How to buy Tether in UK

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About Tether

Tether or USDT is a cryptocurrency conceived as a stablecoin that maintains a 1:1 parity with the dollar or as close as possible. This is how Tether gives its holders the peace of mind of maintaining a stable price of $1 with all the advantages of cryptocurrencies.

It is generally used by those who trade cryptocurrencies such as Bitcoin to protect capital from volatility. This is because it is easier, faster and also cheaper to convert one cryptocurrency for another, than for fiat money (local currency).

Its platform runs on the Bitcoin and Ethereum blockchain network, in addition to other smaller ones. Therefore, Tether is a cryptocurrency that is very easy to integrate into any platform, which makes it possible for USDT to be present in many exchanges. Among these, Bitfinex and Binance stand out, being Tether a cryptocurrency directly related to Bitfinex.

All this has made USDT the most widely used cryptocurrency, accumulating many more transactions daily than Bitcoin or Ethereum. Because in the end, those who trade cryptocurrencies end up converting everything to Tether. And this is exactly why Tether always remains among the top 10 cryptocurrencies, even though it is only worth $1.

Future prospects for Tether

It is practically impossible for Tether to disappear, such an outcome would be like eliminating the dollar as a currency can you imagine, neither can we.

It is widely used and being the safe haven cryptocurrency of all cryptocurrency traders, Tether will never lose value or validity.

So, if you want to convert your money to cryptocurrencies, but not be at the mercy of volatility, Tether is the cryptocurrency for you.

What advantages does it offer?

Being a stablecoin the main advantage, and the one from which others derive, is from the fact that it will always hold its value. This makes Tether not only used by cryptocurrency traders, but also by companies that are beginning to accept cryptocurrencies as a means of payment.

And another of its great advantages is that transactions with Tether have a minuscule commission which makes them very cheap. Not only in exchange with other cryptocurrencies but also as a way of transferring money in the best remittance style and with practically no commissions.

Finally, it is the cryptocurrency with the highest convertibility rate since, being stable, it is accepted in transactions with any other currency, whether crypto or fiat.

What types of financial instruments can you trade?

Equities

Now let's discuss the most well-known instruments: stocks. Stocks are the parts of publicly traded companies. It is possible to be a shareholder of a company and obtain a profit, but first, you should know where and how to invest your money.

We could say that there are two main types of shares: the ones that divide their earnings regularly among the stockholders, and those that don't. The former ones are great, of course, but investing in the latter can also be a good idea since sometimes you can make even more money by selling the shares later.

If you invest in equities that payout, you will receive the funds into your broker account, and you can withdraw them or invest back. However, you can take advantage of compound interest, so our suggestion is that you reinvest in the company if you don't need the money immediately.

If you trade with stocks on this broker, you will be able to use leverage to “dope” your trades. However, we don't recommend that, since it would be a CFD and you would not receive dividends. On top of that, as shares tend to be long-term investments, you will have to pay commissions during the time your operation is open.

Index Funds

If a long-term investment sounds like something you would do, and you won't need to withdraw your money in five years or maybe a decade, index funds can be the best alternative. This kind of investment is also suitable for beginners since the risks are much lower.

You may think differently, but beating the benchmark is far from being a piece of cake and very few fund managers achieve that, apart from some specific cases, like Warren Buffett's.

In practice, all that glitters is not gold: if a fund manager achieves to beat the market, it is only for a short period or on a specific occasion. Or perhaps they would charge very high rates and indexing would be a better decision.

With index funds, you won't be concerned about that: most of the time, they beat active managers in the long term, and the rates are minimal.

Currency market

What is known as Forex trading consists in the exchange of currencies. In other words, is the conversion of one currency to another, and the aim is, evidently, to make a profit out of this.

If you decide to exchange EUR and USD, you buy euros at their price in dollars, with the expectation that after obtaining the first currency (the euro) it will revalue compared to the second (the dollar), to make a profit by selling it. Suppose you entered when the price of one euro is 1.10 USD and you close when the price has gone up to 1.15: that difference is yours once you sell again.

You may be thinking by now that this form of trading requires high investments, and you are not wrong, because fluctuation in prices is never that dramatic, and often you will need to use high leverage (which is an important risk). In case you are just starting in trading, it is not a good idea to begin with this market, because it is very risky and complex.

This broker allows exchanging the most popular currency pairs. Still, remember that in this market sales are made through contract for differences, which means you will not be the owner of the underlying asset.

About Contracts for Difference

You probably have seen the acronym CFD now and then if you entered this broker before. We will come back to it, but first, you should know that cryptocurrency trading on this broker is only CFD if you go short or leverage higher than x2 (although the platform does not even allow this option).

In case you are thinking about day trading cryptocurrency or other practices, next we will also refer to concepts such as leverage and “going short”.

With CFDs you can operate on this broker even if you are “in red” or don't have a positive balance. Let's say that you believe that the Tether will go down, so you clearly think “if it is going to depreciate (go down in price), I simply refrain from getting in and I'll go in when it has gone down”. However, if it really falls, it might mean extra money for you.

You can do this through a practice known as “going short”. Its operation, roughly, consists in the following:

  • Someone lends you, for example, 100 units of Tether, valued at a total of $ 5,000 (these numbers are imaginary)
  • Then, you make $ 5,000 by selling them at the market price
  • The Tether devaluates from $ 50 to $ 30
  • Again, you purchase the 100 units, but now their price is $ 3,000
  • Now you return the 100 units
  • You save the $ 2000 difference!

It is far more simple than it may seem. Just know that by trading in Tether on this broker, you can make a profit when you anticipate the price will fall.

Trading with leverage

If you still don't know what “leverage” is, we'll put it short: it is, simply, the ability to use a higher amount than you actually have. For example, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.

Leverage and the importance of “Take Profit” and “Stop Loss”

Assuming that, for example, you are certain that Tether price is going up, and that you have $ 1,000 for “going long”, you should know that you can increase your investment and earn higher profits.

There's the possibility of requesting a credit at your bank, but you must know that all the process takes time, and when you receive the money, Tether might be already at a much higher price, so you wouldn't be able to invest the way you planned.

Leverage is like a loan, but it is only a few clicks away! the broker allows you to operate with much higher amounts than what you actually have on the platform's wallet. Before trading, you will be able to choose between the different options as in the screenshot below:

apalancamiento

With other assets, you can use more leverage. Why? Because leverage is most used for short-term operations, and cryptocurrencies tend to be a medium or long-term investment. Let's talk a bit more about how leverage works.

You begin with $ 1,000 and pick leverage x2, which means you would really invest $ 2,000, since your broker would put the other $ 1,000.

A week after that, Tether goes up and now the value of your investment is 20% higher, which means, you have $ 2,400 in Tether. But you don't want to be too reckless, so you decide, wisely, to sell again.

Obviously, the 1k $ from leverage will be deducted, and you'll have $ 1,400 left, of which $ 1000 is the money you put in yourself, so the net profit is $ 400.

By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment.

But there's always a downside. If everything goes ok and the asset increases, you will make profits. On the other hand, if the asset decreases, you will also lose more money than you invested.

Let's imagine that the asset didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but double, $ 40. Because of that, the concepts of Take Profit and Stop Loss are fundamental when using leverage.

Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.ย 

If you bought Tether at $ 100, you request the broker to close when it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to wait a bit longer in case it keeps rising, which could make you lose it all.

Stop Loss is even more important, particularly when trading with leverage, since a small loss could be fatal for your wallet. Take into account that your broker will recommend a limit for Stop Loss, but it is better to place it closer to current price than that.