How to convert usdt to usd on coinbase pro app

Note: sorry for the seemingly rudimentary question—as a newcomer I’m scared of doing something wrong and losing my money.

So basically I have USDT in Coinbase Pr I’d like to convert to USD —but for what I would imagine is a very common scenario, I can’t for the LIFE of me figure out how to do it without sending it to Coinbase and paying their fee.

I go to USD-USDT I can only place a Limit order, which is intimidating to me. Again, totally new to this but it just seems scary and totally prone to error how “unregulated” the text boxes are (kind of like typing in someones crypto address is like…incredibly exact and if you make a human error your moneys gone)

I just don’t know if there’s an obvious answer I’m missing—and if a Limit order is necessary, hearing someone else explain the steps instead of me just assuming from my limited YouTube knowledge would help put me at ease.

Thank you!!

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The fees are .005 percent so only half a percent for my boys that didn’t go to school compared to Coinbase .035 percent but it does have its problems like sometimes the app is down for weeks and I can’t login currently I can’t check my portfolio and it’s not like I got some old phone I got a 13 pro max so idk but the app has a lot of bugs Edit: as of rn I can’t log in on coinbase pro app it says wrong password it’s been doing this for over a week sometimes it works and it lets me log in then the next time I use the app I am logged out and it won’t let me log back in I have my password written down and I know I’m doing it correctly but this app is really bad and always breaking or down idk something is always wrong with this app so not to nice to see on a app we’re u might have a lot of money on
Another edit app got fixed for a little but app is broken again with same problem I enter in my password correct and after one correct attempt it tell me to many wrong attempts the computer works just fine but the app is always down for weeks at a time constantly idk why the problem keeps going away and coming back I’ve tried logging in on Wi-Fi and cellular I’ve tried everything it is 100 percent a the app if u don’t mind using the desktop to do your trades u should get this but if u need a app only for your phone or want a reliable app this ain’t for you trust me this app no bueno

What Is Tether (USDT)?

Tether (USDT) is a cryptocurrency stablecoin pegged to the U.S. dollar and backed “100% by Tether’s reserves,” according its website. Tether is owned by iFinex, the Hong Kong-registered company that also owns the crypto exchange BitFinex.

Tether was launched as RealCoin in July 2014 and was rebranded as Tether in November 2014. It started trading in February 2015. Originally based on the Bitcoin blockchain, Tether now supports Bitcoin’s Omni and Liquid protocols as well as the Ethereum, TRON, EOS, Algorand, Solana, OMG Network, and Bitcoin Cash (SLP) blockchains.

As of May 2022, Tether was the third-largest cryptocurrency after Bitcoin (BTC) and Ethereum (ETH), and the largest stablecoin with a market capitalization of nearly $83 billion. In April 2022, Tether’s USDT accounted for two-thirds of exchanges out of Bitcoin by value.

Key Takeaways

  • Tether (USDT) is a stablecoin, a type of cryptocurrency pursuing a steady valuation.
  • Tether is used by investors who want to avoid the volatility typical of cryptocurrencies while holding funds within the crypto system.
  • Tether’s parent paid nearly $60 million in fines in 2021 to settle two regulatory probes alleging it mishandled and misrepresented its reserves.

Understanding Tether

Tether belongs to a fast-growing breed of cryptocurrencies called stablecoins, which aim to keep the price of their tokens stable, most commonly by tying it to the price of a traditional currency like the U.S. dollar. (Tether also issues tokens pegged to the euro, the offshore Chinese yuan, and gold, none with more than a small fraction of the market cap of its U.S. dollar-pegged USDT tokens.)

The peg to a traditional currency, often backed by collateral reserves made up entirely or mostly of the pegged currency, is meant to ensure stablecoins aren’t subject to the same price volatility as more speculative cryptocurrencies like Bitcoin.

Tether updates a breakdown of its reserves holdings daily on its website. As of May 12, 2022, it was reporting assets of $81.3 billion for USDT. As of the same date, Tether reported holding 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unaffiliated entities, and 6.38% in other investments including digital tokens.

A stable value promotes the use of stablecoins as a medium of exchange like conventional money. As noted above, in practical terms, stablecoins have made it easier to speculate in cryptocurrency markets. Their rapid growth in popularity is also the result of stablecoins’ use as collateral by decentralized finance (DeFi) lending and staking protocols.

In May 2022, Tether’s price briefly fell to as little $0.96 following the collapse in the value of a different stablecoin, TerraUSD (UST), from an issuer not affiliated with Tether or BitFinex. The price of Tether tokens quickly rebounded to more than $0.99 and Tether said it was continuing to honor redemption requests that reached 2 billion tokens on May 12 at a 1-to-1 ratio to the U.S. dollar.

Controversy

In November 2017, Tether reported the electronic theft of $31 million in USDT tokens, after which a hard fork was performed. By then, the company was already dealing with critics questioning the adequacy of its reserves and, as subsequent investigations would show, having trouble accessing banking services.

In January 2018, Tether dismissed an accounting firm it had hired to perform an audit, citing “the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether.”

In April 2019, New York Attorney General Letitia James obtained a court order enjoining Tether and BitFinex parent iFinex from further violations of New York law, after determining that BitFinex had borrowed at least $700 million from Tether’s reserves to offset BitFinex corporate and client funds frozen and ultimately seized from its Panamanian banking partner Crypto Capital Corp. in a money-laundering probe.

In February 2021 Tether and BitFinex settled the case by agreeing to pay a fine of $18.5 million, discontinue trading with any New York state residents or entities, and to furnish information about its reserves to the New York Attorney General’s office for the next two years. By then, BitFinex had repaid the borrowings from Tether’s reserve after raising an additional $1 billion in funding in May 2019.

In October 2021, the U.S. Commodity Futures Trading Commission (CFTC) announced that Tether agreed to pay a $41 million fine “over claims that Tether stablecoin was fully backed by U.S. dollars.” In fact, “Tether held sufficient fiat reserves in its accounts to back USDT tether tokens in circulation for only 27.6% of the days in a 26-month sample time period from 2016 through 2018,” according to CFTC. Bitfinex agreed to pay a $1.5 million fine to settle separate CFTC allegations as part of the settlement.

How Is Tether Useful?

Tether helps investors move funds between cryptocurrency markets and the traditional financial system, minimizing volatility as a result of its 1-for-1 peg to the U.S. dollar. 

How Do I Buy USDT?

Tether tokens can be bought and sold on cryptocurrency exchanges including Binance, CoinSpot, Bitfinex, and Kraken.

Is Tether a Stablecoin?

Yes, Tether is the first and best-known stablecoin in the crypto world. Other stablecoins include True USD (TUSD), Paxos Standard (PAX), and USD Coin (USDC).

How Does Tether Stay at $1?

While Tether has dropped below $1 before (and risen above its peg) on occasion, it can remain near that price so long as it continues to redeem USDT tokens for $1 each, and as long as investors continue to believe issuance proceeds are fully reserved with liquid collateral assets.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own cryptocurrency.

Written by Jane