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The sole purpose of Tether is to sell your Bitcoin (or whatever cryptocurrency) for "dollars". The quotes are important because these "dollars" are not real dol
by defen 8y ago
The sole purpose of Tether is to sell your Bitcoin (or whatever cryptocurrency) for "dollars". The quotes are important because these "dollars" are not real dollars that you can actually do anything with; they're just a number. Imagine if you had a million dollars in your bank account but there was literally no way to use those dollars to purchase any real-world goods or services. That's what tethers are. Why would you do this? Maybe you think Bitcoin prices are going to drop and you want to "lock in" your dollar value.
When you want to actually get real dollars, you have to use your tethers to purchase Bitcoin, then transfer the bitcoin to a real exchange that does real KYC (Gemini, Coinbase, etc), then sell on that exchange for real dollars, which can then get transferred to a real bank account.
- tim333 8y agoYou can change your USDT to real USD at Kraken.
- defen 8y agoGood to know! I assume they do proper KYC? Do they exchange at 1:1 or do they take a percentage?
- nostrademons 8y agoIt's a market, but has generally been trading (and continues to trade) at very close to 1:1. It broke the peg last November when there were rumors then of Tether's insolvency, going to down $0.85:1 at one point.
- tim333 8y agoProper KYC, regulated, based in SF, competitive rates. Just now they quote $0.9694. Usually it's nearer $1 but I guess people are selling a bit. Commission is like 0.16%.
- ac29 8y agoIt should be noted that that are not registered with the State of New York, and have already been subject to investigation: https://en.wikipedia.org/wiki/Kraken_(company)#New_York_Attorney_General_Inquiry https://en.wikipedia.org/wiki/Kraken_(company)#New_York_Atto...