Buy Tether (USDT) - how to invest in Tether in Nigeria

Tether coins are considered among the most stable in the cryptocurrency industry. The minimal level of market activity makes this digital currency easily predictable. These tokens are traded on virtually all popular exchanges. Tether combines all the advantages of fiat money and cryptocurrency. We will explain the differences between fiat money and cryptocurrency, the benefits of USDT, and why you should buy Tether in this article. 

Tether is the most famous stablecoin
Tether is the most famous stablecoin

Fiat and cryptocurrencies

Fiat currency is a currency whose value is secured by the state which issues it. The value of such money does not depend on its material or the size of the state and bank reserves. Fiat currency exists because of the authority of the state and the laws that it establishes. A fall in authority dramatically reduces the value of such money. 

Fiat currency can exist either in cash or in electronic form. Fiat currencies include all modern state currencies - US dollars, euros, yen and others.

So what is a cryptocurrency, which includes Tether?

Cryptocurrency results from computer calculations; electronic registries store information. It contains how much cryptocurrency a user has and where they transfer it to somebody. Cryptocurrency is stored in unique electronic wallets.

With the advent of the internet, there have been periodic attempts worldwide to create digital currencies. However, no one trusted these projects - and they were not popular. Moreover, they were too easy to counterfeit.

The first cryptocurrency, bitcoin, was able to solve this problem with the help of blockchain. This system has been compared to a big book containing all the records of what happens to the cryptocurrency. And every bitcoin owner has an independent but identical copy of that book on hand.

The entries in all the books are accurate and identical. Neither the banks, government, nor the creator of the cryptocurrency can tamper with these records. In other words, there is no single controller in the blockchain; many participants control the system. A system built on mathematical calculations protects the digital currency from being tampered with or hacked.

Today, cryptocurrencies are gradually becoming a serious competitor to the traditional financial system. Conventional modern money issued by central banks is not backed by gold or other precious metals.

In the cryptocurrency market, stablecoins perform as a buffer
In the cryptocurrency market, stablecoins perform as a buffer

USDT cryptocurrency, what is it?

The name itself clarifies that this token is directly related to the dollar. The letter 'T' is taken from the word Tether, which translates as a peg, meaning that this digital coin is tied to the US dollar. That was the goal of its creators, to combine national fiat money with cryptocurrency capabilities. Tether Limited issues USDT and Euro (EURT) and Japanese Yen (JPYT). They are less common.

The USDT cryptocurrency is a hybrid of fiat money and crypto. The platform is based, like Bitcoin, on blockchain, plus a particular Omni Layer protocol. This is why USDT is called Stablecoin, i.e. a stable coin.

How does Tether work?
How does Tether work?

Each USDT coin is backed by real funds held in company accounts.  Accordingly, the value of such currency is correlated with the fiat dollar, although small fluctuations (within one per cent, upwards/downtrends) are periodically observed on various trading floors.

That is why the PoS (Proof of Solvency) method has been replaced by the PoR (Proof of Reserves) method. So put, as much USDT is in circulation, so much is in the company's account. That being said, anyone can verify the reality of the collateral. Tether Limited provides open access to information about its bank accounts.

In addition, independent audits by Taiwanese and American firms (for example, TOPSUN CPAs & Co and Friedman LLP) are regularly conducted, which publish the results on their own resources. This is a critical point, as this practice provides the user with a reliable and transparent system that combines all the benefits of blockchain with the dollar's stability.

If you plan to buy USDT, be sure to research all available information to minimise the risks.

History

The Tether project was founded in July 2014, but the coin was called initially Realcoin. This cryptocurrency was based on Blockchain Bitcoin. The tokens were developed on the Omni Layer platform.

Less than a year later, the decision was made to drop the name Realcoin in favour of Tether. The digital currency still operates in this format today.

The digital currency is based on an open-source Omni Layer protocol that works with the blockchain
The digital currency is based on an open-source Omni Layer protocol that works with the blockchain

Tether is a cryptocurrency that integrates classical financial markets. The emergence of this asset has contributed to the rapid development and consolidation of Blockchain technology. Implementing such ambitious plans was made possible because the digital currency USDT was backed by actual fiat money. The funds are held in Hong Kong. The exchange rate is 1:1.

The development team has constantly been developing the cryptocurrency ecosystem. After a while, a digital currency of the same name was created, but it functioned on Blockchain Ethereum. Initially, the coin was backed solely by the US dollar, but a digital counterpart to the euro was subsequently created. The new cryptocurrency was released on two platforms, Omni and Ethereum.

