The popularity of stable coins is constantly increasing because they are very convenient to use: the rate of tokens is equal to the fiat currency and exchange fees are usually minimal. The world’s first stable coin was Tether, created by Pierce, Collins & Sellers in 2014.
If you are going to buy USDT with credit card in the near future, then be sure to read the main details about this token — namely, its essence, main features, purchasing & storing issues, and prospects.
What Is Tether?
In general, Tether is the electronic analog of the US dollar. The Bitcoin blockchain was taken as the basis, but the developers were not going to compete with it. The goal of USDT was to replace fiat money in the cryptocurrency world. An investor doesn`t need to lose funds on commissions by converting a real US dollar into its virtual variation — USDT is just its reliable electronic counterpart.
Tether`s Key Nuances
- Tether was designed specifically to integrate traditional money into the blockchain by converting it into a digital asset.
- According to the company, the peg is supported by a reserve: for every 1 USDT issued, there is 1 USD held in a bank deposit.
- There are currently 709 million USDT coins in circulation. The last stage of the emission took place at the end of March 2020: 720 million new USDT tokens were created.
- After integrating with the Ethereum network and creating ERC20 standard tokens, the blockchain introduced the possibility of using smart contracts (thanks to Liquid Protocol).
- The main advantage of cryptocurrency is its stable exchange rate and very low commissions.
Buying & Storing USDT
The easiest option to buy Tether is to register on its official website, go through verification, and then purchase the required number of tokens. You can also use exchange platforms like Jidex:
- select a Visa or MasterCard as a withdrawal resource;
- specify the amount of money to exchange;
- select USDT as the currency for purchase;
- replenish the system wallet with the required amount and receive tokens within 15-30 minutes.
To store USDT tokens, like any other digital coins, you need to create a special wallet that supports this cryptocurrency.
The Main Prospects
In general, the purchase of USDT is considered a fairly promising investment due to a very stable exchange rate and favorable commissions. On the other hand, the system lacks complete anonymity, so there is no 100% security for user data and funds. However, experts still believe that Tether will become as usable as Bitcoin within the next few years if the flaws are quickly corrected.