While cryptocurrencies are pretty attractive, given the fact that they provide you with instant transactions, and no banks nor authorities to track those transactions, people often avoid using them due to their volatility and frequent fluctuations of their value.
But then, in 2014, a different digital currency was launched, that provided users with the things other cryptocurrencies lacked, called Tether. Why use Tether? What’s so special about it?
…is a unique cryptocoin that functions as a bridge between digital and fiat currencies. It was first issued by Tether Limited in 2014, with the aim to provide greater stability to all potential coin holders. Even though it uses Bitcoin’s blockchain, it is actually based on the Omni platform which provides it with greater transparency and security. How?
Well, each Tether coin is the digital equivalent of the fiat US dollar currency. In fact, it is usually marked with the USDT acronym. The thing is, any time you want to sell or buy Tether, you will get the same value of the US dollar at the moment. That helps the coins stay stable, and even though there may be fluctuations in value, they won’t be as drastic and as often as with other cryptocurrencies. Its value will actually depend on the US dollar’s value at a specific moment you want to buy it or sell it. Meaning, 1 Tether (USDT) equals $1 (USD).
…its volatility won’t go through many changes as with other cryptocurrencies, mainly because it is supported by central banking institutions and authorities that control the fiat currency. On that note, the coin convert euro and Chinese yuan to digital currencies, as well, just like it can convert US dollars. So you currently have three currencies at your disposal.
And, even though originally based on Bitcoin’s Omni layer, later it added a new transport layer on the Ethereum blockchain, it is now available as ERC20 token on Ethereum’s decentralized applications and smart contracts.
…it is the mean used to facilitate the use of fiat currencies in a digital manner, via a more modern approach, giving users the chance to transact with traditional fiat currencies across the blockchain without the complexity and inherent volatility typically associated with cryptocurrencies.
Getting Started with Tether
In order to start using Tether…
…you would first need to create an eWallet where you’ll hold your future coins. The best part is that you don’t even have to look for wallets across the internet and explore them to find the one that suits you most. You have the wallet on its official website.
You would need to go to its official website and start the registration process, on-site. You’ll need to enter some basic information, such as an email address, and proceed to verification. After the team has verified your wallet, you need to fund it with fiat US dollar, euro or Chinese yuan. You can do that via a regular bank transfer, or other traditional payment methods. Once you’ve funded the wallet, you will get the equivalent of the amount you deposited in Tether coins.
Contrary to other cryptocurrencies…
…transactions with Tether can be reversed, but you should still be careful when making deposits and withdrawals since the reversing process could be subject to pretty significant fees.
Speaking of fees, you should know that a 0.1% fee applies for fiat to digital currency transactions. When you make deposits and withdrawals with the cryptocurrency itself, no fees apply.
Using Tether across Online Casinos
In the past couple of years, this cryptocurrency has been gaining more and more exposure and public appreciation. Many major companies have incorporated it in their banking sections, so normally, it also caught the online gambling industry’s attention. In fact, today, you will find many online casinos that in addition to traditional payment methods, also accept Tether.
To start using it across online casinos yourself, you would just have to go through the procedure described above. Therefore, you would have to create your eWallet and fund it with fiat currencies that would automatically be converted into the cryptocurrency. Once you do that, you would have to choose a casino that accepts the cryptocurrency, and you can start enjoying your favourite online casino games.
Deposits and Withdrawals with the Cryptocurrency
Once you’ve made your decision on the casino to join and created your Tether eWallet, you are ready to make your first online casino deposit with the digital currency. If you’ve ever used cryptocurrencies for gambling online, you will be pretty familiar with the depositing process.
To fund your casino account with coins…
…you would have to go to the casino’s Banking page and click on the Deposit section. In there, you should look for Tether’s logo, and once you find it, you should click on it. This is where you’ll need to enter the online casino’s wallet address, ergo, the public key, as the designated destination for the amount of coins you wish to deposit.
Again, make sure you’ve entered the exact wallet address since you don’t want the coins to end up on someone else’s wallet. You could get them back, but you’ll probably need to pay fees for the reversing process, so make sure you double-check the address to avoid this inconvenience. Once you do that, confirm the transaction, and the coins will be on your online casino balance, to be used as it suits you.
…your winnings from the casino, you would need to go to the Banking page again, but this time, you need to click on the Withdrawal section. Find its logo, and click on it. This time, you would need to enter your eWallet address, so that the coins you have on your online casino account could reach your eWallet. Add the amount you wish to withdraw, and confirm your request. But before you click on Confirm, make sure you’ve met all the wagering requirements, in case you’ve claimed a bonus or a promotion that had any wagering requirements attached to it.
