How to convert BTC to USDT?

Tether USDT is currently the third biggest cryptocurrency in the world by its market capitalization. Recently it even surpassed XRP and Bitcoin Cash. By its nature, Tether USDT is very different from other cryptocurrencies – it’s a stablecoin. Stablecoins are a separate asset class that has both the qualities of cryptocurrencies and fiat currencies. In this article, we will break down the notion of stablecoins, their role in the crypto market, how to transfer BTC to USDT and how to buy USDT coins. So, if you want to learn what is the cheapest way to buy USDT, you are in the right place.

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Why are stablecoins so important?

It won’t be wrong to say that stablecoins have pushed cryptocurrencies to the next level upon their creation. Before stablecoins, Bitcoin was the medium of exchange, and all altcoin pairs were pretty much pegged to BTC. It is inconvenient, as Bitcoin itself is very volatile, and in addition to the volatility of the chosen assets, traders had to also predict the price actions of Bitcoin. On the stock market, one can always exit to cash in the case or prices crashing. When it comes to crypto, it is really not that easy. Traders suffered from heavy losses on Bitcoin positions every time. Everything changed with the invention of stablecoins. Stablecoins serve the role of a bridge between the world of cryptocurrencies and fiat money. They are based on the blockchain technology, but the value is pegged to real-world currencies. The majority of stablecoins are pegged to the US dollar, but some of them are equal to Euro, Japanese Yen or Chinese Yuan. USDT is backed by dollars, and 1 USDT is always equal to 1 US Dollar. It makes USDT a winner when there is a USDT vs BTC situation.

Tether ecosystem

How does USDT work? Initially, it was running on OMNI, a software layer built on top of Bitcoin protocol. While it was good for its time, OMNI isn’t the most convenient blockchain nowadays. Now USDT tokens run on many blockchains, such as EOS, Tron and the main volume of USDT tokens is transacted via Ethereum as ERC20-standard tokens. Recently, with the launch of the OmiseGo network, a layer 2 solution for Ethereum, many large crypto exchanges started to move Tether operations to OMG network.

As we have already mentioned, every Tether token is backed up by the money held in the bank account of the issuer, Tether Limited (not to be confused with Tethers Unlimited). The volume of funds held there is unknown, but currently, there are more than 9 billion USDT tokens in circulation. There are many other competing stablecoins, collateralized by USD: TrueUSD, GUSD, USDC, HUSD, BitUSD, but Tether USDT remains the most popular one. Its market cap far exceeds all the other stablecoins combined: compare 9 billion with 742 million, which is the market cap of the second biggest stablecoin, USDC. TrueUSD has $141 million of market cap, GUSD - $10 million. Traders need USDT for a very obvious reason: they want to protect themselves and evade the exposure to market risk. Tether price is always stable, although with some small fluctuations, around $1. Whenever there is a risk of a big market drop, traders sell their assets and go to Tether USDT. Among the crypto traders, there's even a verb “to tether”, which means “to convert everything into stablecoins”. Many crypto enthusiasts dislike Tether because of how centralized it is, but without it, the crypto market wouldn't have been the same. The daily USDT volume is $28 billion, which means every token changes hands 3-4 times a day. Also, Tether is the only cryptocurrency with a daily volume exceeding its market cap. In addition to USD, Tether also issued tokens, pegged to Euro and Yuan, but their market cap is very small, $50 million and $25 million respectively.

How to buy USDT

So, how could I buy USDT if I need it? First of all, you should have another cryptocurrency that you can exchange for USDT to buy USDT. The most popular trading pair is BTC to USDT.On average, 1 BTC to USDT rate is around 18751.966 USDT. You can check the exact rate with BTC/USDT converter.

With this cryptocurrency in your wallet, you have to use a cryptocurrency exchange. Almost every crypto exchange has USDT listed. To buy Tether, check the platforms and the exchange rates, choose the most profitable deal and go for it. To find a good rate, it's not necessary to register on dozens of exchanges, you can use an exchange aggregator which has all offers in one place. One of the best exchange aggregators is Swapzone. It combines many offers and lists them, allowing you to choose a preferred rate for every trading pair like BTC to Tether. You can also learn how to swap BTC to USDT. Also, in addition to the rates, it shows the exchange fees and the data on the service provider.

To convert to Tether USDT, you will need to follow these steps:

  1. Go to Swapzone.
  2. Select the coin or token you would like to exchange in the Deposit list.
  3. Select Tether USDT in the Receive field.
  4. Check the offers available, compare them and choose the best USDT rate.
  5. Enter the address of the recipient. Verify the address once more to be sure it’s correct.
  6. If everything seems okay, click Proceed to Exchange.
  7. After this action, you’ll see the deposit address. Send the necessary amount of cryptocurrency you want to exchange to this address.
  8. Now you just have to wait a little bit and USDT will be in your wallet shortly after!

It won’t take you long to get your USDT. No registration needed, no personal data needed. During the hard times in the crypto market, it might be a good idea to save the value of your portfolio instead of taking risks, and Tether will help you in this task. Whenever you need to buy it, whenever you want to perform a Tether exchange, go to Swapzone - and convert whatever cryptocurrency you would like to into USDT. You can also buy bitcoin with tether later if you want.