What is USDT?
The word Tether is translated as “rope” or “leash”, which means being bound to other currencies or backed by other assets in the context of digital currencies. And this is the main point of the Tether cryptocurrency. USDT is a stablecoin, a digital currency that is backed by reserve currencies and has minimal exchange rate volatility. In essence, Tether (USDT) is a digital asset that links cryptocurrencies to fiat money, providing the benefits of crypto assets while not being subject to the volatility that is inherent to them.
Tether Limited has reserve assets; they provide each USDT token in a 1:1 ratio (dollar, euro, and yen). Given this ratio, the supply of Tether coins is only limited by the company’s physical assets. The USDT cryptocurrency can be used to exchange and store valuables. Any amount in dollars, euros, Japanese yen, and other fiat currencies can be converted into the USDT cryptocurrency to easily exchange, sell, convert or buy other assets.
In the bear market, when the price drops, traders can convert their cryptocurrencies into USDT coins, thereby hedging risks.
- The reliability of the fiat reserve is demonstrated in daily reports. Such transparency shows that all USDT units are in line with the size of the reserve.
- Stability. Each token is backed by a fiat currency, which ensures its stable value in a ratio of 1:1 to a fiat asset. Also, Tether solves such difficulties as depreciation, chargeback risk, intermittent fiat currency conversion, and other problems that service providers face when accepting payments in cryptocurrency.
- The open Tether blockchain allows using the features that provide transparency and security to the blockchain.
- If you use cryptocurrency exchanges, Tether can facilitate the exchange of crypto assets. Pairs with Tether provide fast movement of cryptocurrency and its conversion without long checks and confirmations that traders regularly face when trying to convert a fiat currency into crypto.
- Tether provides protection for digital currencies from rate fluctuations and high volatility, which is ensured by binding the USDT rate to fiat currencies.
USDT is pegged to the underlying asset, the US dollar, so its price is always around $1.
The prospects for the development of the Tether project are quite rosy, as it is the most used stablecoin on the market. The daily turnover of coin trading is several times higher than that of Bitcoin.
Tether simplifies the exchange and conversion of currencies on exchanges, and the coin is often used to serve transactions in applications. When this technology is used everywhere, we will take a fresh look at the use of cryptocurrencies in everyday life.
How to buy USDT?
You can buy USDT on the WhiteBIT cryptocurrency exchange. To do this, you need to have a registered account with a positive balance. You can acquire cryptocurrency in several ways:
- get it for another crypto or fiat via the Exchange service;
- use the Bitcoin Global P2P platform;
- activate the WhiteBIT Code;
- use the Basic or PRO Trade page to place an order.
You do not need to open an external USDT wallet to purchase a coin. The coins will be credited to your balance on the exchange.