What is Tether and How to Use It
by Emma Feller
Tether (USDT) is the largest and most used stablecoin, a type of cryptocurrency that’s pegged to the value of fiat currency. It was created to give users a way to easily send and receive money, as well as quickly trade other cryptocurrencies. Because it offers all of the benefits of crypto without the volatility, it’s ideal for online payments and making deposits and withdrawals at online casinos.
Tether is pegged to the value of the US dollar and was one of the first stablecoins created. It’s now the third most popular cryptocurrency based on market capitalization, although other stablecoins have since been launched. Before you start using Tether for online payments and gambling, we recommend taking the time to understand how it works. In this guide, we’ll explain everything you need to know before you start using USDT.
How Tether Works
Although cryptocurrencies are designed for fast and simple online payments, their price volatility is often seen as a downside. If you’re trying to purchase something, it doesn’t help if the value of your currency is always changing. Big price movements are good for investors and traders but bad for the overall utility of the coin.
Stablecoins such as Tether are designed to solve this problem. Rather than being a speculative asset, the value of Tether is pegged to the value of the US dollar. This means that, in theory, 1 Tether can always be traded for $1, no matter what the market conditions are. It makes it ideal for trading other coins and also helps facilitate easier online payments. Rather than worrying about sudden changes in your coin valuation, you’ll always have the same amount of funds to use.
Like any other cryptocurrency, Tether operates on a blockchain, which means that transaction data is stored on a public chain that is impossible to tamper with. This allows it to operate without oversight and creates a high level of trust. Tether was originally based on the Bitcoin blockchain, but it also supports Ethereum, TRON, EOS, Solana, and other networks.
Unlike other cryptocurrencies which are more decentralized, Tether is owned by a company iFinex, which also operates an exchange. The coin is fully controlled by this company, which has led to some users not trusting it. However, iFinex does offer transparency when it comes to how the coin is pegged.
How Tether is Pegged
Tether is an example of a fiat-collateralized currency, which means that it’s backed by reserves of fiat currency, in this case, the US dollar. For each Tether that’s minted, the reserve holds one US dollar. This way, anyone can always trade their Tether for dollars if needed.
For full transparency, Tether updates a full breakdown of its holdings every day on its website. While the principle of fiat-collateralized stablecoin is that it backs every token 1:1 with the pegged currency, this isn’t always the case. Currently, the company holds around 85% of its reserve in cash, while the rest is spread between other investments.
You can easily purchase Tether from almost any cryptocurrency exchange, either with fiat currency or by trading any coins you already have. It’s important to use a trusted exchange, with most users preferring to use Coinbase, Kraken, or Binance, which are the top three. Once you buy, we recommend you send your Tether straight to a wallet.
You can find lots of different crypto wallets which are capable of holding Tether, and if you already own a crypto wallet, you may be able to use it, as Tether is supported on a number of different blockchains.
To send your Tether from your exchange to your wallet or crypto casino account, you simply need to copy the recipient address and paste it into the required box. Then enter the amount you want to send and choose the network you send over. Be aware that different networks may have different fees, and some may take longer to send than others.
Always make sure you choose a network that’s supported by both Tether and the address you’re sending to. Getting this wrong could result in your coins being lost. If you’re unsure, we recommend doing a small test transaction, sending the minimum amount possible.
There are lots of ways in which Tether is unique among other cryptocurrencies. Here are some of its main features:
Low Volatility – The main feature of Tether is that it has extremely low price volatility. In most cases, the price doesn’t rise or fall beyond $1 which makes it more useful for purchases and trading compared to other cryptocurrencies. While there have been instances where the price has changed, these movements have been small, and Tether has continued to allow users to trade for $1 per coin.
Reserve Backed – Tether is able to maintain its 1:1 ratio with the US dollar due to being backed by a fiat reserve. Tether aims to hold cash reserves matching that of the number of Tether coins in circulation. The company is transparent about its holdings, and you can check this on their website, with daily updates.
Support for Multiple Blockchains – Tether is available on multiple blockchains, allowing you to choose which network you use when sending or receiving your coins. This helps to prevent congestion and allows you to select the network that works best in terms of speed and costs. It also means you can store your Tether in existing crypto wallets.
The History of Tether
Here are some of the events in the history of USDT:
July 2014 – The stablecoin RealCoin was launched on the Bitcoin network.
November 2014 – RealCoin is rebranded as Tether and promises 100% backing from fiat for each token issued.
January 2015 – Tether is listed on the popular exchange Bitfinex.
November 2017 – Tether reports that a hacker has stolen $31 million in USDT, after which a hard fork is made to protect against further exploits.
2018 – At one point, tether accounts for 80% of all Bitcoin trading volume, with potential signs of price manipulation through creating more Tether tokens.
2019 – Tether trading volume surpasses that of Bitcoin, and it maintains the highest trade volume of any cryptocurrency today.
April 2019 – Tether and Bitfinex are investigated by the New York Attorney General, with allegations of money laundering and misuse of reserve funds.
February 2021 – Tether and Bitfinex agree to settle the case, paying a fine of $18.5 million and providing the NY Attorney General’s office with information on their reserves for the next two years.
May 2022 – Following the collapse of algorithm-based stablecoin TerraUSD, Tether’s value temporarily drops to $0.96 as the cryptocurrency market collapses. However, Tether continues to honor redemption requests at 1:1 with the US dollar.
Tether for Gambling
The nature of Tether makes it more suited to online gambling compared to other cryptocurrencies, as it’s less volatile while supporting fast and convenient payments. Crypto casinos, which are online gambling platforms that accept crypto deposits and withdrawals, widely accept USDT.
Crypto casinos offer thousands of exciting games and lots of great bonuses too. The experience is indistinguishable from a regular online casino, only it’s much simpler to get started. You can easily set up your crypto casino account and start playing using Tether, but there are a few things you should know first.
Tether Casino Regulations
The first crypto casino was launched in 2014, and since then, these sites have become very popular. However, regulations have been slow to catch up. For now, a lot of crypto casinos are unregulated in a lot of countries and regions around the world, and some players may not be able to access these sites.
However, if you are able to play at a crypto casino, it’s important to make sure that it’s licensed and regulated. Most crypto gambling sites are licensed by the Government of Curacao, and a license helps indicate which sites are safe and trustworthy.
Provably Fair Games
Tether casinos include a huge range of games for you to enjoy, all from top casino software providers. While you can play the latest games you’ll find at regular online casinos, these sites also include special crypto games built on the blockchain.
Games such as Dice and Crash use the blockchain to give you a way to verify for yourself that they’re fair to play. You can look up the seed and see all of the game’s transactions on the public blockchain, so you don’t just need to trust the casino’s word that it’s fair.
Is gambling with Tether legal?
That depends on where you live. You should check your local laws before you sign up and start playing to make sure you’re not at risk of prosecution. In most cases, you should be safe, especially if you sign up to a licensed and trusted crypto casino.
Can I claim Tether bonuses at a crypto casino?
Yes, all good crypto casinos offer bonuses that you can claim when you deposit using Tether. Before you claim your bonus, be sure to read through all of the terms and conditions if you want
Which online casinos accept Tether deposits?
You can find lots of online gambling sites and casinos which accept Tether for deposits and withdrawals. To sign up and start playing, take a look at our top-rated sites and read through our reviews to find one that suits you best.