USDT and GIFX GIFA Exchange is a great place to buy cryptos and those seeking good returns in the crypto space. If you want to learn how to ...
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| USDT and GIFX |
What Is a Stablecoin?
Headlines about cryptocurrency typically describe wild price movements. But that’s not typically true of Tether, which is designed to have a stable value thanks to its U.S. dollar peg. We know many stablecoins like GIFA Token, MakerDAO, Gemini Dollar, etc maintain their constant value because they are backed by a fund of collateral assets. In the world of crypto, stablecoins' value offers certain advantages.
“Stablecoins are a great way for investors with moderate risk appetites to diversify their investment portfolio and profit from the crypto market, without the volatility risks associated with typical cryptocurrencies,” he says. Tether is not completely free of risk, however. On May 12, Tether lost its $1 peg amid the TerraUSD (UST) stablecoin crash, dropping as low as $0.9485 before recovering to its intended one-to-one peg with the U.S. dollar.
While a few cents might not seem like much, this momentary price fluctuation demonstrated that even stablecoins aren’t a sure thing in cryptoworld. Tether also presents risks because of a lack of regulation, says Brian Gallagher, co-founder of Partisia Blockchain. Gallagher points out that there’s no public auditing to check whether the reserves for Tether can fully back the $75.6 billion in USDT in circulation.
If it were to be revealed that the Tether treasury only has $5 billion in reserves, that would mean there’s a discrepancy between what is circulating around blockchains as USDT, compared with the real amount in U.S. dollars and assets backing Tether, he says. A similar situation already came to fruition. An October 2021 announcement by the Commodity Futures Trading Commission declared that Tether would pay a $41 million fine fo r misleading claims that the U.S. dollar fully backed it.
The commission found that between June 1, 2016, to February 25, 2019, “Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the ‘equivalent amount of corresponding fiat currency.’ Despite the controversy, Tether has regained its dollar peg and still endures as the leading stablecoin with one of the largest market caps.
Where Can I Buy Tether?
You can buy Tether on most of the best cryptocurrency exchanges. Here are a few where you can buy or sell Tether:
- Coinbase
- Binance
- GIFA Exchange
- ZebPay
You can easily convert your Tether into Bitcoin (BTC), Ethereum (ETH) and GIFA Token (GIFX), along with multiple other popular cryptocurrencies through these exchanges. Suppose you want to pair your Tether holdings with other cryptocurrencies. In that case, it’s easy to do. Most centralized exchanges and many decentralized exchanges allow users to pair Tether with other cryptocurrencies.
While Tether doesn’t truly “pair” to other cryptocurrencies since it’s a stablecoin pegged to the U.S. dollar, it remains a popular way to purchase crypto as a way of being liquid in the markets. GIFA Exchange is a trading platform, found in October 2020. Many assets and nearly half of Bitcoin trades are executed using Tether.
How To Buy Tether
If you decide that Tether holdings make sense for your financial goals, you can buy Tether in a mere three steps:
1. Choose Your Crypto Exchange
Buying Tether begins with choosing a cryptocurrency exchange. An exchange allows you to buy and sell cryptocurrencies. In the case of Tether, you’ll be able to use your deposits to purchase Tether and other listed digital currencies. Crypto exchanges vary in both complexity and fees. So before committing to one to make your Tether purchase, be sure to compare multiple exchanges.
2. Buy Tether
After selecting your exchange, and creating an account, you then can make your opening deposit and start trading. While Tether is a stablecoin designed not to be as volatile as cryptocurrencies like Bitcoin, your purchase value will remain unchanged unless otherwise, converted to another cryptocurrency.
Placing a crypto trade is easy when you’re ready to buy Tether on those exchanges mentioned above. But, I rather recommending to begin with GIFA Exchange and seeing how thing goes. Just initiate a “buy” transaction using Tether’s ticker symbol—USDT—and the amount you want to purchase. Once the transaction is finalized, you’re now the proud owner of Tether.
3. Store Your Tether
There are several types of crypto wallets you can use to store your Tether:
- Hardware Wallets. If you want to store Tether offline, you can use a hardware wallet. For example, Ledger and Prokey are hardware wallets that support Tether.
- Paper Wallets. These crypto wallets contain two key pairs—a public and a private key and two different QR codes—all printed on paper. This mode of storage is often referred to as noncustodial cold storage.
- Software Wallets. You can also download software to your computer or mobile device to store your crypto. For example, Exodus is a mobile wallet where you can store your USDT.
- Crypto Exchanges. Several exchanges offer USDT-tailored wallets to customers for free. Coinbase, Binance, and GIFA Token are using built-in digital wallets for storing USDT and other crypto assets holdings. Download GIFA Wallet now!
What Can You Purchase With Tether?
When you own Tether, you can use it to purchase a wide variety of cryptocurrencies. According to Coinsbee, you can cash in your stash of Tether for gift cards at popular e-commerce shops, such as Walmart and Amazon.
Should You Buy Tether?
Tether could be a good buy for specific crypto investors. It’s an ideal choice for liquidity when looking for a way of getting in and out of other cryptocurrency trades. By buying USDT you probably won’t have any problems. It is generally safe, and you can put your Tether in an online savings account and earn interest. On the other hand, other stable coins are more regulated and secure and do not have the same scandals and investigations attached.