USDT coin, more formally known as Tether, is an asset-backed token that’s pegged to the value of fiat currencies like the US dollar and the Euro. If those currencies lose or gain value, then Tether will follow suit.

Unlike other cryptocurrencies, this one isn’t designed for mining or trading but instead provides the stability of fiat currency in an online environment. Tether can help you avoid the volatility of cryptocurrencies, and protect your assets from having their value fluctuate.

This article will explore what exactly USDT coins are and how they work with Bitcoin exchanges like Coinbase, Kraken & Bitfinex.

So what is Tether?

Tether is a cryptocurrency, meaning it can be sent, received and stored via blockchain.

Tether’s platform provides transparency by allowing users to store their funds securely on the Blockchain network. More importantly, the platform issues blockchain-based assets linked to government monies with four currencies: USDT (US dollars), CNHT (Chinese Yuan), EUTR (Euro), XAUT (1 ounce of gold).

Tether Limited, the organisation behind the USDT coin, is on a mission to make government currency more compatible with newer crypto assets.

The idea was first launched in 2014 and has since (as of 2020) become the most popular cryptocurrency traded globally, 24/7. Each USDT token is redeemable for 1 U.S dollar held under custody by Tether Limited—total value of all tokens equals reserves, so you can always trade them back into cash whenever needed at any time or place.

Compatibility with other blockchains

In 2020, Tether became available as an asset on Liquid — a sidechain from Bitcoin designed specifically with large transactions in mind while still maintaining decentralization features like instant-finality and censorship resistance.

Tether is now available on the Ethereum (ETH), Tron (TRX) and EOSIO blockchains. Tether-backed tokens can be created as native assets on their respective blockchain networks thanks to specialized smart contract functionality.

Tether USDT issuance on different blockchains

Organizations relying on stablecoins can avoid speculative movements by being fully linked to the US dollar. Tether helps institutions handle and manage capital flows securely through an automated treasury reserve management system and a money laundering prevention system.

How USDT coin works

USDT coin is linked to the value of one US dollar. It’s as simple as that!

To get more technical, Tether accepts fiat deposits and withdrawals on behalf of clients, which helps them maintain parity with USD reserves they administrate – Tether works by minting and destroying tokens in accordance with those reserves.

When someone wants to convert their money into USDT coin, it’ll be exchanged for an equivalent amount in dollars from its reserve account at the same time as when somebody buys back USDT.

That means you’ll never have less than 1:1 worth between your cash (or other currency) deposit or withdrawal made by Tether Ltd., and how much that’s left behind after conversion will represent your balance).

Stability as standard

Using USDT coin can help limit the risk of losses in cryptocurrency markets that are prone to extreme volatility. In the crypto space, funds can generally be used anonymously and often without lengthy verification processes, which is why many traders favor them over other forms of traditional currency.

Tether USDT coin value in USD
With a few minor exceptions, USDT coin sticks as close to $1 USD as possible

In other words, stablecoins like USDT coin are becoming an interesting new class of cryptocurrency with uses beyond simply buying and selling. As of May 2021, the total supply of stablecoins was $100.33 billion!

Their stability makes them ideal for international transactions where currency fluctuations would otherwise create problems like high processing costs or delays due to transaction times when converting between fiat currencies before sending funds internationally.

The concept of digital currency has been embraced by some of the world’s most influential companies, with Facebook announcing in 2019 its own plans for a stablecoin called Libra.

Some governments are even considering their own versions of pegged crytocurrencies, in the form of a Central Bank Digital Currency, or CBDC. These would essentially be crypto versions of their existing fiat currency, but far easier to control and stabilise with blockchain technology.

How to buy USDT coins

If you’re looking for a streamlined way to buy or sell USDT, then market leaders like Binance, Coinbase and Kraken are great places to start.

These cryptocurrency exchanges make it easy to buy USDT coins with fiat currencies like USD, GBP, EUR and more without having to go through lengthy transaction processes.

Kraken is among the most secure and trusted cryptocurrency trading platforms in the world.

They offer low fees, helpful customer service 24/7, and a variety of deposit options; making it easy for you to trade with them securely and without any worry of your funds being compromised or stolen.

The exchange process is a breeze. First things first: create an account on Kraken. After that you will need to deposit collateral (fiat currency).

In order to purchase USDT from Kraken, this would mean depositing US dollars into your account at their current market price; finally, purchase USDT with available funds!

How to get free USDT

Like many of the popular cryptocurrencies, you can get small amounts from USDT faucets.

In exchange for a few seconds of your time, you can get anywhere from $0.0005 to $0.10 of free USDT coins. All you need to do is register for a free microwallet on a platform like FaucetPay.io, then visit our list of free USDT faucets, and start claiming!

While you won’t become a millionaire by using faucets, you can use your free USDT to buy other low-priced cryptocurrencies like Dogecoin, Shiba Inu or Tron, then wait for their value to go up.

Is USDT coin worth it?

If you’re looking for the next big cryptocurrency in terms of profit, then USDT coin is not the cryptocurrency for you. $1 USDT will always be worth $1 USD!

However, given its global reach and extreme stability, Tether is arguably one of the world’s most trusted forms of cryptocurrency.

So, as crypto continues to grow in popularity with mainstream businesses and investors, more and more cryptocurrencies and fiat currencies are likely to be traded using stablecoins, and Tether is leading the charge.

Given its many positive attributes, Tether’s status as the most most traded stablecoin is hardly a surprise.

That’s good news for its many users, since it means that as long as the security is there, there’s little to no risk in making big trades.