Today the scope of various cryptocurrencies is not limited to just being mere assets, instead, they have extensive use cases. Various digital assets collectively produce a whole new level of the decentralized finance system. Among these, Tether and Ethereum have widespread uses. Ethereum has outperformed Bitcoin many times recently, proving its worth and significance to the crypto market. USDT/ETH is a very common trading pair. Both Tether and Ethereum are available in almost all the renowned exchanges due to their market dominance and high trading volume. In this article, we will compare Tether vs Ethereum and get to know the cheapest way to swap USDT to ETH.
What are the key differences between Tether and Ethereum?
Like many other cryptocurrencies, Tether is supported by a standardized blockchain. It is a cryptocurrency token with value in the market masked by an equal amount of the fiat pegged against it. Therefore, it is a much more stable cryptocurrency than the others. The fiat that supports the value of Tether such as Dollar and Euro are held in a designated amount.
In simpler words, there is an amount of fiat currency equivalent to the number of Tether coins in circulation that is always held in the bank. It is regarded as a stable coin because it aims at stabilizing the value of crypto assets.
Advantages of Tether
It is amongst favorite cryptocurrencies of traders who want to enjoy the benefits of crypto while staying cautious of losses. They intend to protect themselves from extreme volatilities yet make use of the crypto market for earning considerable margins. Tether tokens are traded under the symbol USDT. Due to being a stable coin, Tether is more commonly used as a storehouse of value and as a medium of exchange. As the pegged currency is fiat, it is a fiat-collateralized coin. If we look closer, Tether predominantly acts as a bridge between fiat and cryptocurrency.
Ethereum, on the other hand, is a traditional cryptocurrency and blockchain. It also has its own coding or programming language known as Solidity. Ethereum uses a public ledger to publicly display all the transactions on the network. It also gives its user an easy access to various decentralized applications called the dApps. For these, Ethereum is used as a method of payment. In the market, Ethereum is second to Bitcoin in terms of market cap and trading volume. If you stand for the titans like Ethereum and Bitcoin, check out how to exchange ETH to BTC instantly
Advantages of Ethereum
The Ethereum blockchain is an open-source platform that provides its users with various facilities such as opportunities for businesses, financial services, and decentralized entertainment applications. With the facility of smart contracts, Ethereum has facilitated traders, investors, and developers a new way of managing their portfolios. It is known as the world’s first programmable blockchain. It differs from Bitcoin in not being limited to providing trading and investing services.
As discussed earlier it serves a marketplace for programmable services the most prominent of which are smart contracts. Various functions on the platform can be automatically controlled through smart contracts. Firstly, Ethereum was designed to be used as a mode of payment but now it is widely accepted as a tradable cryptocurrency like Bitcoin, Litecoin, and several others. Third-party platforms such as Overstock, Shopify, and CheapAir accept ETH as an official payment method, advocating its success and relevance in the global arena.
What are the differences between Ethereum and Tether?
In this section of the article, we have listed some major differences between Tether and Ethereum in a tabulated manner, as both of these currencies are digital assets that have their distinctive use cases and features.
|Type of currency||Tether is a blockchain-based stable coin and an ERC20 token.||Ethereum is a non-collateralized traditional cryptocurrency.|
|Name||It is traded under the name USDT||It is traded under the name ETH|
|Collateralization||Its coins in the market are supported by an equal amount of fiat in a specified bank||It is not backed by any fiat or cryptocurrency|
|Volatility||The market is comparatively less volatile||Its market is highly volatile|
|The main aim behind its creation||Tether was created to bring stability to the value of a cryptocurrency||It was created as a means of powering the Ethereum blockchain and its services.|
|Purpose||Tether is used as a store of value and as a medium of exchange||It is used as a mode of payment for financial services, games, dApps on the Ethereum blockchain and also a mode of payment outside its ecosystem|
|Addition features||No additional uses as such||Provides its users with the facility of smart contracts, dApps, and other business means.|
Why should I convert Tether to Ethereum?
There are a number of reasons why one would want to swap Tether to ETH. USDT is an ERC20 token and its transaction is carried out on the Ethereum blockchain. Every transaction that takes place on the Ethereum network requires a small amount of fee in the form of ETH. Therefore, in case you want to swap USDT with any other cryptocurrency you will have to buy a small amount of ETH with your coins.
In addition to that, Tether is a much more stable coin and hence the profit margins are often low. If you find a suitable trend in the market, swapping USDT with ETH and then exchanging it for a more volatile cryptocurrency can generate greater profit margins for you.
How to swap Tether to ETH?
Exchange platforms, like Swapzone provide an easy solution for those traders who seek to convert their digital assets. These platforms deal with various crypto pairs including USDT to ETH. Users only have to follow a few steps to convert their assets within a few clicks. We have listed down a few steps for you to feasibly swap USDT to Ethereum.
- Go to Swapzone.io to get your work started.
- Select USDT in the Send section.
- Specify the total amount you are going to transfer.
- Select ETH in the Get Up To section.
- Review the offers on the screen. You will find multiple offers with the best rate listed at the top. You can also see how many minutes it would take for you to complete the exchange.
- Confirm the offer you wish to utilize and then enter the wallet to receive ETH.
- List the address that will take USDT.
- Wait for the deposit to be processed by the exchange service and the exchanger to swap Tether to ETH.
- Do not forget to rate the exchange partner, so we can gather more information on the exchanges for future users.
Why is Swapzone the cheapest way to swap USDT to ETH?
Swapzone aggregates exchange offers from 15+ exchange providers, providing users with a choice. When exchanging on Swapzone, you can choose, for instance, the most profitable USDT to ETH offer, hence, saving your money. This positions Swapzone as the cheapest way to swap USDT to ETH.