How to buy crypto
How to Buy Crypto Guide + Get to Know USDT
In today’s digital age, cryptocurrency has become a significant topic within finance. This rise of digital/virtual assets provides new opportunities for investors but also comes with risks. This article will delve into how to buy crypto, with valuable tips whether you’re a beginner or an experienced investor.
This article discusses the basics of purchasing cryptocurrencies, starting with an understanding of what a US dollar stablecoin is. USDT (Tether) is an important currency for buying other cryptocurrencies like Bitcoin, Dogecoin, and Ethereum.
If you’re a newbie, these pointers will help you succeed in the cryptocurrency market.
What Is Cryptocurrency?
Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a peer-to-peer system allowing anyone to send and receive payments globally. Cryptocurrencies are not physical but digital assets secured with cryptography. They operate outside of a central authority and are recorded and created through a decentralized system. The foundation of cryptocurrency is blockchain technology, which ensures the security and transparency of transactions. Despite this, investing and using cryptocurrencies should be approached with caution due to market volatility and risks.
The Core Technology of Cryptocurrency: Blockchain
The foundation of cryptocurrency is blockchain technology, a decentralized ledger system. Transactions are recorded in blocks across different computers, each containing the latest transactions and a history of the preceding block. These blocks are updated synchronously, documenting all transactions and holdings.
The blockchain ledger is distributed across multiple computers, visible to everyone, and once verified, transactions are immutable on the blockchain. Each block contains about ten minutes of transactions, is secured with encryption, and then broadcasted to the blockchain network.
Cryptocurrency vs. Traditional Fiat Currency
Fiat currency is government-issued legal tender, with its value based on market trust and government edicts. Some countries or banks peg their currency to foreign currencies, maintaining exchange rates through foreign exchange reserves. The supply of fiat currency is typically controlled by the government with no fixed limit.
Differences Between Cryptocurrency and Fiat Currency
The differences between cryptocurrency and fiat currency will be described in five key points: decentralization of power, limited issuance, anonymity, transparency, and irreversibility. The most significant difference is “decentralization of power,” meaning decentralized versus centralized. This article won’t focus on the technicalities but for a detailed introduction to decentralization, check out the article 👉🏻 Decentralization in the Blockchain : Unveiling the True Meaning
| Cryptocurrency (Crypto) | Fiat Currency (Fiat) |
|---|---|
| Fixed rate of issuance according to pre-set rules | Issued by the government |
| Decentralized (no government control) | Centralized (controlled by the government) |
| Limited issuance (Most cryptocurrencies have a fixed maximum supply) | Unlimited issuance (government issues as needed) |
| Value determined by market | Value determined by the market and regulations |
| Held individually | Transmission via third party |
What is USDT (Tether)?
USDT, also known as Tether, is a type of stablecoin anchored to the value of the US dollar. It is designed to maintain a 1:1 value ratio with the USD, ensuring its stability. For every USDT token, there is an equivalent reserve of US dollars held in designated bank accounts, which supports its value. The primary purpose of USDT is to mitigate the volatility commonly associated with cryptocurrency markets, positioning it as a medium of exchange and a store of value rather than a purely speculative asset.
The pegging of USDT to the dollar enables it to be widely used across cryptocurrency exchanges, facilitating crypto transactions. Stablecoins play a pivotal role in the crypto market by providing liquidity and price stability, making trading simpler and more predictable. Tether is one of the leading stablecoins available, and users can trade it on various exchanges, including 8V Exchange, Binance, Huobi, Bitfinex, and Kucoin.
USDT Details (November 2023)
| Attribute | Details |
|---|---|
| Name | USDT, Tether |
| Official Website | Tether |
| Network | ETH, TRX, EOS, BCH, ALGO, Omni, SOL, TEZOS, NEAR |
| Price | Pegged to the US Dollar |
| Market Cap | $85.46 Billion |
| Market Cap Rank | 3 |
| Trading Volume | $27.52 Billion (24 hours) |
| Year Issued | 2014 |
| Issuing Company | Tether |
| Security | High |
| Fungibility | High |
| Is it a scam? | No |
USDT Tether Benefits
- Risk Mitigation: Tether (USDT) can reduce the risk investors face due to the extreme volatility of cryptocurrency prices. It offers a way to avoid sharp price declines and is relatively cheaper to convert into fiat currency. Therefore, converting cryptocurrencies to USDT and then to fiat can save on transaction fees.
What Can USDT Be Used For?
- Value Preservation: USDT is a stablecoin closely tied to the dollar, allowing users to avoid the extreme volatility of cryptocurrency prices. Holding USDT can maintain asset stability when the cryptocurrency market is unstable.
- Trading: USDT is often used as one of the basic trading pairs on cryptocurrency trading platforms. Investors use USDT to trade other cryptocurrencies as it provides a stable value benchmark and simplifies trading.
- Fiat Conversion: Many cryptocurrency exchanges allow users to convert USDT into fiat currencies like USD or EUR. This enables investors to easily convert their cryptocurrency assets into cash for withdrawal or daily expenses.
- Inter-exchange Transfer: USDT is highly liquid across different cryptocurrency exchanges. Investors can use USDT as a medium for transferring funds across platforms, facilitating easier trading across different exchanges.
How to Buy Crypto Guide
- If you are entirely new to purchasing cryptocurrency, you will need to use 8V’s exchange feature or a credit card to convert fiat to USDT before buying other cryptocurrencies.
- Credit Card Purchase Guide: 8V One-Click Funding Feature supporting over 200 cryptocurrencies.
- Download 8V APP: https://download.8v.com
Using the 8V “Exchange” Feature:
- Open the 8V homepage and enter the “Exchange” feature.
- Select the fiat currency you want to pay with.
- Choose the amount you want to pay, the system will automatically calculate the equivalent USDT amount.
- Confirm the buy/sell price.
- Click “Quick Exchange,” and USDT will be credited to your 8V wallet.
How to Deposit Cryptocurrency to 8V:
- Open the 8V homepage and go to the “Assets” page.
- On the “Overview” page, click “Receive.”
- Select the cryptocurrency you want to deposit, e.g., USDT.
- Choose the network (chain) you want to use for the transfer, e.g., TRC20.
- Click any receive address and copy the address.
- On the exchange you’re transferring from, enter the address you just copied.
- Confirm the chain matches and the address is correct to avoid losing funds in the blockchain.
- Wait for the confirmation time, typically within 2 hours for successful deposit.
- After depositing, you can track the progress in the “Receive Record” page.
Once you’ve confirmed that your wallet has sufficient USDT, you can start to buy the crypto of your choice, such as Bitcoin (BTC) or Ethereum (ETH). You can utilize the “Spot Trading” feature to trade cryptocurrencies that are circulating in the market. For detailed steps on spot trading, please refer to the following guide: Complete Guide to Spot Trading.
In Short
The rise of cryptocurrency is changing the financial world, drawing attention from governments and financial institutions globally. This introduction to deposit and withdrawal methods, as well as the definition of a US dollar stablecoin, is just the beginning. With a willingness to learn the basics of how to buy crypto, anyone can enter this fascinating field. Explore this market full of peculiarities and potential!