The Best Crypto Exchanges to buy and hold Tether (USDT) tokens

The Best Exchanges to buy and hold Tether (USDT)

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Check out the 3 best exchanges to invest in Tether (USDT) today.

The United States Dollar Teder (USDT) is a cryptocurrency token issued by several blockchain protocols. A stablecoin, a type of cryptocurrency designed to maintain a stable or unchanging market value as a fixed asset.

For USDT, the market value is pegged to the US dollar. Other stablecoins such as EURT and CNHT are also designed to maintain a sustained price.

Popular cryptocurrencies such as BTC (Bitcoin) and ETH (Ethereum) are constantly subject to wide volatility as seen in their market prices.
In contrast, the goal of USDT is to safely store value rather than speculation, and to maintain a fixed price that can be used as a stable medium of exchange.

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What is Tether, USDT?

Tether (interchangeable with USDT) was first launched in 2014 by Tether Limited, a company that operates and issues assets on a blockchain basis.

All assets issued by the company are linked to the market price of traditional fiat currencies. Since its launch, Tether USDT has become the most used stablecoin in the world and continues to grow in popularity. This was achieved despite some controversy surrounding Tether in the early stages of the project.

These days, Tether’s popularity is driven primarily by its ability to provide liquidity and hedging against market volatility, making Tether befitting its name as a stablecoin.

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How does Tether (USDT) work?

Tether operates as a digital token based on several blockchain protocols, including Bitcoin, Ethereum, Algorand, OMG, EOSIO (EOS), Tron (TRK), and the SLP blockchain. These options allow you to create more assets on the underlying blockchain. In fact, the Ethereum blockchain currently holds the largest share of USDT’s market.

To better understand how USDT works, we need to consider how USDT is created. Tether was originally issued as an omni-layer protocol. The Omni-Layer Protocol is an open-source and decentralized asset platform built on top of the Bitcoin blockchain. This protocol allows Tether Limited to create and destroy tokens in its holdings based on the amount of US Dollars (USD) that matches the supply of USDT.

In theory, every token has US dollars equal to the token’s value as collateral for the company’s reserve. According to Teder Limited, it is technically possible to track and report on the total number of Tether tokens in circulation through the protocol. However, this claim has become one of the biggest criticisms of USDT as Tether Limited is not willing to be audited.

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What makes Tether (USDT) so important?

Basically, the main purpose of Tether is to provide a hedge against market volatility. If you are not yet familiar with the world of cryptocurrency, you have probably learned that market volatility makes cryptocurrency trading risky.

A simple way to describe volatility is to say how much an asset’s price fluctuates over time. In other words, crypto assets are volatile at any time because their prices tend to rise or fall in aggressive and unpredictable ways.

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Why You Should Buy Tether (USDT)?

1. Stable price (no price volatility)

Price stability is the opposite of price volatility. As such, Tether is designed to provide price stability to investors and traders, and may be the best alternative to fiat currencies. This eliminates the confusion associated with other cryptocurrencies, and the risk of potential price spikes and plunges.

To clarify these risks, consider the scenario below between a seller and a foreign investor.

• A foreigner sends 1 BTC worth $18,000 in exchange for the prize.
• BTC received 1 hour later at a 10% drop.
• You (recipient) are losing money due to the unstable price of BTC.

Tether allows you to transfer real money to digital cash, so paying in USDT gives you the near-accurate last price of a cryptocurrency with no loss.

2. Ultra-fast transaction times

Tether speeds up business transactions. This eliminates the long time it takes to complete a transaction using USD fiat. Traditionally, with most banking systems, it takes 1-4 business days to complete a transaction in USD. On the other hand, USDT trading is done in minutes.

3. Very attractive transaction fees

Tether trading costs very little. Transmitting USDT is much cheaper than sending it via SWIFT (Society for Worldwide Interbank Financial Telecommunication). SWIFT’s fees range from $20 to over $30.

Additionally, if you use fiat currencies that are not supported by SWIFT, you may incur additional fees. This includes both currency exchange fees and a percentage of remittance fees.

4. Security and Transparency

The Tether platform is built on the best of blockchain technology. Financial institutions worldwide are seeing blockchain as providing the most secure and transparent data technology that can be trusted while complying with international compliance standards and regulations.

