Tether (USDT) is a cryptocurrency that is linked to the US dollar (USD). Tether is a stable coin, which means that it is pegged to an underlying asset – in this case, 1 Tether token is pegged to 1 USD, which is held in Tether’s reserve. Tethered assets can be held in cash or in the form of loans to affiliates. This provides investors with a higher degree of stability in their investments, as the price of Tether rarely moves very far from a value of 1 USD. This makes Tether a popular intermediate coin for investors who trade other cryptos on a daily basis and want to keep a stable coin in wallets between trading activities.
There are dozens of exciting cryptocurrency projects In the market, ranging from stablecoins like Tether and USD Coin to lesser altcoins like Chainlink and Monero, that can offer services to investors. Our guide will teach you how to invest in the cryptocurrency market, where to keep your tokens, when or how to sell, and other useful details.
Step 1: Open an online account.
To buy or sell a cryptocurrency, the first move is typically to open an account with a broker who provides market access for the coin or token you’re interested in. Crypto brokers are similar to stock brokers in that they have the right to buy and sell coins on your behalf.
Your trading experience will be decided by the broker you select. When determining which broker to deal with, keep the following features in mind:
- Trading platform: if you are a new investor, you may prefer a more streamlined experience. If you are an advanced trader, you may want a trading platform with a wealth of charting and analytical tools.
- Asset Access: Although most cryptocurrency brokers allow you to invest in major cryptos like Tether and Bitcoin, each broker selects its own list of altcoins. Browse coin offerings before choosing a broker to ensure you can invest in all cryptocurrencies you are interested in.
- Fees and commissions: When you buy cryptocurrency, some brokers can charge you a fee or commission. Often check a broker’s fee schedule to see what you’ll be paying each time you place a buy or sell order.
Are you unsure where to begin? Have a look at two of our favorite Tether-accessible choices.
BlockFi’s mission is to empower its customers to earn interest, borrow cash, and trade crypto from the most trusted financial services providers in crypto. And there are several ways that BlockFi steps itself ahead of similar services.
It’s an independent lender, but BlockFi customers benefit from the backing of financial giants like Fidelity and SoFi. This means you have a list of products available to you that mirror those you would find at a large corporate bank.
BlockFi goes to a long extent to protect its customers by complying with U.S. laws and financial regulations. It remains independent to offer the best prices, but works with established institutions to ensure your crypto assets are consistently performing at an optimal level.
The diversified approach means that your assets are safe. Since it is backed by a large amount of collateral, BlockFi guarantees that you can always access your money easily.
If you want a greater range of coins, you can sign up for a Kraken account. Kraken gives you the ability to buy and sell 50 different cryptocurrencies, including well-known coins (such as Bitcoin and Litecoin), altcoins (such as Chainlink, Tezos, and Yearn Finance), and stablecoins (such as Yearn Finance) (like Tether and USD Coin).
Kraken, in addition to offering a greater range of coins, has a tiered fee structure that is more competitive for large investors than Coinbase. Kraken also has a full-time customer service team that will assist you with your account 24 hours a day, 7 days a week.
Step 2: Buy a wallet.
You can pick a wallet after you’ve selected a broker and opened your account. Private wallets are services or physical devices that give you a collection of private keys to secure your coins or tokens. Cryptocurrency wallets are divided into two categories:
- Hot Wallets: These are digital cryptocurrency wallets that are linked to your machine or phone. To gain access to your coins, your hot wallet must be linked to the internet.
- Cold Storage: This are physical devices that hold your cryptos when they are not in use. Although cold storage wallets do not allow you to access as many coins as hot wallets, they do provide you with the highest level of protection for your money.
We suggest putting your coins in a physical cold wallet, as opposed to a hot wallet, since cold wallets provide better help. Below are a couple of our favorite cold wallets.
Ledger Nano S : Affordable
The majority of cold wallet options cost well over $100, making them unaffordable for all investors. Consider the Ledger Nano S if you want a safe way to store your coins without breaking the bank. With over $1 million in revenue, the Nano S is one of the most common cold wallets. It’s also a very cheap option, costing just $51 if purchased via Amazon.
SecuX V20 is the best choice for touchscreen access.
Another common alternative is the SecuX V20 wallet, which supports Bitcoin, Ethereum, Tether, and any ERC-20 token you can own. The SecuX V20 has a 2.8-inch full-color touchscreen that lets you monitor and control your coins without having to connect to a device. The SecuX V20 also has a simple, elegant user interface that is simple to navigate even for newcomers.
Step 3: Make your purchase.
After you’ve selected a wallet and funded your brokerage account, it’s time to place your first order to buy Tether. As with buying a share of stock, your crypto broker will likely offer you a number of order options that allow you to control the price you pay for each coin. Some common order types you may see are:
- Market Orders: A market order instructs your broker to purchase a certain number of Tether coins at the current market value. You don’t know the price you want to pay for each coin when you put a market order. Your broker will conduct the order at the current Tether market price. Market orders are likely to be filled than other orders, but you have little control about how much each coin costs.
- Limit Orders: A limit order instructs your broker to purchase a certain number of Tether Coins at a specific price. For example, you can set a Limit Order to buy 100 Tether for $0.99 USD. Your broker will fill your order only if it is possible to buy each coin for 0.99 USD or less at a time. If the price goes above 0.99 USD, your broker will not fill the order. Limit orders are filled less frequently than market orders, but they allow you to control how much you pay for each coin.
After you place your order, your broker takes it and fills it according to your instructions. You will see coins in the wallet after your order is closed.
Trade or sell your cryptocurrency
Tether is different from most cryptocurrencies because it is tied to an underlying asset. One of the main reasons why Tether appeals to investors is that it rarely moves from a value of $1. This means that it is usually not beneficial to hold Tether for the longest term.
Tether’s price seldom deviates from $1 USD.
Tether is the most widely used cryptocurrency as a middleman. Let’s say you want to buy Chainlink with fiat currency. After you complete your order, the price of Chainlink increases and you decide that you want to sell your coins. It is often cheaper to convert your Chainlink tokens into Tether instead of going straight back to flat currency.
You can then go ahead and store your Tether in your cooler bag if you think you won’t be making any more purchases for a while.
If you want to trade frequently between Tether and another cryptocurrency, you’ll need a fast, responsive broker.