If you’re new to the crypto space and wondering what all the fuss is about Tether USDT, we’re here to help by answering frequently asked questions about it.
There’s a lot of information on the internet about the coin, and as a beginner, you can get swept away by false info.
Tether USDT ranks among the top 5 most popular cryptocurrencies. It’s one coin that is liked by most crypto investors, both beginners and veterans alike, because of its stability.
To help newbies understand the coin better and refresh the memory of the OGs, we’re dedicating today’s blog to answering 14 of the most frequently asked questions about Tether USDT. Let’s dig right in.
1. What is Tether USDT?
Tether USDT is a cryptocurrency tied to the United States dollar; hence, it is called a stablecoin. Tether is the issuing company, while the token itself is USDT. It was launched in 2014 and has steadily become the number one stablecoin on the crypto market.
You’ll find that Tether USDT is widely known. Traders use it as some sort of anchor or buffer against the volatility of other cryptocurrencies in the market.
Read More: All You Need to Know About USDT
2. How does Tether USDT work?
Tether USDT is a stablecoin because it is tethered to the value of the US dollar. This anchorage or tethering is not just by word of mouth. The company reportedly keeps monetary reserves of whatever number of USDT coins are circulating. That’s how it maintains its value. For example, for every $1 a trader uses to buy 1 USDT, $1 is added to the reserve in cash or cash equivalents.
With Tether USDT, traders can smoothly transition from fiat currency to crypto and vice versa. In fact, it is the entry point into crypto for most new traders. Transactions with USDT across multiple blockchains are possible because the coin runs on chains like TRON, Ethereum, BNB, etc.
3. Are USDT and Tether the same?
Yes. The name of the token is USD-Tether, or USDT. Tether is also the name of the company. So, traders and non-traders often interchange these names to refer to the token.
4. Who created USDT?
In 2014, Reeve Collins, Brock Pierce, and Craig Sellars created a token that could be exchanged with fiat currency at the same value. At the time, the project was called Realcoin. Craig Sellars was a member of the Omni Corporation. The Omni chain network (the same blockchain network Bitcoin uses) became the first one on which Tether was built.
5. What are the advantages of buying Tether?
Stability: Tether (USDT) remains stable regardless of what happens in the crypto market. Its value is pegged to the dollar. This makes it a safe investment. So, traders or investors can secure their holdings by converting them to USDT.
High Liquidity: Another advantage is that Tether makes it easy to transition from fiat to crypto and back to fiat. It serves as a gateway between cryptocurrency and fiat currency.
Wide Acceptance: USDT is very popular among crypto enthusiasts and is listed on several exchanges. There are many trading cryptocurrency pairs that involve Tether. So it’s easy to acquire and trade.
Other advantages include low transaction fees, faster transaction times, and multiple-chain support.
6. Are there different types of Tether USDT?
We wouldn’t categorically classify Tether into different types. However, tether USDT as a token exists on different blockchains. So the right question would be, what are the various USDT networks? In that case, we can start mentioning the ERC-20, TRC-20, BEP-20 and the rest.
Tether was first built on Bitcoin’s Omni chain before spreading to TRON, Ethereum, etc. This feature makes it versatile, as traders can trade with the same token across different chains.
7. Is USDT Safe?
USDT is safe because it is tied to the American dollar at a 1:1 ratio. It doesn’t have perceived value alone; its value is backed by a cash (or cash equivalent) reserve worth every Tether token in circulation. After all, it is called a stablecoin for a reason which is that it is not given to volatility like the other cryptocurrencies. So, yes, USDT is safe for you to buy and invest in.
8. Can I Mine USDT?
No, you cannot mine Tether USDT. You can only buy from an exchange or peer-to-peer platform. Tether doesn’t operate with Proof-of-Work unlike other mineable cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, etc.
9. Is it Safe to Save Money in USDT?
Yes, it is safe to save your money in USDT. As has been reiterated, Tether is pegged to the value of the US dollar and as such, can withstand changes in the market. For example, if the crypto market dives into a bear run, your money will not be affected if it is in USDT. So, it’s even wise to save your money in USDT.
10. Where Can I Buy Tether?
You can buy Tether USDT on cryptocurrency exchanges, crypto on-ramp platforms, and digital trading platforms that support cryptocurrency trades, specifically USDT. Apart from traditional exchanges like Kraken, Binance, Coinbase, and their counterparts, the easiest platform to use is Prestmit.
Prestmit is a digital trading platform that supports crypto trades. It simplifies the process of buying or selling cryptocurrency with fiat, especially Naira or Cedis. You don’t need to look at complex charts or lists of rates on traditional exchanges.
The best part is that you can also use other digital assets like gift cards to buy Tether! How cool is that? Download the app and sign up for an account to get started.
11. How Much is Tether in Naira?
On exchanges, the price of Tether differs and is dependent on the exchange rate. But using the Prestmit Rate checker, which is constantly updated as prices change on the market, 1 USDT sells at N950 at the time of writing.
12. How to Buy Tether?
Here is a quick guide on how to buy USDT.
- Pick a platform. It could be a centralised exchange, a P2P platform or a digital trading platform like Prestmit. You can choose one based on what you intend to use to buy USDT. You can buy with fiat (Naira for Nigerians), gift cards or other crypto.
- Sign up for an account and download the app if available.
- Navigate to the trading section for regular exchanges. For p2p platforms, scour the list of offers for one that suits your budget and matches your preferred payment mode (cash, gift card or crypto).
- Initiate a trade and follow the prompts to complete your transaction.
13. Can You Transfer USDT to a Bank Account?
You can transfer USDT to your bank account by converting it back to fiat money. Now you can either leave the money in USD or convert it to your local currency (in this case Naira for Nigerians and Cedis for Ghanaians). You will need to have an account on a crypto off-ramp which may be an exchange or a digital trading company. I’ll advise you to go for the later as it’s easier.
14. What is the best USDT wallet?
The best Tether wallet is one that supports most or all the different USDT networks. Many cryptocurrency wallets support Tether. Some support USDT issued on a particular network only, while others support Tether on multiple networks. You can check out the top 7 best Tether wallets.
Tether is every crypto trader’s best friend. It’s the safe lock that maintains the value of assets regardless of the state of the crypto market at any given time. Tether USDT is tied to the American dollar at a 1:1 ratio, which is the source of its stability.
We have provided comprehensive answers to the most frequently asked questions about Tether USDT and additional resources to help you understand the token better. You’ll become an expert on all things USDT by reading through them.