Distinctive features of USDT

Many may wonder what are the benefits of such a cryptocurrency if its exchange rate is unchanging? So why do people buy USDT? Let's try to explain.

  • Stable exchange rate. Of course, many people are used to making money from the volatility of cryptocurrencies. However, Tether can help you secure your money if you anticipate your cryptocurrency falling. 
  • Base pairs with Tether dominate centralised exchanges. They account for 65% of transaction volume. 
  • USDT is adapted for use in the DeFi space. In particular, the platform collaborates with cryptocurrency lending company Aave.
  • Most of the coins are located on cryptocurrency exchanges' balance sheets (about 70%). And 5% is locked in DeFi smart contracts.
  • There are no restrictions on issuing or destroying tokens. Therefore, there will be no liquidity problems.
Tether functions on a BTC blockchain
Tether functions on a BTC blockchain

So, what is the advantage of USDT? 

1. Low fees. Within the Tether system, no transaction fees are charged at all and for transferring USDT to BTC and back. Only some third-party firms (crypto exchanges, exchangers, etc.) can set specific fees, which are minimal. For example, Binance exchange does not charge any commission for USDT deposit/withdrawal.

2. Access to e-wallets does not depend on financial structures' time zone and working hours. Therefore, at any moment, a holder of crypto dollars can sell them, exchange them, buy or pay for goods/services with them.

3. High speed of transfers. This point does not need any explanation. Efficiency in financial matters is sometimes more important than anything else.

The Tether project is constantly finding new solutions for faster transfers
The Tether project is constantly finding new solutions for faster transfers

4. Ease of determining the value. A person can operate with familiar concepts as the cryptocurrency USDT always tends to the value of USD.

5. Use of Blockchain technology and all the advantages associated with it: decentralisation, anonymity and cryptocurrency security.

Where to buy Tether?

Due to its popularity, Tether cryptocurrency has been listed on many trading platforms. Many platforms are tried and trusted, such as the Binance exchange. When working on unverified platforms, you may encounter hidden fees, unfeasible withdrawal terms, and other pitfalls hidden under the fine print. So if you want to buy Tether in Nigeria, choose your exchange carefully. The wide choice of exchanges is also because the token has many standards. Therefore, selecting popular platforms with maximum capitalisation and good reputation is better.

Other ways to invest or get Tether

You can apply to generate new tokens.

This option is only available to verified users with a verified account. The administration does not approve all accounts, setting a relatively high identity verification fee. This method is suitable only for large investors.

Tether tokens is an alternative to traditional currency deposit and withdrawal methods
Tether tokens is an alternative to traditional currency deposit and withdrawal methods

Staking

There is another way to invest in Tether in Nigeria - staking. 

To minimise the risks, research all aspects of your cryptocurrency market activities. 

What is DeFi-staking?

DeFi (decentralised finance) is a way of providing financial services to users via smart contracts. Existing DeFi projects give higher returns in certain currencies.

What are the advantages of DeFi-staking?

  1. Ease of use: to participate in DeFi-staking, you do not need to manage private keys, acquire resources, make transactions, or do other complex tasks. Binance's versatile service allows users to earn generous rewards without opening an on-chain wallet. 

  2. Funds are safe: Binance chooses only the best DeFi projects in the industry and monitors the DeFi system in real-time to reduce the risks associated with these projects.

  3. Higher returns: there are no high commissions associated with trading in DeFi-staking. With the same level of risk, users can get the highest possible returns.

After your funds have been successfully allocated to fixed staking, the profit is calculated from 00:00 (UTC) the next day. The minimum profit calculation period is one day; profits earned in less than one day are not considered in the profit distribution.

You can stake or lend Tether  token  to earn on cryptocurrency
You can stake or lend Tether token to earn on cryptocurrency

Bottom line

The world's first cryptocurrency was bitcoin. Its creator is Satoshi Nakamoto, whose identity remains undisclosed to this day. However, he wrote the code and formulated the principles of the future cryptocurrency network. It happened in 2009. The following year, bitcoin began its active expansion into the global economy. 

Always take advantage of your chance to make money. To do that, try to spend some time every day researching cryptocurrencies, reading the news, experimenting, asking yourself questions and looking for answers. If you do, you are sure to succeed!

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