How to Buy Tether (USDT)

Tether (USDT) is one of the world's largest and first stablecoin cryptocurrencies. Stablecoins are cryptoassets that are programmed to track the value of another asset, like government backed currencies or gold. Tether is pegged to the US dollar (USD), with the aim of maintaining a constant 1:1 ratio with USD. Tether Limited Inc. maintains this ratio by backing its stablecoin with reserves of cash and highly liquid, low risk cash equivalents. 

Tether Limited Inc. is owned by Hong Kong-based company iFinex, who also own the cryptocurrency exchange BitFinex. Tether was created by co-founders Brock Pierce, Craig Sellars and Reeve Collins. The co-founders originally launched the digital currency under the name RealCoin in 2014, then rebranded as Tether in November of the same year.

By maintaining its peg to the US dollar, Tether allows holders to have a stable currency in times of increased price volatility in the crypto market. Tether allows cryptocurrency users to accomplish this price stability without having to leave a blockchain network to convert their holdings back into cash. 
 

Tether's dollar peg also makes it a relatively predictable cryptocurrency, simplifying crypto payments by maintaining a stable future value.
 

Tether is listed on many cryptocurrency exchanges as an alternative to government issued currencies, thereby freeing some crypto platforms from needing to maintain relationships with traditional financial partners. 

Tether Inc. backs each of its USDT stablecoins with a combination of US dollar reserves and highly liquid cash equivalents such as U.S. Treasury bills, commercial paper or bank certificates of deposit. Cash equivalents’ highly liquid nature means they can typically be turned back into cash quickly and at a minimal cost. You can read an in-depth transparency report on Tether Inc.’s reserves on their website.
 

Want to dive deeper? Read Kraken’s What Is Tether? (USDT) to learn more.

Tether (USDT) has a market capitalization that ranks it among the largest cryptocurrencies in the market today. You can find Tether's market cap today on Kraken's USDT price page.
 

Tether is the largest stablecoin by market cap. Out of all cryptocurrencies, Tether consistently ranks as one of the largest assets, lower than only the most popular cryptocurrencies such as Bitcoin and Ethereum. 
 

Tether is one of the most widely-used coins in the crypto market with a circulating supply in the tens of billions of dollars.

Tether’s value as a stablecoin comes from the combination of its predictable future value and the efficiency as a medium of exchange. 

You can use your Tether to interact with cryptocurrency platforms that do not support cash deposits and send it to others globally at a low cost to yourself. Many also choose Tether while withdrawing to and from Kraken, in order to move funds quicker and easier than you could move US dollars or other fiat currencies. Tether may also be accepted as payment for goods and services, depending on the merchant.
 

Active traders may also use USDT to settle their funds at the end of a trading session, exiting market exposure to more volatile assets and reducing exposure to the cryptocurrency sector overall.

With more than a decade of experience, Kraken has established itself as a pillar of the cryptocurrency industry. While we have grown to now offer over 185 cryptocurrencies, we remain one of the best places to buy USDT. We're constantly rated as one of the most secure and trusted crypto exchanges in the world.

Kraken offers a minimum order size of 5 USDT, meaning you can start buying USDT with just $5.

You can buy Tether on Kraken with as little as $5. Each USDT is also divisible into smaller units. While you do not need to execute larger orders, Kraken’s advanced price discovery and execution technology helps offer some of the best rates of any cryptocurrency exchange.

Your verification level determines what you can do with your Kraken account. This can be located by signing into your account, selecting your name in the upper right and then selecting Get Verified. You will then see highlighted your current (pending or verified) level.

Dollar cost averaging is a popular strategy that allows you to invest in an asset at regular time intervals using fiat currencies (cash) and other payment methods like a bank transfer, regardless of its price. This sort of strategy is designed to help build wealth over time while minimizing the impact of unpredictable price changes. 

While Tether is not a speculative investment asset, it does have utility. Tether’s stable price and status as the largest stablecoin make it a useful cryptocurrency as a form of payment. Whether this is between yourself and a merchant who accepts USDT or another individual, Tether can be sent around the world quickly and at little cost (especially compared to cash wire transfers).
 

Tether is also used by those who want to interact with cryptocurrency platforms that cannot accept cash deposits. Many cryptocurrency platforms either lack or do not intend to involve outside banking partners, limiting their services to cryptocurrencies only. Stablecoins provide a reliable alternative to cash for cryptocurrency platforms, eliminating their need for government backed currencies and traditional financial institutions in general.

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Disclaimer
Information provided in this “Learn” section is for general educational purposes only and is not intended to constitute investment or other advice on financial products. Such information is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any particular digital asset or to use any particular investment strategy. Kraken makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any such information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.