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What is Tether (USDT)?

Sep 11, 2020
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byNDAX Labs

What is Tether (USDT)?

As cryptocurrencies and digital currencies continue to gain popularity, more and more individuals and companies have been attempting to mainstream the adoption of crypto in everyday life. However, one of the biggest issues that digital currencies face and the main concern that is preventing such adoption is the fluctuations that make them impractical for everyday use.

Tether (USDT) is a stable coin that is issued by Tether Limited and was created as a way to utilize the advantages of cryptocurrencies while tackling the problem of volatility that most cryptocurrencies face.

A stable coin is a digital token intended to provide both stability and security. The concept of pegs is the most important part of stable coins. A peg is used to keep the value of a currency stable by fixing the value of one currency in a predetermined ratio to a more stable currency. To maintain this peg, a large number of reserves must be accumulated first.

                                             


                               

How does Tether (USDT) work?

In regards to Tether (USDT), it is pegged to the price of USD. Being backed by USD means that for every Tether (USDT) issued, there is an equivalent amount of USD kept in a reserve. Tether’s 1:1 ratio to USD is not perfect, however, it stays pretty close, decreasing the risk of volatility.

Tether Limited, the issuer of the coin, holds fiat in amounts that they believe to be the amount of Tether (USDT) in circulation. Initially, Tether (USDT) was brought onto the Bitcoin blockchain before it was put on the Omni Layer Protocol. The protocol is a platform used for various digital assets and currencies; all while being anchored to the Bitcoin blockchain. Every Tether Omni transaction is recorded in a Bitcoin transaction.

                     


                                                   

Advantages of using Tether

The biggest advantage and the reason why Tether (and stablecoins in general) were created was to provide stability to the volatile cryptocurrency space. Tether (USDT) has all the beneficial properties that are common to cryptocurrencies such as decentralization and transparency but also addresses one of the biggest problems of digital currencies. Traders and investors can hold USDT and not have to worry about significant fluctuation that is common with most digital currencies. These characteristics make USDT more practical to be used as a means of payment or for day to day transactions.

Because it is a digital currency, Tether (USDT) has a borderless reach and is accepted anywhere around the world by those who support the cryptocurrency. Therefore, people in countries with weak currencies or with high inflation rates can mitigate their losses by trading their money for Tether (USDT) no matter where they are in the world. Tether (USDT) allows anyone to have access to a stronger currency that is protected by inflation very easily.

                                                   


                                               

What USDT pairs are available on NDAX?

USDT to CAD and USDT to BTC

             


                                               

How do I buy Tether in Canada (USDT/CAD)?

Market Order (on the trading page)

  • • Login to NDAX
  • • Once you log in you will be redirected to your dashboard
  • • Click TRADE on the left-hand side of the screen
  • • On the trade page, click BUY (Green button) on the right side of the screen
  • • Click the small GREY ARROW in the upper left corner of the screen to pick the USDT/CAD pair
  • • Click on MARKET
  • • Enter ORDER SIZE (the amount you want to buy) either in USDT or CAD
  • • Click PLACE BUY ORDER

                           

Dashboard page

Note: On our dashboard page, all orders will be executed at market price

  • • Login to NDAX
  • • Once you log in you will be redirected to your dashboard
  • • On the right side of the screen, you can find our Quick Buy/Sell widget
  • CLICK THE SMALL GREY ARROW in the upper left corner of the screen to pick the USDT/CAD pair
  • • Input the amount in CAD that you want to purchase USDT with
  • • Click BUY (Green button)
  • • Click BUY (Green button) again within 5 seconds to confirm your order


                                                 

How do I buy Tether in Canada (USDT/BTC)?

Market Order (on the trading page)

  • • Login to NDAX
  • • Once you log in you will be redirected to your dashboard
  • • Click TRADE on the left-hand side of the screen
  • • On the trade page, click BUY (Green button) on the right side of the screen
  • • Click the small GREY ARROW in the upper left corner of the screen to pick the USDT/BTC pair
  • • Click on MARKET
  • • Enter ORDER SIZE (the amount you want to buy) either in USDT or BTC
  • • Click PLACE BUY ORDER

                           

Dashboard page

Note: On our dashboard page, all orders will be executed at market price

  • • Login to NDAX
  • • Once you log in you will be redirected to your dashboard
  • • On the right side of the screen, you can find our Quick Buy/Sell widget
  • CLICK THE SMALL GREY ARROW in the upper left corner of the screen to pick the USDT/BTC pair
  • • Input the amount in BTC that you want to purchase USDT with
  • • Click BUY (Green button)
  • • Click BUY (Green button) again within 5 seconds to confirm your order

                       


                                                 

How do I deposit Tether (USDT)?

Canadians can deposit USDT on NDAX by following these steps

  • • Login to NDAX
  • • Once you log in you will be redirected to your dashboard
  • • Click the DEPOSIT icon at the top of your screen
  • • Select the CRYPTOCURRENCY TAB on the left side of the screen
  • • Choose USDT
  • • Click the GREEN DEPOSIT BUTTON
  • • Send your USDT to the address provided to deposit into your NDAX account

                               


                           

If you are based in Canada and looking for a Canadian USDT exchange, then take a look at  NDAX. NDAX is an easy-to-use, beginner-friendly exchange that can give you easy access to trade Bitcoin and other cryptocurrencies like Ethereum, Ripple, Litecoin, Cardano, Dogecoin, EOS and Stellar.