Even at the dawn of the development of the cryptocurrency market, it became clear that in order to ensure trading, the market needs a tool that is the equivalent of fiat money. The pioneers in this field were the Omni Foundation, which developed an addition to the Bitcoin network and based on it released the first stablecoin — “Realcoin”, which was later renamed “Tether” (USDT).
Tether is one of the most common options for exchange and settlement in the crypto industry. At the moment, users can buy usdt in several ways, which this article will tell about.
In Which Networks Does USDT Function?
Initially, the Tether stablecoin was developed for the Omni Layer, but in 2018 it was added as an ERC20 standard token in the Ethereum blockchain. For 2022, USDT is available in the following networks:
- Ethereum — ERC20.
- Binance Smart Chain — BEP20.
- OKEx Chain.
This isn’t a complete list yet, and for today USDT is available in more than 20 networks.
Pros and cons of USDT
Like any other cryptocurrency, USDT has its good and bad sides. Here are the most important advantages of it:
- low volatility compared to other cryptocurrencies, such as Bitcoin or Ethereum;
- transparency of the issue, — the company claims that it constantly monitors the compliance of funds in the vaults and the number of USDT issued;
- high level of sustainability because the collateral is in US dollars;
- distribution of USDT across different blockchains;
- high transaction speed in fast blockchains (BSC, Polygon).
But USDT also has its disadvantages, for example:
- it’s not money or a means of payment, i.e. Tether Limited has no obligation to exchange tokens for dollars;
- centralized management allows the possibility of blocking individual addresses or transactions;
- the cost of USDT takes over the inflationary risks of the US dollar.
Nevertheless, experts are confident that this new stablecoin has great prospects for development.
Where to Buy USDT Stablecoin?
The ways of buying USDT are no different from buying other cryptocurrencies. Now a stablecoin can be purchased in the following ways:
- on the stock exchange;
- with the help of an exchanger;
- on the DeFi platform (for another cryptocurrency);
- using the Ledger live application from the Ledger cold wallet.
Buying through the stock exchange is the most convenient and profitable option, because a client can use a convenient payment method and, if necessary, prove ownership.