.
For example, the company stated that every Tether currency was backed by 1 dollar.
However, this statement was later disproved when the company released official information concerning its reserves.
These documents showed that only 2.9% of Tether was back in cash, while the rest was supported commercially.
Because of this, Tether was later accused of covering up information associated with the crypto exchange BitFinex.
However, this case was later closed and the owner of Tether Limited paid a fine of $18.5 million dollars.
Another notable controversy was later addressed by Tether critics, who claimed that the currency was being used to inflate the cost of Bitcoin.
Because Tether’s currency can be redeemed for USD, the stablecoin can be used as a powerful tool to avoid the usual fluctuations and volatility associated with the cryptocurrency market.