How to buy and hold USDT with Wigwam
1. Choose a token number that you want to buy
2. Create a wallet, where to store your crypto
3. Pay with credit card
4. Check your crypto in the created wallet
Why Wigwam is the best crypto wallet for Tether (USDT) storage
Ultimate security, only you have access to your Tether tokens
Send, Receive, Store your Tether tokens free and without limitations
Check the real-time value of your crypto tokens
Buy, Sell, Exchange Tether (USDT) directly in the wallet
Stake Tether (USDT) by connecting Wigwam to the popular DeFi dApps
No KYC or personal data collected
USDT token review
USDT or Tether is a crypto coin whose value is pegged to the US dollar value. This token is called a "stablecoin" in the blockchain world because its value stays the same in the highly volatile crypto market. It is mostly used to preserve the value of crypto assets in a portfolio and transfer crypto to fiat and vice versa.
Tether (USDT) was created in 2014, and the first version was operated on the Bitcoin blockchain by using the Omni layer protocol. Later, USDT was issued as an ERC-20 token on the Ethereum blockchain. A few years later, other popular blockchains started supporting this token. Some are Tron, BNB chain, Solana, Algorand, Tezos, etc. USDT is one of the most popular cryptocurrencies, with a market capitalization of 87 billion dollars.
How it works
The USDT mechanics consists of three main parts:
- Stablecoin mechanism - the token value should always be equal to the US dollar by a ratio of 1:1.
- Reserve system - the Tether Limited company is obligated to reserve collateral in US dollars equal to the amount of the issued USDT.
- Conversion Process - users may convert USDT to US dollars and vice versa through the Tether company.
However, because of the USDT popularity, many exchanges and crypto companies provide services of buying and selling USDT for USD in a ratio of 1:1
At the moment, Tether is considered one of the most popular crypto tokens and is used for:
- As a stable medium to hedge against the volatility of cryptocurrencies
- Remittances - because of USDT's fixed value, popularity, and the possibility of conducting quick transactions, many people use blockchain and Tether for conducting international money transfers as an alternative to traditional payment systems.
- Means of payment - many people in developing countries have started using USDT as a main means of payment and savings instead of their local fiat currencies to protect their income from inflation.
- Main token for cross-chain transactions. Many use USDT as a reliable way of transferring value from one blockchain to another.
- Popular token in DeFi. Almost all DeFi projects support this token, and users can easily add liquidity, stake, lend, and borrow tokens by having USDT.
There have been ongoing concerns about real Tether reserves and whether they actually cover all issued tokens. There are currently more than 87 billion Tether on the market, and the company could not confirm that it has the same amount of reserves in its accounts.
Also, Tether Ltd. faced scrutiny from regulators and was involved in legal battles, particularly with the New York Attorney General's office. So, it might be a theoretical situation where Tether may stop its commercial activity and support the issued tokens.
This article is for informational purposes only and should not be interpreted as financial or investment advice. The views expressed herein represent solely the opinion of the author and are not intended to provide specific trading or investment recommendations. We do not guarantee the accuracy, completeness, or reliability of the information contained in this article. The cryptocurrency market is known for its high volatility and unpredictable fluctuations. Investors, traders, and anyone engaging with cryptocurrency are advised to conduct thorough research, consider a variety of perspectives, and acquaint themselves with applicable local regulations prior to making any investment decisions.
You may buy USDT on different platforms: traditional crypto exchanges, peer-to-peer platforms, trading apps, etc. We recommend using the Wigwam multi-crypto wallet, where you may buy USDT in minutes and have complete control over your funds.
USDT doesn't support proof of stake mechanism as some other crypto coins do, so there is no traditional "staking" option. However, you may use the variety of DeFi applications on different blockchain platforms, where you may earn rewards for staking your Tether. Some of them are Aave, Compound, Uniswap, etc.
USDT is a regular ERC-20 token, so you may track all transactions by using Etherescan.io or another blockchain explorer of your choice.
Firstly, you need to be sure that your crypto wallet supports the blockchain on which you want to hold USDT. Secondly, you should receive USDT in your wallet or buy these tokens directly in the wallet via a credit card. Finally, if you don't see your tokens, you should add this token to your wallet manually by using the official USDT smart-contract address (for Ethereum, it is 0xdac17f958d2ee523a2206206994597c13d831ec7);
There are many risks involved when you are buying USDT; some of them are:
- Uncertainty about whether US dollars fully back USDT
- Regulatory risks that could impact the functioning of Tether Ltd company and its ability to support the Tether token
- Platform risks - if you store USDT on exchange or DeFi services, there's always a risk that your funds might be blocked or stolen because of a technical hack.
It's not advisable to hold your long-term investments in the USDT token.