What is USDT? Understand USDT to become a smart virtual currency player

What is USDT? USDT helps virtual currency players to avoid fluctuations of virtual currencies as well as facilitates you to transfer national money and control crypto wallets effectively.

What is USDT?

Tether coin (USDT) is a Cryptocurrency asset issued on the Bitcoin Blockchain through the Omni layer protocol (Omni is a platform that helps create and trade custom digital currency assets or units. software built on top of the Bitcoin blockchain). Each USDT unit is protected by a USD at the Tether Limited reserve and can be redeemed via the Tether platform.

Tether USD can be transferred, stored, spent, just like Bitcoin or any other virtual currency, users can transact and store tether with any Omni Layer e-wallet like Ambisafe, Holy Transaction or Omni Wallet.
what-is-tether-usdt

Similar to Bitcoin, Ethereum and other cryptocurrencies, users can transact, store and spend USDT. They can transact and store Tether on any Omni Layer e-wallet like Ambisafe, Holy Transaction or Omni.

The purpose of the USDT

  • Make it easier to transfer national currencies. Accordingly, providing users with a stable altcoin instead of Bitcoin and providing an alternative to insecure wallet transactions and audits today.
  • The USDT also provides proof of a Proof of Reserves Process instead of a Proof of Solvency. In Tether’s proof-of-reserve system, users can easily check the amount of USDT in circulation on the Bitcoin blockchain using test tools. Meanwhile, the total amount of USD in the reserve is proven by exporting the bank balance and through periodic audits by experts.

You can check the amount of USDT in circulation HERE. The total number of USDT in circulation at any given moment is denoted by the USDT. The amount of USDT in circulation must always be equal to the amount of USD in the bank account at Tether Limited to be able to send and receive legal money for users to directly buy and sell Tether on the Tether Platform.

To prove that the amount (in USD) in the bank account is equal to or more than the USDT in circulation, Tether Limited has published the bank account balance on the Transparency page on the website. Professional auditors will regularly confirm, sign and issue basic bank balances and remittance reports.

See also: What is foreign exchange? Basic information to master

How USDT works

USDT works in a specific manner following the steps below:

Step 1: You use cash to buy USDT.

Step 2: At this point, Tether will generate a similar Token. The USDT you buy is priced equal to the USD 1 value you deposit.

Step 3: You can trade freely, buy, sell and exchange comfortably.

Step 4: You don’t like to play anymore, so you will sell your USDT to Tether to withdraw real money, or sell it to an exchange or someone.

Step 5: If you want to sell it back to Tether, Tether will pay you back and permanently cancel that Token.

how-usdt-works

Is USDT a rival to Bitcoin?

The creation of USDT has caused many people to confuse that this is an AltCoin, a rival of Bitcoin. However, the Tether executive team has confirmed that USDT only adds technology to Bitcoin.

usdt-vs-bitcoin

Accordingly, USDT supports the wider use of Bitcoin, allowing users to be attracted to the blockchain but the volatility becomes an easy entry into the market.

Where should I buy USDT in Philippines?

If you do not know where to buy USDT in reputable Philippines, you can refer to the list below:

  • Vicuta: Vicuta’s USDT buying and selling service is very popular with customers. More than 200 types of altcoins are supported here, so you only need to register for an account without KYC to trade. You can access this exchange HERE
  • Remitano: This is one of the largest and quite reputable exchanges in Philippines. You can access this exchange HERE
  • FinanceX: FinanceX’s 24h volume of FinanceX has reached nearly 5 billion VND per day, this is a good place to buy USDT because of their good liquidity. You can access this exchange HERE
  • Huobi OTC: Buying here is quite troublesome when it comes to KYC and some procedures. However, the advantage when buying here is quite cheap and can be said to be the cheapest currently. But if anyone has no experience of buying and selling, they should not use it here. You can access this exchange HERE
  • Bitmoon: This is a quite reputable trading platform recently, the 24-hour volume reached more than 2 billion VND. You can access this exchange HERE

It is also possible to buy USDT by direct person-to-person transactions. If you know someone who owns USDT and wants to sell, you can contact these people directly to ask to buy, if you agree to sell, they will transfer USDT to your wallet.

Why buy USDT before playing Bitcoin?

According to the experts and those who used it, the USDT’s value did not fluctuate as much as Bitcoin. Since USDT is pegged to USD at a 1: 1 ratio, it has additional stability that differs from other cryptocurrencies.

For example: If in a day, the price of Bitcoin from 12,000 VND to 14,000 VND, those who play Altcoin with Bitcoin pair will fall dramatically but the USD value of the coins does not drop much.

If you are playing BNB on the Binance exchange that supports BNB / USDT transactions, then when the price of Bitcoin spikes, you transfer all BNB to USDT to hold the price. This way you can limit the BNB discount and your money will be kept.

Conclusion: USDT is the most effective way to avoid “erratic storms” from Bitcoin.

Is there any fees for using USDT?

Once on exchanges like Poloniex or Bittrex, USDT can be used to buy Bitcoin and other cryptocurrencies. Users will also easily transfer USDT from an exchange to any Omni Layer e-wallet.

Trading via Tether is completely free, although wallets or other exchanges may charge a one-time fee. To convert from USDT to USD or vice versa via Tether.to Platform, users have to pay a small fee.

Transaction fees for transferring from USDT to USD and vice versa at some e-wallets and banks are as follows:

Appearance Transaction fees
Wallet uses Tether.to Free
Blockchain wallet with Tether

Free

Tether bears all Blockchain fees when sending money from Tether wallet. The fee only occurs when sending Tether out of wallet or out of control

Bank account

10 or 20 USD

When depositing or withdrawing from the wallet via a bank account there is a fee as above or more

If you are a smart cryptocurrency player, you should definitely use USDT to avoid the risks that Bitcoin brings. However, if you still have questions about USDT, you should ask the experts or consult your friends who have experience in playing cryptocurrency to make the best choice for you.

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