Many people nowadays who have some cryptocurrency view it as an investment, because of its massive price hikes. However, these cryptocurrencies are also a viable way to pay for an ever increasing number of products and services. In this article, we introduce Tether Token as one of the cryoptocurrency stablecoins and how to spend those Tether Tokens.
What is Tether and What are Tether Tokens?
Tether is a special cryptocurrency that is called stablecoin. This means it is asset based and linked to a commodity to stabilize and ensure less volatility of trading. It was originally designed to be valued at USD $1, with Tether Limited maintaining an equivalent of USD $1 of asset reserves for each Tether Token issued.
Tether tokens are the most widely adopted stablecoins, having pioneered the concept in the digital token space. Tether Tokens exist as a digital token built on multiple blockchains as Bitcoin (Omni and Liquid Protocol), Ethereum and others.
What are the benefits of using Tether?
Tether use for Exchanges
Tether tokens play a pivotal role in the digital token ecosystem and are the most actively traded in terms of 24-hour volume with other cryptocurrencies. Tether tokens are the first, most used, stablecoin, and one of the most traded tokens by volume. Tether tokens are today the most widely adopted stablecoins across major exchanges, OTC desks and wallets.
Tether use for Merchants
Many merchants integrate Tether tokens opening up an array of opportunities for consumers to purchase products and services.
Tether use for Individuals
Tether tokens offer exceptional liquidity on tier one exchanges giving traders the ability to take advantage of arbitrage opportunities in the fastest time possible. Moreover, converting Tether tokens to other cryptocurrencies (even the highly volatile ones) gives you access to a wide network of online merchants and services that accept cryptocurrencies.
How Tether Tokens are safer from other Cryptocurrencies?
Tether only issues new Tether tokens when they are requested and purchased by customers who have followed a strict KYC procedure. KYC processes include an ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification. Financial insitutions around the world must comply with KYC regulations and anti-money laundering regulations to limit fraud.
Built on Blockchain Technology
Tether tokens exist as digital tokens built on various cryptocurrency blockchains including Algorand, Ethereum, EOS, Liquid Network, Omni, Tron, Bitcoin Cash’s Standard Ledger Protocol, and Solana. Therefore, issuance of Tether tokens is split and diversified on various blockchains with varying capabilities depending on the transport protocol used ensuring more stability.
As mentioned before, being a stable coin offers price stability as Tether Tokens are pegged to a 1-to-1 with a matching fiat currency (1 Tether Token = 1 USD) and the system is backed 100% by Tether’s reserves. These brokers are offering traders, merchants and funds a low volatility solution when exiting positions in the market.
Where to spend Tether Tokens?
A lot of people may have money in Tether, the stablecoin, because cryptocurrency is in a downtrend and it’s probably safer for most to wait on the sidelines with the high volatility in the market. But that money need not stay trapped on a cryptocurrency exchange, or a cryptocurrency wallet but can be spent or invested in different ways.
Exchange to another Cryptocurrency
Many online brokers now make it possible for people to fund their trading account with Tether tokens, opening up lots of investment opportunities whether Forex, stocks, indices, precious metals and commodities.
Spend Directly at Merchants
If you’d like to spend your cryptocurrencies directly, several online retailers actually accept it as a form of payment. Ranging from Charity, Travel, Online merchants, Internet services, Gaming and Restaurants readily accept cryptocurrency wallets.
Major travel companies accept cryptocurrency as online payment method include Expedia, CheapAir and Virgin Galactic. Twitch, NewEgg and even Xbox from Microsoft accepts cryptocurrency payments. Asian Giant Rakuten, Ecommerce tycoon Shopify and American retailer Overstock.com all use these online payments.
Moreover, with Stripe, Shopify and Square online payments now accepting cryptocurrency as well, you will definitely find a smaller online stores accepting it as a payment.
There are no limits to spend your cryptocurrency tokens online from a consumer perspective. The list of merchants and websites keeps growing by the day, but with prepaid and debit cards, it is even easier now.
Get a prepaid card
Whether a prepaid or debit card, lots of cryptocurrencies now issue cards that can be used at any ATM around the world. These prepaid or debit cards can be cashed out or used at services. The cards automatically convert cryptocurrencies into several different currencies, including U.S. dollars and Great Britain pounds.
With many popular payment processing systems jumping on board, you may find that you are able to spend your cryptocurrency in many local and online shops. You can also be the wisest of your investor trading friends and just store them as Tether Tokens.