Tether (USDT) is the original stablecoin. The Tether whitepaper was first released back in 2012, although the token itself didn’t find widespread use until it was adopted by the exchange Bitfinex in 2015.
At a time when it was difficult for cryptocurrency exchanges to find reliable banking and fiat currency partners, Tether offered a way around the roadblock for the growing crypto industry. Offering a token that Tether claimed was backed 1:1 with actual US dollars, users could trade USDT without the fiat currency itself having to go anywhere.
Customers may expect that these coins will always maintain their value with the US Dollar. However, you must always keep in mind that unforeseen events or operational issues could lead to a particular stablecoin failing to maintain its pegged value to its designated asset or currency. Such an occurrence could cause the stablecoin to rapidly fall in value and never recover.
Tether claims that USDT is pegged at 1-to-1 with a matching fiat currency and is backed 100% by Tether’s reserves. Users can view the value of USDT tokens on issue versus its total reserves on Tether’s Transparency Page.
It shows the value of USDT tokens on issue versus its total reserves.
Value-referenced crypto assets such as USDT present risks distinct from other crypto assets. The mechanism by which a stablecoin seeks to maintain its value is not guaranteed and can present systemic market risk, capital risk, and security risk.
Customers should be aware that there have been no formal independent audits of Tether’s purported reserves. Tether releases quarterly reports which contain Tether’s attestations about their consolidated assets and liabilities. These quarterly reports have shown that Tether’s reserves are made up of cash, cash equivalents (such as U.S. Treasury Bills), short-term deposits, corporate bonds, precious metals, Bitcoin, “other investments” and secured loans.
Tether’s terms of service also allow Tether to delay the redemption or withdrawal of USDT tokens if there is illiquidity, unavailability, or loss of any reserves held by Tether.
Wondering, “How can I buy Tether? Where to buy USDT?” Follow these steps to learn how to buy USDT on CoinJar.
-Install the CoinJar app on iOS or Android. This is the most convenient way to access CoinJar’s services and features. You can also use the web version of CoinJar.
-Sign up with CoinJar and verify your ID. This is necessary to comply with the regulations and laws in your country. You will need to provide some personal information, such as your name, email, phone number, and address. You must also upload a photo of your ID document, such as a passport or driver’s license.
Due to UK regulations, UK customers must answer a questionnaire about understanding the risks. They will also have to wait 24 hours to abide by a “cooling off” period before they get approved. This process adheres to UK regulations.
-Once past the verification process, transfer money into your CoinJar account. You can do this in several different ways, so choose the method that suits you best. You can use bank transfers or use a card, among other methods.
-You can then use the funds in your account to buy Tether at the market price or place a custom order. CoinJar provides a secure and convenient wallet for storing your Tether USDT and other cryptocurrencies. You can access your wallet from the app or the web.
You can also send and receive the cryptocurrency Tether from other wallets using your CoinJar address or QR code. If you prefer to use a different wallet, you can transfer your Tether USDT from CoinJar to any other compatible wallet.
Welcome to the Tether USDT club!
Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits. CoinJar’s digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).
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