Also, even though you have the option to withdraw your winnings in fiat currencies, you should know that fees would apply.
Benefits and Drawbacks
All things considered, the benefits you get by using this cryptocurrency prevail when compared to the drawbacks. But, as with any other digital or fiat currency, Tether also has a few downsides.
Let’s start with the perks…
…you can get with it. The first and most obvious advantage you get for using it is its stability. It is called stablecoin for a reason. The fact that it maintains the same value as the currency it is related to (US dollar, euro, or Chinese yuan), makes it more appealing to users than any other cryptocurrency which undergoes frequent fluctuations. The only way its value could change is if the value of the fiat currency changes, but compared with the constant changes in the value of other digital currencies, the changes in its value would be very rare.
On that note, you have the fact that this digital currency maintains transparency at all times. The fact that one coin equals one US dollar (or euro or Chinese yuan), and the fact that at any given moment, the company can liquidize withdrawals made by holders, makes it completely organized and transparent. In fact, whenever you go to its official website and click on the Transparency page, you will see the company reserves being regularly updated to guarantee stability.
Top-notch security is another benefit you get for using this digital currency. The blockchain technology has proven to be extremely secure over the years, but both the Omni platform and the ERC20 allow for coins exchange in a completely secure can legally-compliant way, as well. Go to its official website, and you can read all about its compliance with the AML and KYC standards.
And then, of course, you have the instant transactions. While this is an advantage most cryptocurrencies offer, this digital currency’s potential to be used as a bridge between fiat and digital transactions, without value changes, in practically minutes, is what makes Tether unrivalled.
But, probably the biggest advantage is that you can buy your coins whenever you want just by funding your wallet with your fiat currency, and without long waiting times, you’ll have the money converted into coins right then and there. With any other cryptocurrency, you would have to go through several procedures in order to obtain coins and find wallets to store them.
…you have the fact that this cryptocurrency has taken the world by a storm. Although initially available to regular exchanges, it gradually entered the biggest e-commerce businesses scene. Today, many payment processors, ATMs and financial services can use fiat currencies on blockchains thanks to it. Its availability across online casinos is quite impressive, as well, with more and more sites accepting it in addition to other traditional methods.
On the downside…
…you have the fees that apply. Sure, they are not as big as with most conventional payment methods, but you will still be charged with a fee from 0.1% to 3%, depending on the fiat withdrawal amount. But if you consider all the perks you get for such small fees, you can still be unsure whether to think of these fees as a disadvantage or an advantage, really.
Another disadvantage is the fact that if you’re a US player, you cannot actually use it. As of January 1, 2018, redeeming services and issuance services are not available to US players, or any US individual or corporate customer for that matter.
This brings us to the last drawback
In the past few years, after indications appeared that Bitfinex exchange platform’s owners were actually the leading officials of Tether, users were left at unease. Especially when Bitfinex pulled out from the US market, and later, so did Tether. Although they both recovered from the backlashes from the cryptocurrency world, this controversy has left a mark on Tether’s reputation. Nevertheless, statistics show that thousands of users are still trusting it, no matter what, and enjoying all of its benefits.
Will I ever find Tether offered across US online casinos?
Probably not. As the company indicated, exceptions may be made in its sole discretion, but otherwise, no redeeming or issuance services are available to US users.
Are there any other country restrictions that I should know of?
Other than citizens of the US, citizens of Crimea, Cuba, Iran, the Government of Venezuela, North Korea, Syria and Pakistan are prohibited from using the Tether platform. Users from any other country can get access to it and use it as it suits them. Naturally, individual countries’ laws apply when it comes to cryptocurrencies, so before you get all excited and get started with it, make sure you check your country’s rules related to cryptocurrency use.
It is obligatory to go through the KYC process?
If you want to redeem or issue USDT, CNHT or EURT, it is obligatory to go through the company’s KYC form and approval process, due to the fact that the company adheres to all government regulations and compliance.
If I want to reverse my transaction, who do I contact?
First, you can try contacting the online casino’s Support team to see whether they could solve your problem with the transaction. Most likely, you would have to contact Tether’s own Customer Support. Go to the official website and click on the Contact Us page. You will find the contact options there.
Is it possible for its value to rise, just like it could be noted with Bitcoin’s price in the past?
As long as the company maintains its principles and ideas, no price change is predicted for this digital currency. Its value is equal to the value of the fiat currencies available, so it is highly unlikely that that would ever change.