Tether (USDT) has the third-largest market cap in the crypto world. It is pegged to the US dollar, which makes it a stable store of value. Investors who want to protect their funds from dramatic market swings can exchange Bitcoin to Tether quite easily. Follow the instructions in our cryptocurrency overview to get stablecoins ASAP in 2022.
Why exchange BTC to USDT?
Despite the growing adoption and regulatory changes, Bitcoin is still regarded as a highly risky asset. Over the past 12 months, it has lost over 32.3%. The coin is being traded well below its all-time high of November 10, 2021 ($69,044.77) — at around $39,099.93. In recent months, it has reacted to interest rate changes, President Biden’s executive order on crypto, and the war in Ukraine.
Tether, on the other hand, is linked to a fiat currency. It is traded at around $1, with only negligible fluctuations. This asset is not susceptible to the same factors as Bitcoin, which is why users buy cryptocurrency of this kind. By investing in stablecoins, you get a reliable store of value. Tether’s market cap has risen above $80 billion, so liquidity issues won’t hold you back.
By definition, stablecoins offset the fluctuations in the crypto market as they track stable assets. This is the biggest reason why BTC to USDT conversion is so popular. Here are the key things to know about Tether:
- The tokens started trading in 2015 on the Bitfinex exchange.
- Originally, the token was called RealCoin.
- Tether has different variations linked to different fiat currencies — the US dollar, the Euro, and the yen. The Tether coins also vary depending on compatible blockchains.
- 1 USDT is backed by 1 US dollar.
- Tether plays two key roles — as an exchange medium and store of value.
- Due to its stable price, users who exchange cryptocurrency do not use Tether for speculative investment.
Where and How to Buy
You can exchange Bitcoin for Tether on a wide range of platforms and apps. Well-established apps like Changelly are preferable as they have stringent security measures, including KYC. However, you still need to keep the majority of your assets in a cold wallet and store the keys in a safe place — if you lose them, recovery may be impossible.
The biggest exchanges like Kraken and Coinbase connect millions of members. They offer a vast selection of assets, and liquidity is not an issue. You can buy and sell crypto quickly. Note that Binance does not accept users from the US — they need to use its local branch — Binance. the US.
On Changelly, the process of buying and selling crypto is simple and hassle-free. If you do not have a USA/EN account, you need to sign up and verify your identity. This is a mandatory step on all reputable sites.
General Exchange Process
Registered users who want to stabilize their investments can purchase Tether in a few simple steps:
- Select the BTC-USDT pair in the exchange section.
- Specify how much BTC you want to exchange or how much USDT you want to get.
- Select between fixed and floating exchange rates.
- Type the address of your crypto wallet.
- Review the transaction details.
- Get your Tether!
Nearly all crypto exchanges follow a similar procedure. After registering, you need to verify your identity through KYC, top up your account, and you are all set.
Risks of trading Tether
Stablecoins are the quiet power players of the crypto world, but some users doubt their stability. Yet, some critics fear that the real purpose of Tether is to support a high price of Bitcoin. These fears are not only limited to Tether.
There is indeed no standardized way for stablecoins to disclose the assets they are backed by. In 2021, Tether even released an attestation about its reserves to prove that its coin was, indeed, stable. The company was also investigated by the New York Attorney General. This case resulted in a settlement that prohibited Tether from doing business in the state of New York.
Yet, like other stable coins, Tether is better protected against taking than Bitcoin or Ethereum. Recently, when hackers stole 600 million dollars from Poly Network, Tether froze its tokens, rendering them useless to the criminals.
