What is Tether (USDT)?
In this article, we will discuss the most well-known stablecoin, USDT. Everyone is talking about cryptocurrencies, but fewer people are talking about stablecoins. USDT is a stablecoin. A stablecoin, as the name suggests, is stable. Let's take a look at what a stablecoin is, what it is used for, and how to use it.
A stablecoin is simply a cryptocurrency that is indexed. Most of the time, stablecoins are pegged to the US dollar.
There are three types of stablecoins:
- fiat collateralized stablecoins
- crypto collateralized stablecoins
- non-collateralized stablecoins
A stablecoin is useful in two main cases:
- Taking profits. For example, you bought BTC at $10,000, today it is worth $20,000. You can then exchange your BTC for 20,000 USDT to secure your profits.
- Invest in another cryptocurrency. Sometimes there isn't the BTC/crypto pair you're looking for, so going through a stablecoin allows you to bridge the gap between two cryptocurrencies.
USDT (Tether) - the main stablecoin
Tether (USDT) is a USD-pegged stablecoin, meaning that 1 Tether can be exchanged for USD at an approximate 1:1 ratio. Users can actually exchange from USDT to USD seamlessly anytime, the company Tether maintains a dollar in cash and assets in reserves for each USDT issued, as well as regulates the supply of USDT through minting and burning.
USDT does not have a maximum total supply because the amount of USDT issued is dependent on the total value of assets in Tether's reserve.
The coin was created in 2014 with the original name of "RealCoin", but was rebranded to Tether later that year. The organization behind USDT is iFinex, a company incorporated in Hong Kong that owns the BitFinex exchange. In the beginning, Tether was launched on the Bitcoin blockchain and could only be traded on that network, but after years of development and expansion, it is now available on commonly-used blockchains.
Since the birth of Tether USD or USDT, there have been more Tether stablecoins created for gold, Euro, Mexican Peso, British Pound Sterling, and offshore Chinese Yuan.
How to buy USDT (Tether) on Bitget
Within the "Buy Crypto" menu of the Bitget website and application, you will find three options to buy USDT.
- Express: we support 40+ fiat currencies and 70+ payment methods, including Mastercard, Visa, SEPA, SWIFT, Fast Payment Poli, and many other local payment methods.
- P2P Trading: you can purchase USDT with credit or debit cards at your preferred prices.
- Third-Party Payment: you can also buy USDT with multiple fiats via our third-party providers like Simplex, Banxa, Mercuryo, etc.
Once your purchase is done, you will see your USDT appear in your Bitget account in the "Assets" section:
From here, you can start enjoying the Bitget ecosystem! We support a wide range of cryptocurrency products and services, including spot trading, futures trading, a token launchpad, and much more.
Be aware that it is also possible to earn interest on USDT, especially through the Bitget Savings program, which currently offers an estimated APR of 10% per year:
Disclaimer: All products and projects listed in this article are not endorsements and are provided for informational purposes only.
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