The crypto market is still highly volatile and susceptible to a myriad of factors. Their capricious behavior is a major hurdle to adoption. To protect their investments, wise participants aim for a balance between erratic and more stable assets. The Tether stable coin (USDT) was created to address this challenge.
What is Tether?
This coin has a controversial history, but it is one of the most stable crypto assets at the moment. Tether was unveiled in 2014 by two founders of Bitcoin’s Omni layer. As the name suggests, the coin is bound to a fiat (conventional) currency. It was initially called Real. Three types of Tether exist, but USDT is the most prominent. Check its current price in BTC here, as it is constantly changing.
What Makes Tether Special?
Tether’s key distinguishing feature is its connection to a conventional currency — the US dollar, the euro, the yen, etc. Otherwise, it is similar to other coins. Tether is based on its own protocol, and the native tokens are traded under the USDT ticker symbol.
Tether is a coin collateralized by fiat. It works as a bridge between the physical and crypto monetary pools. As of now, USDT is the third cryptocurrency by market cap — it has exceeded $80 billion. The trading volumes have been rising in recent years.
So, why convert BTC for USDT?
First, it gives you a more stable asset, which is crucial in times of market volatility. Many rookies who buy a cryptocurrency for the first time choose Tether over Bitcoin. Thanks to the bond with fiat, converting BTC to USDT is a piece of cake. Liquidity is not a problem, so you shouldn’t encounter any delays.
Tether is commonly chosen as a store of value. Investors who want to limit their exposure to high volatility buy Tether as a safe haven. This token is rarely used for speculative trading. As of now, 1 token costs exactly $1.00, and the price fluctuates only slightly. For example, on March 10, 2022, it briefly fell to $0.996157.
Types of Stablecoins
As of now, you can exchange cryptocurrency for three types of Tether — based on Bitcoin, Ethereum, and TRON. These tokens exist on different blockchains and cannot be transferred among one another. The key identifier is the address. Here is a brief cryptocurrency overview.
USDT ERC20
This variation of the coin runs on the Ethereum blockchain. All ERC20 format addresses begin with 0x and allow storing to an Ethereum wallet. Miners get 0.001 ETH for transferring 1 USDT.
USDT OMNI
These tokens belong to the Bitcoin blockchain. Their addresses begin from 1 or 3. The miner fee for transferring 1 USDT within the system is 0.0001 BTC. It can only be stored in a Bitcoin wallet.
Tether TRC20
This token is circulated on the TRON blockchain and can be stored in a corresponding wallet. Its address begins with T. Moving 1 USDT of this format requires TRX energy or a modest amount of TRX.
Where to exchange your BTC?
You can buy Tether on dozens of the USA/EN exchanges and apps, but not every platform is reliable. The simplest, fastest, and safest way is through a platform like Changelly. Choose a trusted exchange — if you lose your private keys to your USDT, you may never be able to recover them. It is also advisable to keep most of your crypto in a cold wallet, rather than an online platform.
Buying Tether is easy as it is a commonly traded asset. The procedure on different exchanges varies slightly. Typically, you will need to follow these steps:
- In the exchange section of the site, choose Bitcoin and Tether as your pair for swapping.
- Enter the amount of BTC you wish to exchange.
- Choose between fixed and floating rates.
- Specify the address of your crypto wallet.
- Review the transaction details — the address and the amount of BTC.
- Confirm your choice and receive your Tether!
If you do not have any Bitcoin yet, buying it is also easy. After registering and verifying your account, you can purchase crypto via a bank transfer, credit/debit card, or systems like Apple Pay. This transaction should take no more than half an hour. After that, you will be able to use BTC as you wish — exchange for Tether or other tokens or keep to profit from its growth.
