Tether is a cryptocurrency that has been growing in popularity with its investors. However, most exchanges use BTC as the only available currency.
In this article, we will show you how to buy Tether using Bitfinex or Polo and using Coinbase for verification purposes before sending it to the wallet of your choice.
Generally speaking, there are two ways to buy Tether: first is by trading BTC for USDT, and the second is by exchanging Ethereum (ETH) for USDT (more on that later).
What is Tether (USDT)
Tether, also known as USD₮, is a cryptocurrency that promises to keep the price stable at $1 — and they do so by using traditional banking techniques.
For every Tether token in existence, there is $1 held in reserve in a bank account somewhere (hence: 1:$).
This was done in hopes of making it more appealing and useful compared to other cryptocurrencies and tokens that are not backed by anything.
You can purchase one USDT for $1 or exchange your BTC to receive an equivalent number of tokens. Over two billion Tethers have been issued so far with no actual dollars backing it.
Ways to get Tether
There are two ways to get Tether. The first way is by trading BTC for USDT through the most popular cryptocurrency exchange Bitfinex, whereas the second one is by exchanging Ethereum (ETH) for USDT using services like Binance, Livecoin, Tidex, and others.
Exchanging BTC for USDT
The most popular way to get Tether is by exchanging BTC for USDT through the Bitfinex exchange.
Bitfinex offers a wide variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. You can also trade your BTC for USDT on other exchanges like Poloniex or Kraken, but we will focus on Bitfinex in this article.
To start trading on Bitfinex, you need two things: an account and some Bitcoins. The sign-up process is relatively easy and only requires an email address to start.
Once you have registered and logged in, you need to deposit some Bitcoins into your account before you can buy any Tethers. You can do this by clicking on the “Deposit” tab and then selecting your desired cryptocurrency.
After your Bitcoins are deposited, you can start buying Tether tokens. Simply click on the “Exchange” tab and search for USDT. Then, select the amount of USDT that you want to buy and hit the “Buy” button.
Your order will then be placed and, once it is filled, the Tether tokens will be transferred to your Bitfinex wallet.
If you’re new to buying cryptocurrencies, then we recommend starting with the first method of getting Tether since it does not require any additional actions from your side besides funding your account.
How to buy Tether on Bitfinex
If you want to buy Tether using Bitfinex, then you first need to create an account and deposit some BTC into it.
Once your account is funded, go to the Trading section and search for USDT/BTC. Click on that pair and then scroll down to where it says “Buy USDT”.
In the order form, you first need to enter the amount of BTC you want to spend and in the second field (labeled as “Amount”) you need to enter the number of USDT tokens you want to purchase.
Click on the “Buy” button and your order will be filled immediately at the best possible price.
How to buy Tether on Poloniex
The process of buying Tether tokens on Poloniex is very similar to the one on Bitfinex.
First, you need to create an account and then deposit some BTC into it.
Once your account is funded, go to the Trading section and search for USDT/BTC. Click on that pair and then scroll down to where it says “Buy USDT”.
In the order form, you first need to enter the amount of BTC you want to spend and in the second field (labeled as “Amount”) you need to enter the number of USDT tokens you want to purchase.
How to buy Tether with Coinbase
Since most exchanges do not list USDT, we must first purchase BTC or ETH on Coinbase.
Once you have purchased your desired amount of Bitcoin or Ethereum, follow these steps:
1. log in to your Bitfinex or Polo account and click on “Deposits”.
2. Search for the currency that you just bought on Coinbase and select “Deposit Address”.
3. Copy the address given to you and go back to Coinbase.
4. Click on “Send” and enter the address you copied from Bitfinex/Polo, the amount of Bitcoin or Ethereum you want to send, and click on “Continue”.
5. Click on “Confirm” and your transaction will be processed.
Pros and cons of using tethers as a trading tool for cryptocurrencies
Pros:
Tether is one of the most stable cryptocurrencies in the market. The price has remained $1 since its launch, and there are no known concerns regarding Tether’s liquidity or solvency so far.
Stable cryptocurrency prices help reduce trading costs for all traders involved since volatility creates uncertainty in any market.
Using USDT lets you easily hedge against volatility by converting your BTC to USDT, withdrawing it to your bank account, and then converting your fiat currency back to Bitcoin (or other altcoins).
Cons:
However, Tether has failed at achieving the #1 spot when it comes to the daily volume traded in BTC in comparison with other top exchanges like Bitfinex, Binance, OKEx.
Conclusion
Tether is a cryptocurrency that has been growing in popularity with its investors. However, most exchanges use BTC as the only available currency.
In this article, we have shown you how to buy Tether using Bitfinex or Polo and how to use Coinbase for verification purposes before sending it to the wallet of your choice.
Generally speaking, there are two ways to buy Tether: first is by trading BTC for USDT, and the second is by exchanging Ethereum (ETH) for USDT (more on that later).
We hope this article was helpful and informative. If you have any questions or suggestions, don’t hesitate to leave a comment below! Thanks for reading!