Surely, when participating in the cryptocurrency market, you cannot help but not know USDT (Tether), the largest stablecoin in terms of market capitalization, which is also the most commonly used at the moment. However, you may not know, USDT not only has one type, but it has many different types of USDT. For newbies, it is more difficult to avoid confusion and risky startups than if you use the wrong USDT wallet addresses together, the risk of losing money is very high.
What is USDT?
Tether (USDT) is a cryptocurrency released on the Bitcoin Blockchain through the Omni protocol. Currently, USDT also runs on ERC20 and TRON. Each USDT unit is backed by a US Dollar held in Tether Limited reserves and can be redeemed through the Tether platform. Tether USDT can be transferred, stored, spent, just like Bitcoin or any other virtual currency. Users can trade and store via specialized wallets like Ledger Nano S, Trust Wallet or Exchange Wallet.
In Tether’s proof and data system, the amount of USDT in circulation can be easily checked on the Bitcoin blockchain through the tools provided at Omnichest.
While the corresponding total amount of USDT reserve is proved by publishing bank balances and undergoing periodic Audits by experts.
In the cryptocurrency world, transaction speed is an extremely important factor, which partly determines the public’s acceptance of cryptocurrencies. This is also why cryptocurrency projects are always seeking ways to fix the transaction speed of their blockchain platform, and Tether is no exception.
How was the USDT created?
USDT is created quite simply. When you have an account on exchange sites like Remitano, Poloniex. With USDT support, you will have USDT wallet. It can easily be transferred from exchange to any Omni-class electronic wallet.
Part 1 – Create an account with Tether.io
- Step 1: Access to Tether.big
- Step 2: Select “Sign up” to create an account
- Step 3: Fill in personal information and click “Create account”
- Step 4: You have created an account. However, to use this account, you must activate by two-factor authentication (2-factor authentication), to increase security. Select “Security Page”
- Step 5: Choose the method of activating 2FA activation. This tutorial selects the “Google Authenticator” method
- Step 6: Scan the QR-code or type the code into Google Authenticator
- Step 7: You will receive a code (changing frequently). Enter the code and select “Enable”. 2-FA is now enabled. You need a phone to access your account
- Step 8: Now go to your email and activate the link sent by Tether.
Your email will be verified.
You can then use your USD to send, receive and withdraw money as usual.
What is USDT used for?
USDT can be considered as a representative of the dollar for trading and exchanging in the field of virtual money and people use USDT to buy altcoins instead of Bitcoin.
Firstly, USDT as a common payment unit can represent on behalf of all currencies because virtual currency trading is the whole world of play, not just one country, so it needs a unit common so that it can be easily managed to avoid clutter.
The second is that technically, the exchanges cannot connect to the system of all banks in the world or have to go through a 3rd party intermediary like Paypal. It will be very troublesome, depending on them, the transaction speed will be extremely slow, it is not possible to pay immediately – an extremely important thing during trade because the price is constantly changing rapidly and when an incident occurs will be very complicated to solve. That’s why USDT was born USDT is just a currency to trade coins but can also be considered as a virtual currency because it operates on the bitcoin blockchain.
Because they also act as virtual currency protocols, exchanges can easily sync and manage it on their server just like other virtual currencies. Moreover, because it works on the blockchain, it is transparent because anyone can check the money coming and coming. The difference between USDT and regular coins is that USDT is always provided and distributed continuously to the market, so it always keeps an almost fixed exchange rate of 1 USDT equivalent to 1 USD worth in real life.
Another extremely important advantage of using USDT instead of Bit for Altcoin transactions is in terms of transaction fees. You may not pay attention and do not care much, but for those who trade often and in large quantities like me, from paying 0. 2% of the fee for exchanges when buying and selling orders have been made. I lost about 5 BTC on transaction fees within half a year of my trade, a huge number.
Where can you store USDT?
You should prioritize hosting on large and reputable exchanges, have a risk reserve fund to store USDT. Wallet wallets are suitable for cryptocurrency traders, but you should not store all USDT in a single exchange. Should allocate to different floors to hedge risks.
Reserve USDT with your MyEtherWallet wallet
MyEtherWallet is a popular online wallet for those who have “hunted ICOs”. It supports Ethereum as well as ERC20, ERC721 standard tokens…
You can refer to the article: What is MyEtherWallet? Instructions on how to create a MyEtherWallet wallet and how to use it for more details.
Because USDT-ERC20 is ERC20 compliant, you can store it at MyEtherWallet.
MyEtherWallet has 1 advantage which is fast USDT transfer speed and low fee. However, it has a critical drawback: lack of basic security features. As long as you have a private key, you can access the wallet and transfer coins easily.
With such advantages and disadvantages, MyEtherWallet wallet is only suitable for those who regularly trade USDT. It is not suitable for those who intend to store USDT for a long time in large quantities.
Reserve USDT with an Omni wallet
Omni wallet is an online wallet like MyEtherWallet but it only supports USDT Omni standard. It also has the same critical weakness as MyEtherWallet, lacking basic security features.
In addition, with Omni standard, USDT transfer is very slow and transaction fee is very high so USDT Omni has become obsolete.
Actually, only those who have USDT Omni should consider storing in Omni wallet. Otherwise, you should switch to the standard USDT-ERC20 which is more “trendy” by buying USDT at support floors of USDT-ERC20 such as Bitmoon, Ifidex, Remitano.
Notes when trading USDT
Know the definition of Stablecoin
Even on the cryptocurrency exchange, we are always caught up with the rule of “knowing the enemy knows we have a hundred battles and a hundred wins”. The key before you make a transaction with a Stablecoin is whether you know it or not. You are a good coin trader but not sure you have enough experience to handle a Stablecoin.
Keep USDT in your account and wait until the price wave reverses to avoid a loss.
Catch up on crypto news
The virtual currency market is always characterized by rapid change. The only way you won’t be “led” by the market is to always have the latest news about it.
In addition to updating on price news, you need to know about issuers, whether their stocks are rising or falling, how the next move affects the market, etc. To become more macro-like as the development of platform applications, the Government will issue policies related to Stablecoins, especially USDT, the more you pay attention.
Know how to read market trends and charts
Like other cryptocurrencies, USDT is often shown exchange rates on chart patterns. Through them you can read the position of the market will lean in the near future.
Sometimes we need to widen our perspective to the past charts of USDT cryptocurrencies and contrast them with the current direction of development to find the most effective way to trade.
USDT is a large market with many unexpected events. Above are the sharing to help understand USDT and some important notes when dealing with USDT. You may be more brave when deciding to invest in USDT because VNDC has “backed” in adverse circumstances. Good luck!