A Step-by-Step Guide on How to Buy Tether and Store it
Ever wondered why investors buy tether? Well, that's because it's stable and represents a “one-on-one value” of world reserve currencies such as the USD, Euro, and the Yen. But tether is not without its issues.
At the moment, everyone knows that US Department of Justice issued a couple of subpoenas against BitFinex and Tether limited, the company that issues Tether cryptocurrency.
These two are sister companies sharing the same CEO and when news reached media houses and got dissipated, the price of Bitcoin tanked. Unfortunately, the erosion continues which begs the question, is there a direct relationship between Tether and Bitcoin prices? Well, let’s first understand what Tether is
To begin with, Tether Limited is the company that issues Tether cryptocurrency that was formed in 2015 as Real Coin. The idea behind Tether Limited and Tether is simple. It fuses the stability of the US Dollar and the convenience of cryptocurrencies.
Consequently, this merger demands backing of each Tether with an equal amount of US Dollar in a transparent manner. In simple terms, for every Tether in circulation, there is an equal amount of US Dollar in the company's coffers.
According to CoinMarketCap there are more than 2.287B USDT in circulation meaning the company should have at least $2.287B of USD in reserves. This is what we call soft-pegging. Luckily, it doesn’t have to be the USD alone, you can soft-peg the Yen or Euro against Tether if need be.
Facilitating this is the simple technology behind the platform. Tether uses the Bitcoin Legacy blockchain for storing data representing transactional information via an Omni protocol. In turn, Omni Protocol gives a go ahead for the destruction or creation of Tether depending on the transactional data in the Bitcoin network and stores the token.
How to Buy USDT on Binance
Because the value of each USDT or EUROT represents the real value of a fiat currency, you cannot mine Tether. Therefore, if you want some, you have to buy and this is how to buy usdt on binance:
- Buy Ethereum or Bitcoin from either CoinBase or BitFinex
- Create an account with Binance
- Transfer Bitcoin or Ether from CoinBase to your Binance account
- Navigate to USDT on the top right hand of the exchange platform
- Click on BTC/USDT and sell BTC at Market price
- Go to your account Dashboard to verify your USDT amount.
Where to Store Tether
Once you learned how to buy usdt on binance, and you got some USDT, you can store them in any Ledger or Trezor wallet since they are basically Bitcoin tokens with Bitcoin addresses but the problem is these USDT won’t be visible to the device. To spend them, you should reveal your seed phrase to the Omni wallet which originally store these USDT.
If you are interested in investing in other cryptocurrencies, check out our article about the best cryptocurrencies to invest in 2019.