How to Start Using Tether (USDT)
Cryptocurrencies are known for their volatile nature, which makes it risky to invest. However, there are always different methods that you can use to deal with this issue, and one of them is Tether (USDT).
This is still a cryptocurrency, but it allows you to avoid the volatility of others as it is pegged to actual currency. You can use it to park your crypto when not actively investing, and you can also make transactions like converting USDT to PKR. But what exactly is it, and how can you get started?
We’ll let you know everything you need to.
What Is Tether (USDT)?
Launched in 2014, Tether (USD) is among the most popular stablecoins in regards to the volume of transactions. A stablecoin is a cryptocurrency pegged to a real-world currency, also known as fiat currency, such as the US Dollar or Euro.
In the case of USDT, it means that for every one USDT, there’s an actual real dollar kept in reserve. This is done by Tether Limited, the company that came up with the revolutionary idea of stablecoins.
The reserves are used to ensure that USDT keeps its value despite what crypto market forces dictate. Its actual value is only affected by the value of the US dollar, so investors can use USDT to hedge against the volatility of their crypto investments.
USDT therefore bridges the gap between blockchain assets and fiat currencies while offering stability, transparency, and low fees for USDT users.
How to Start Using
If you want to take advantage of the stability that USDT provides, below is how you can go about it.
Select Your Crypto Exchange
The first thing you need to do is select a cryptocurrency exchange. These are the mediums that make it possible for people like you to buy and sell crypto, and they include names like Binance and Kraken. However, note that you will be trusting the exchange you choose with your money. As such, you need to choose a reputable one. Ensure that you also confirm that it supports USDT as well as any other crypto you are interested in. Note that these exchanges also vary greatly when it comes to the amount of fees they charge for a single transaction.
Once you select one, you can then create your account. The exchange will ask for details necessary for KYC, such as your ID. You can then add the method you’d like to source funds from, such as your payment card.
Place your Order
Now, it’s time to do the actual buying. Since you now have an exchange and a verified account, you can go to the trading section. It should be labeled as either “Exchange” or “Markets.” It can also be as simple as “Buy Crypto.” Here, you will have an option to choose the funding method. If you have other crypto, you can also choose the pair you want. For example, if you have Ethereum, you can use it to buy USDT by selecting ETH/USDT.
Store Your Tether
Now that you’re the newest owner of Tether, the next step would be securing your crypto in wallets. While your exchange will give you a default wallet, it’s not as secure as your own. You should therefore transfer it unless you want to continue trading.
Here are some types of wallets you can consider:
- Hardware Wallets: These are ideal if you want to store Tether offline. They require a physical storage device, like a USB stick.
- Software Wallets: These are ideal if you want to access your investments online wherever you are. They can be an app or website.
- Paper Wallets: Paper wallets have your private and public keys printed out and then deleted from the servers. They are a type of offline storage.
Note that all these types vary in terms of the level of security, ease of use, and functionalities provided.
How to Use Tether (USDT)
Once you have your USDT, you have several options. The first one is of course taking advantage of the stability offered to park your crypto. This way, you won’t have to worry about sudden price drops. You can also use your USDT to trade on the exchange and make payments to merchants that accept crypto. However, keep in mind that your USDT won’t increase in value just by having it, like any other crypto would.
