Tether (USDT +0.02%) is a stablecoin pegged to the U.S. dollar. That means 1 USDT is designed to have a value of $1, and it normally does, although there have been price fluctuations in the past.
Stablecoins are useful for people who want to hold a digital currency that will maintain a consistent value and is backed by an asset. Tether is extremely popular for this, but it's also arguably the most controversial stablecoin. We'll cover that and everything else you need to know about Tether in this guide.
Is Tether a good investment?
Tether isn't exactly an investment because it's designed to maintain a price of $1. The value won't increase like other cryptocurrencies and cryptocurrency stocks.
As previously noted, you could use Tether to generate passive income. There are plenty of lending platforms available that will pay you competitive interest rates for your Tether. It's one way to earn more interest than you would through a typical savings account.
Keep in mind that this is far from risk-free. Your Tether isn't insured or guaranteed like money in a bank account. Although Tether has generally maintained its $1 value, that could change in the future.
How to buy Tether
To buy Tether, sign up for an account with a cryptocurrency exchange that offers it. Since it's one of the largest cryptocurrencies, there are several good places to buy Tether.
After you've registered, deposit money to your account. At most exchanges, the cheapest way to deposit money and buy crypto is through a bank account transfer. From there, you can make your purchase.
When people think of stablecoins, Tether is one of the first names that comes to mind. Despite its issues, it's a very popular choice used for crypto lending and trading.
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