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Buy Tether – Instructions for buying USDT

Tether is considered by many experts to be the most stable cryptocurrency of all and differs greatly from other cryptocurrencies such as Bitcoin, Ethereum & Co. which are subject to high volatility, due to a fixed peg to the US dollar or the euro or yen. Accordingly, Tether takes a completely different approach in the field of cryptocurrencies and is also not issued as coins, but in the form of tokens based on the existing blockchains of Ethereum and Bitcoin, where they are stored in the Omni layer. Why this is so, why the time to buy Tether is so favourable right now and where you can best buy Tether, we reveal to you here.

Phillipp Schuster

Verified writer

Updated September 21, 2021

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5 simple steps to your first Tether token

  1. Choose a reliable broker for Tether
  2. Open an account
  3. Buy Tether directly or exchange it for another cryptocurrency
  4. Store Tether in an Omnilayer Wallet
  5. Benefit from high security and stability

Why buy Tether right now?

Tether is one of the 10 most valuable cryptocurrencies in the world. Tether itself uses blockchain technology and – unlike other cryptocurrencies – is directly pegged to the US dollar (USD), the euro (EUR) and the yen (JPY). It connects to the blockchains via the Omni protocol (an open-source software) and thus enables the issuance and redemption of Tether coins. The special feature, besides the direct coupling to the three currencies, is the fact that the Tether platform hedges the respective currency behind the token 100% in the form of actual fiat currencies. The conversion rate of a USDT always corresponds exactly to one USD.

This basic structure makes Tether particularly interesting for anyone looking for a simple and stable conversion of fiat currencies into digital currencies. You can always buy Tether at the same rate. Since the currency is anchored in the real world, volatility drops to a minimum, because Tether is not a monetary instrument, but formatted as a digital token to work on blockchains. This also means that there are no conversion fees, no commissions and the exchange rates on the market are stable. Sending between Tether wallets is also completely free. When sending to external Tether-enabled wallets, the company bears the fees. As a secure means of exchanging Tether tokens for fiat money at any time, Tether is ideal.

This makes Tether the most widely used digital-to-fiat currency in the world. We expect Tether Tokens to be exchanged on many more platforms in the future than is already the case today. By meeting global security standards and using blockchain-based technology, Tether is not only secure, but also regulated and reliable.

At this point, we would have liked to provide you with some additional information on where the currency reserves on which Tether is based are stored or managed. But this is not so easy to find out. However, there are indications that the effects of Tether are visible in the banking system of Puerto Rico. Since hedging in paper money requires enormous currency reserves, which in turn cannot be lent out, it is quite plausible that the impact is reflected to a not insignificant extent in the balance sheet of the respective banking system, namely through an increase in the equity ratio. This is the case for the banking system in Puerto Rico, which saw a rather sudden increase to 70%, very close in time to the issuance of the Tether tokens, both of which took place in September 2017.

On which exchanges can I buy Tether?

Depending on the type of Tether you want to buy (USD, EUR, JPY), different platforms come into question. The most popular token is the USDT on a BTC basis, so we have focused on this in the platform comparison. It is exactly equivalent to 1 US dollar. Tether can be bought directly on platforms like Kraken, can be traded directly with other coins on Binance or can be exchanged via Bitcoin (USDT) or Ethereum (ERC20), so you can also buy Tether indirectly via platforms like eToro. There are also other exchanges where you can trade Tether, but the ones we have presented are currently the best ways to get Tether tokens.

Binance OctopuseseToro
advantagesLow fees
Favorable conditions with Binance Coin
No deposit and account management fees
No inactivity fees
Tether pushed particularly hard
Very good range of coins from Bitcoin to Fiat money
No own wallet required
Low minimum deposit
Free SEPA deposit
Very secure platform
No wallet needed!
PayPal as a payment method
CySEC & FCA regulated
6 million users
disadvantageFees for each withdrawal
Can only be purchased with coins
Registration very time-consuming
App only for iOS
Cash payments only via SEPA
Not very many altcoins
No USDT directly available.

Our recommendation: Buy BTC or ETH at eToro and limit volatility via Tether.

Since Tether tokens are not directly used to make profits, but are only intended as a direct exchange option between fiat currencies and cryptocurrencies, it makes sense to invest in cryptocurrencies directly at eToro. However, if you fear a price drop or want to hedge your cryptocurrency, it can make sense to exchange BTCs or ETHs directly into Tether Tokens instead of other currencies. This is inexpensive, very secure, fast and uncomplicated. It therefore gives you the opportunity to bypass periods of expected higher volatility via quick exchanges. When you buy coins at eToro, you can exchange them for Tether at our top Tether brokers Binance or Kraken at any time without any hassle.

Depending on the exchange, Tether tokens can either be bought directly, via PayPal or credit card, or exchanged for other cryptocurrencies via trade.

In which wallets can Tether tokens be stored?

It is important to understand that the Bitcoin-based USDT tokens are different from the Ethereum-based ERC20 tokens. Both also use different storage methods. So if you want to transfer Tether, you need to look carefully beforehand at which blockchain your Tether tokens are based on. The wallet must then also be selected accordingly. For example, MyEtherWallet can store USDT that are based on the ETH blockchain, but none that are based on the Bitcoin blockchain! The classic wallet for USDT based on Bitcoin, on the other hand, is the Omni Wallet. Be careful not to just transfer Tether to any wallet from our wallet guide, because you could lose all the tokens!

