According to coinmarketcap.com, there are over 10,000 digital assets in the crypto market. Most of these cryptocurrencies offer unique use cases, intrinsic value, advantages, price, and many more. Tether (USDT) is a Stablecoin that offers a unique use case and is the first of its kind.
If you are looking to have a hedge against the volatility of cryptocurrencies or perhaps you want to transfer value denominated in fiat without worrying about unnecessary conversion. Then, you should look no further than Tether (USDT), a digital currency pegged to the US dollar.
In this guide, you will learn what Tether is and why you should buy USDT in Cambodia at the best market rate, different ways, and platforms that you can buy Tether, and where to safely store your purchased USDT.
What is a Stablecoin?
A Stablecoin is a crypto asset that has its value tied to an underlying asset such as the US dollar, Gold, Cryptocurrencies, and many more. Stablecoins are designed to have a stable value to the value of the asset it was pegged. Stablecoins are created to avoid the wild volatility of cryptocurrencies. While the fluctuations in price are the major reason why cryptos are generating much attention, the relative stability of Stablecoins provides a means to hold native fiat currencies in digital forms and use them in everyday transactions.
Stablecoins also provide a connection between the traditional financial markets and the numerous opportunities provided by blockchain technology. It allows exchanges to create fiat currency pairs or commodity (Gold) pairs without actually accepting fiat or gold. For example, users can have a BTC/USDT trading pair that simulates the BTC/USD market. In this way, users have access to the benefits of the blockchain network while also enjoying the stability of fiat currencies.
There are different types of Stablecoins which include:
● Fiat-collateralized such as Tether (USDT), USD coin (USDC)
● Commodity-collateralized such as Digix Gold (DGX)
● Crypto-collateralized such as DAI
● Non-collateralized such as Ampleforth (AMPL)
So, what is Tether (USDT)?
Tether (USDT) was designed to maintain a stable value through market mechanisms. It belongs to the category of fiat-collateralized Stablecoins which have their value backed by a fiat currency such as USD, EURO, Yen. In the case of USDT, its market value is pegged to the US Dollar in the ratio of 1:1 — which means, 1 USDT is equal to 1 USD.
USDT was created to provide users with a form of stability in the ‘chaotic’ crypto markets where wide price swings can potentially cripple the value of one’s portfolio. Presently, USDT is the world’s most traded cryptocurrency. This can be attributed to the stability in its price which has made it a popular intermediary coin among investors.
Why Buy USDT?
The main reason why cryptocurrencies are generating much interest is due to their unpredictability and price fluctuation which can potentially be taken advantage of by investors. One might question the purpose of a digital currency that is designed to maintain a stable price all through the market mechanism. No increase in its price, no bubbles and offers no possibility of any financial gains, so why buy USDT? There are numerous good reasons to buy Tether, some of which are listed below:
● Price Stability
The primary purpose of USDT is to provide a hedge against the risk and volatility of crypto trading. USDT has proven to be a powerful tool for investors and traders alike. Since its value is fixed to the US dollar, it provides an interesting alternative to mitigate the extreme volatility of cryptocurrencies. For example, if you predict a sudden drop in the price of an asset, you can quickly exchange the crypto to buy USDT. By doing this, you have completely removed the risk of the drop from negatively affecting your portfolio.
USDT possesses the potential to revolutionize the worldwide remittance system. It can be sent anywhere in the world without worrying about the cumbersome conversion and extra transfer fees associated with fiat currencies. USDT is just as easy to send globally as Bitcoin and in some cases, it offers a greater advantage than BTC for remittance. For example, consider a scenario where a customer sends a merchant 1 BTC worth $50,000 in exchange for goods. After receiving it, the price of BTC suddenly drops to $45,000. Then the merchant is at a loss due to the unstable BTC price. With USDT, you are guaranteed the exact fiat value of your crypto without taking any loss.
● Transaction Fees and Time
USDT eliminates the transaction costs and delays that affect trade execution within the crypto market. Completing transactions in USDT eliminates the lengthy duration of time it takes for completing fiat transfers. Facilitating business transactions in USDT is fast, efficient, and devoid of any hassle. USDT transactions are completed in mere minutes as against fiat deposit and withdrawal which may take a while to complete. This is significant because investors often need to quickly move funds to take advantage of trading positions. Also, transferring USDT from one wallet to another incurs zero transaction fee. This is in contrast to fiat transfer where you will need to pay upward of $30 to process the transaction.
How to Buy USDT (Tether)?
The easiest way to get USDT in Cambodia is to buy USDT on Remitano with KHR or via a swap with another crypto on the Remitano platform. Remitano is a leading global P2P crypto exchange platform that supports the purchase and sale of cryptocurrencies such as Bitcoin, Ethereum, and many more. Below is a guide on how to buy Tether on the Remitano platform.
How to Buy USDT on Remitano
• Visit the Remitano homepage and click on register at the top right corner to create an account. Make sure you read and understand the terms and conditions before proceeding with the registration.
• Once your account has been successfully created, navigate to the KYC/AML section to complete the process (it is mandatory). Provide the requirement to complete the KYC/AML verification. Be rest assured your data is safe, secure, and encrypted with Remitano.
• Deposit fiat into your fiat wallet through the number of ways available on the platform.
• Once your account is funded, navigate to the “Wallet” section on your dashboard, where you will be able to buy Tether.
• Purchased USDT can also be safely stored on the Remitano platform.
• Alternatively, if you are already a registered user of Remitano, you can swap any crypto in your account to USDT using the Swap feature on the platform.
USDT is undoubtedly one of the most popular cryptocurrencies in the crypto space. According to statistics, 57% of Bitcoin transactions are done with USDT, making it dominant among its peers. It provides investors with greater flexibility and is a good safety net against crypto market volatility.