How to Buy Tether (USDT) Online in 2022
With a market cap of over $70 billion, Tether (USDT) currently ranks fourth among global cryptocurrencies. Like a coin that mirrors the price of the U.S. dollar, this stablecoin is popular among risk-averse investors who still want to partake in buying and trading cryptocurrencies.
If you’re keen on buying Tether, this article will break down the process for you. Learn everything you need to know about buying USDT today.
Best Brokers to Buy Tether in 2022
There are many ways to buy cryptocurrencies. We’ve compiled the list of the best providers that you can use today:
Top payment method
USDT is not widely available for purchase
What Is the Difference Between Owning Tether vs a Derivative Product
There are many ways to purchase Tether outright so you own the underlying asset, allowing you to store your investment in a wallet. On the other hand, if you buy Tether through derivative products like CFDs, ETFs, and Futures, you don't own the underlying asset. With CFD trading, for example, you speculate on the expected value of USDT. You do not own the coin, rather you predict a rise or fall in its value. For the purposes of this article, we’ll discuss ways to buy USDT so that you own the underlying asset.
Different Ways to Buy Tether
Centralized Exchanges: Let you buy Tether using traditional currencies, like USD. They retain control over any coin you buy until you send it to a wallet that you control. Kraken is an example.
Decentralized Exchanges: Peer-to-peer marketplaces for Tether and other cryptocurrencies; connecting buyers and sellers directly. You can try Paxful, which lets you buy USDT through a range of payment methods.
Brokerages: Involve trading cryptocurrencies via a dealer network. Brokers offer an extensive set of features that can help you navigate strategies and risks. You can use technical analysis tools and even a copy trade function.
Tether Wallets: Let you buy crypto, view your balance, send transactions and connect to applications. Ledger Live app lets you buy Tether from their partner Coinify and secure it directly with your hardware wallet.
Tether ATMs: Can be used to purchase Tether with fiat currencies. You could use Coinatmradar to show you the closest Tether ATM in your location along with supported currencies.
Where to Buy Tether?
Kraken and Ledger Live are options for both beginners and experienced users. Here’s a quick comparative breakdown:
Kraken is a leading cryptocurrency exchange. As well as giving you the ability to buy USDT quickly, you can store your coins on the exchange.
As a hardware wallet and an app, you can buy, sell and swap your coins in one place.
How to Buy Tether Online?
USDT is not as easily attainable as its other counterparts like Bitcoin and Ethereum. Here are the specific steps involved in buying Tether on Kraken:
Step 1: Sign up for an account
Step 2: Verify your account
Step 3: Provide supporting documents to verify your identity
Step 4: Deposit funds
Step 5: Purchase USDT
Crypto Investment Strategy
Tether can be held as a long or short-term investment. The difference, however, will affect how you store your coins, and which platform you choose.
Long-term: This strategy involves buying Tether and holding it for a long period, at least a year. Many long-term crypto investors end up holding their investments for multiple years. Historically markets tend to appreciate every five years and the crypt market is no different— within the same time frame, the crypto market has outperformed traditional markets. Investors can also benefit from a few transaction fees. Holding cryptocurrencies for the long term could also be less risky than day trading. However, Tether being a stablecoin is viewed by many as a poor long-term investment.
Short-term: Short-term crypto trading or day trading is a strategy based on the purchase and sale of crypto assets, in this case, Tether, on the same day. Day trading crypto is considered high risk but potentially profitable because of the volatility and liquidity in the cryptocurrency market. eToro for example provides a wealth of services specifically aimed at cryptocurrency day traders, including access to the eToro Trading Platform.
How To Store Tether?
If you’re day trading on an exchange, it may make sense to store your funds on the platform for quick trading but otherwise, we recommend that you store your coins in wallets. Different types of wallets exist:
Digital cryptocurrency wallets: Otherwise known as soft wallets, come with private keys and allow you to store a number of different crypto assets online. These can come in the form of a mobile or web application; web wallets and even desktop applications, like the Exodus wallet.
Hardware wallets: Hardware wallets are small devices that require you to physically approve transactions. These devices are often considered one of the safest options. An example of a highly rated Tether wallet is Ledger Nano X.
What Are the Different Ways to Pay for Tether?
Payment methods will differ based on your location and platform. You should check the country-specific page on your chosen platform to confirm this.
A popular way to buy USDT is to fund your account via bank transfer. Doing so is simple; enter your bank details and the amount you want to add to your account.
Like credit and debit cards, most cryptocurrency exchanges will facilitate bank transfers.
PayPal is the world’s most popular digital wallet, with over 300 million active users.
To buy USDT using PayPal, connect it to your chosen brokerage/exchange account and deposit the amount that you require. Paxful accepts this payment method.
Apple Pay is a handy way to pay for your shopping and it is accepted in many stores around the world. Fortunately, it is also accepted as a payment method on some cryptocurrency platforms.
What to Consider When Buying Tether
There are several things you need to consider when buying Tether:
Different Fees: Some platforms will charge users a certain percentage for both buying and selling, possibly in the form of commissions or maker-taker fees. This will vary from platform to platform and is of particular concern for day-traders. Some platforms also charge deposit fees.
Volatility: Cryptocurrencies are notoriously volatile. While USDT is relatively less volatile, compared to other coins, never invest anything you’re not willing to lose.
Regulations and Taxes: The regulations of your country will affect how accessible crypto investments are to you, how these platforms are regulated and the level of protection you have as a trader. Proceeds from cryptocurrencies are often taxed and in some countries, these can be unfavorable such as where double taxation exists.
Crypto investment strategy: Whether you’re a long-term investor or a day trader should inform decisions like where you purchase your coins and how you store them.
Is It Safe to Buy Tether Online?
Fortunately, you can take steps to protect yourself online. We’ve listed a selection of important things to consider below.
Two-factor authentication (2FA): You can activate 2FA by going into your security settings on the platform. Signing into your account will require a code that will be sent to your phone first. This can help to protect your account against online attackers.
Use a wallet for your coins: When you buy USDT, you can keep them in a wallet provided by your crypto exchange. However, doing so is risky; if a hacker breaks into the system, you could lose everything. Instead, move your coins into a private wallet that only you have access to.
Pass only the necessary KYC information: When you sign up for an account, you’ll need to pass a KYC check in most cases. Doing so will require that you provide a copy of your ID, along with proof of your address. However, if you’re asked for your card PIN or social security number, do not hand these over; no genuine platform will need these.
Only ask for help on official forums: Remember not to reveal your private keys to anyone online. Cybercriminals may pose as customer service to steal this information from you.
Don’t trade with users you don’t trust: If you use a peer-to-peer (P2P) marketplace. Only trade with users who have a high reputation, look out for those with high ratings.
How to Sell Tether
Here are the typical steps you’re likely to encounter on exchanges, like Kraken:
Step 1: Sell USDT for another cryptocurrency (like BCH or XRP)
Step 2: Sell USDT for cash (like USD or EUR)
Step 3: Sell USDT
Is It Worth Buying Tether Right Now?
Tether’s price has generally remained close to $1. Traders primarily view Tether as a store of value when markets are volatile— so in this sense, it’s seen as a good option to diversify your portfolio. Traders also use Tether to avoid paying conversion fees that would normally occur when a cryptocurrency is converted to fiat currency and vice versa.
Do note that all cryptocurrencies are considered high risk and you should only invest in them as part of a diversified investment strategy. Your capital is at risk.
Enlisting a brokerage or exchange may be your best bet as a beginner, some of these have tools and functions to help guide you along the way. It’s always best to compare fees between options and select a platform that supports your choice of payment.