How can you mine Tether?

As Tether is used to transfer the real currencies USD, EUR and JPY into digital currencies, it is different from other cryptocurrencies and accordingly cannot be mined. However, due to the stable exchange rate, you can of course mine Bitcoins or Ethereum at any time and then exchange them for Tether tokens.

Recommended platforms for buying Tether

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The world’s largest cryptocurrency exchange with over 2 billion users per day
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Crypto Prices (USD)
Bitcoin

Bitcoin

$62446.88
+0.23%
Ethereum

Ethereum

$3814.4
+0.16%
Binance Coin

Binance Coin

$490.54
–0.35%
Cardano

Cardano

$2.13
–0.05%
Tether

Tether

$1
–0.04%
XRP

XRP

$1.09
–0.29%
Solana

Solana

$157.53
–0.21%
Polkadot

Polkadot

$41.06
–0.14%
USD Coin

USD Coin

$1
–0.03%
Dogecoin

Dogecoin

$0.25
–0.52%

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eToro Experiences & Test 2021: Our Rating

9.3 / 10

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  • Very user-friendly trading for beginners
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Dogecoin logo 400

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Buy Tether – Instructions for buying USDT

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The Editorial Team

Phillipp Schuster

Phillipp Schuster was already interested in emerging technologies before he started his studies in the field of business informatics. In particular, the revolutionary potential of blockchain technology excited him and contributed to his professional focus on digitalisation. Besides technical topics, Phillipp is very interested in the tokenisation of assets and possible use cases of DLT in the IoT.

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According to their website support forum, this is “for security, regulatory compliance and fraud prevention”. The limits are based on several factors that include the payment method you used, how old your account is, your purchase history, and more. These limits are calculated automatically.

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eToro

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Binance

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Bitpanda

Brokers in the test: How you can buy Tether

We have briefly summarised the top brokers for buying Tether tokens by credit card, Paypal, SEPA debit or other cryptocurrencies for you here. Depending on how you want to buy or exchange Tether, one or the other broker is more recommendable.

Buy or trade Tether at Binance

At Binance, Tether in the form of USDT is one of the four main cryptocurrencies that can be exchanged for all other currencies. In addition to BTC, ETH and the own Binance Coin (BNB), you can therefore easily exchange Tether for all other cryptocurrencies available on Binance.Thus, you can easily buy Tether on Binance with every cryptocurrency available there. All price trends are clearly displayed here and you can find out exactly how the trade works in our Binance Guide.

Register with Binance

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Buy Tether at Kraken via SEPA direct debit.

At Kraken, you don’t have to register your own wallet and can benefit from the high security of the platform. Here you can buy Tether by having the money collected from your account via SEPA procedure. This way, payments can be made directly in euros. Although the verification process is time-consuming, the actual trade or purchase as well as the payment processing are quick and convenient. You can find more information on processing in our Kraken Guide.

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Bitcoin margin trading

Buy Tether via eToro cross-platform via PayPal

Due to the direct coupling of Tether to the euro, dollar or yen and the calculation based on the Bitcoin or Ethereum blockchain, it is very straightforward to get Tether via the major cryptocurrencies. Accordingly, it can make sense to buy coins at eToro, because here you not only have the advantage of a high security standard, but you can also pay via PayPal or credit card and benefit from low fees. Tether can be bought this way via platforms like eToro, albeit via the indirect route. How buying with eToro works without a separate wallet can be found again in detail in our eToro Guide.

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Large selection of crypto assets

Conclusion

If you are looking for a token that is secure, retains its value 1:1 in the respective underlying currency and can be exchanged cheaply into other digital currencies, you are very well served by Tether. While there is no profit to be made from holding Tether itself, it can make perfect sense to hold Tether to reduce volatility risk. Thus, Tether is ideal for businesses, exchanges, wallets, financial service providers or even ATMs that want to use fiat currencies very easily on blockchains. Tether offers the ability to send, store and receive digital coins pegged to the yen, dollar or euro worldwide at a fraction of the usual cost. However, if you want to hold a token or coin that is tied to exchange rate gains and subject to the risk of exchange rate losses, you certainly won’t be able to do as much with Tether due to its fixed peg to the dollar. Tether’s field of application is accordingly tailored to specific circumstances and usage scenarios. In our experience, Tether is best purchased on the Binance or Kraken exchanges. Alternatively, the regulated broker eToro is the safest option.

FAQs

Since the exchange into USD, EUR or JPY is so easy and usually free of charge, there is no need for a separate wallet to hold it. It is usually sufficient to hold Tether on the platform where you trade it or to use the official Tether wallet.

Due to the 1:1 rate in the fiat currency and the 100 percent asset coverage, the rate always remains the same.

Yes, the platform is designed to be completely transparent and audited at all times.

Tether tokens are represented by the ? symbol. It is modelled on other currency symbols such as the € sign. On most platforms, only the special character is not supported, as the tokens only work with normal letters. So both are correct.

97% of Tether Coins are present on the Bitcoin Chain. Here they are in the form of a kind of coloured coins in the so-called Omni layer.

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Phillipp Schuster, Currency Strategist & CEO

Phillipp Schuster was already interested in emerging technologies before he started his studies in the field of business informatics. In particular, the revolutionary potential of blockchain technology excited him and contributed to his professional focus on digitalisation. Besides technical topics, Phillipp is very interested in the tokenisation of assets and possible use cases of DLT in the IoT.

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