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How to buy Tether (USDT)?

USDT can be exchanged with your own credit card or purchased using other crypto assets. For example, the following exchange platforms (= cryptocurrency exchanges) Bybit offers a secure and instant way to buy USDT with a credit card or with Bitcoin, Ethereum or any other supported cryptocurrency.

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How to hold (store) Tether (USDT)?

You need a USDT wallet to keep your assets safe. But what is a USDT wallet? Simply put, a USDT or Tether wallet is a secure digital tool for interacting with your assets (including custody, account pricing, and transfers).

You can use different types of wallets. Some of these wallets also have software applications available for mobile use.
Some of the wallets are web-based, and now we have hardware wallets.

Most commonly used wallets – Mobile-based wallets have a unique public address that you can use to receive funds from others.
A popular Ethereum-based (ERC-20) USDT address is “Ox… It starts with ”.

Like a traditional bank account number, this address identifies you as the owner and beneficiary of the funds. This wallet also provides a private key to access and use your Tether funds.

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What can I do after buying Tether (USDT)?

There are many things you can do with USDT. These include:

Invest for a long time or keep it in your cryptocurrency wallet

You may decide to put Tether in your wallet and wait for the right opportunity to trade. Bybit is a great safe place for long-term storage of Tether tokens. Bybit uses a cold wallet, which is theoretically more secure as funds and keys cannot be accessed over the internet.

USDT token transfer or transfer

You can easily send or transfer Tether tokens anywhere in the world. This is a faster and cheaper way to move money.

Use or buy together

Many companies are now accepting Tether as a viable and reliable payment option, especially because Tether is pegged to the US dollar.

Trade USDT as fiat currency or other cryptocurrency assets

You can easily exchange Tether for real money. You can also convert Tether tokens to other cryptocurrencies. For example, Bybit fallows you to trade Bitcoin, Ethereum, and more with Tether.

Donate USDT Tokens

Many charities around the world accept Tether as a donation. If you use USDT as a stablecoin, especially when donating to international organizations, you can donate as much as the exact amount of fiat currency you want to donate without worrying about the exchange rate.

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USDC vs USDT – What are the Differences and Similarities?

USDC or USD Coin is a type of stablecoin pegged to the value of another US dollar similar to USDT.

It has the same characteristics and can be used as an alternative to USDT.

The two projects have a lot in common. The most striking denominator for them is that both are stablecoins.
Separately, we also share some similar values:

• Both are controlled by a central issuance company that regulates and maintains the issuance volume. Tether Limited is responsible for issuing USDT, while USDC is managed by Circle Limited and Coinbase.
• Like USDT, USDC can be bought with a credit card or traded with Bitcoin, Ethereum and other cryptocurrencies.
• The main ledger on which they are issued is the ERC-20 (Ethereum-based ERC-20) blockchain. Both are also available on several other platforms.

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USDC vs USDT – Arguement

Serious questions have been raised about the legality of Tether tokens in the cryptocurrency community. Tether Limited claims that the more than 19.7 billion tokens currently in circulation support 100% of Tether’s US cash holdings. In essence, the company claimed that each USDT in circulation was backed 1:1 by a dollar or its equivalent in cash.

However, many critics lament Tether’s inability or hesitation to verify this claim. The reason is as follows.

In November 2017, Tether Limited announced that a hacker had stolen nearly $31 million worth of Tether from its Treasury wallet. A few months later, they didn’t do the necessary audits to ensure that their reserves and real assets were the same. Instead, it cut ties with the auditing company. Tether also did not disclose its banking relationship with the Bahamas Deltech Bank.

In October 2018, Tether Limited announced in a letter that it had about $1.8 billion in foreign exchange reserves at Deltek Bank. It is assumed that such funds would be sufficient to cover all tether in circulation at the time. However, the company did not respond to an official audit by a reputable company.

In April 2019, ifinex, the parent company of Tether Limited and owner of the Bitfinex exchange, was accused of concealing $850 million in corporate funds from investors and clients. According to court records, Bitfinex allegedly stole $700 million from Tether’s cash reserves tied to Crypto Capital.

Controversy over some related stories is particularly worrisome, such as Bitfinex and Tether’s inability to conduct the necessary audits. Do your own research and always exercise caution when trading with cryptocurrency assets.

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