Tether (ticker: USDT) is a controversial name within the cryptocurrency space, but the coin itself, under the right conditions, is a perfect pick for online casino play.
There are key differences between Tether and other cryptocurrencies which give it important advantages and disadvantages when it comes to online gambling, and it’s important to understand these before you gamble with Tether.
What is Tether?
Tether is a stablecoin, which means it is designed to remain pegged to the value of a fiat currency.
In the case of Tether this is the US dollar, which means 1 Tether coin should always equal 1 US dollar. However, historically this hasn’t always been the case.
Stablecoins like Tether were initially created to allow cryptocurrency traders to have a coin into which they could swap their investment without having to cash out to fiat currencies.
This meant they were protected from the volatility of the crypto markets and, in some countries, didn’t trigger a taxable event.
Tether was the first stablecoin on the market, launching as RealCoin in 2014, and has since grown to be the largest by market cap, almost double the size of its nearest competitor, with 78 billion Tether tokens in circulation.
It’s not clear when Tether was first accepted at online casinos, but certainly by 2017 there were many options for Tether gambling, meaning crypto casinos probably began accepting it around 2016.
Which blockchain should you use for Tether gambling?
Unlike the likes of Bitcoin, Ethereum, and Dogecoin which all have their own proprietary blockchains, Tether has no set blockchain.
It started out on the Ethereum blockchain but it can now run on seven different blockchains, each of which has its own balance of speed, security, and privacy.
The most secure blockchain Tether runs on is still Ethereum, but it is also the slowest and the most expensive, with Ethereum transactions currently in the double and sometimes triple digits.
On the flip side, the TRON network is extremely fast and cheap, making it perfect for microstaking with Tether, but it is not as secure or as private as Ethereum.
Each Tether casino chooses the blockchains on which it accepts Tether tokens, so make sure you are clear of the transaction times, costs, and levels of privacy of these blockchains before you gamble with Tether.
And whatever you do, don’t mix up your blockchains with the transfer or you won’t get the coins back!
Benefits of Tether gambling
Tether’s main advantage is the fact that it is designed to be pegged to the dollar so you know exactly how much you’re wagering in real terms.
It is not uncommon for Tether to fluctuate 5% either side of its dollar peg at times of market volatility, but it soon returns to its peg, and rarely lasts for more than a few hours.
This lack of volatility ensures that you can leave some of your pot in reserve without fearing that it will lose its dollar value.
When used on a blockchain such as the TRON network, Tether can also be deposited into your account in a matter of seconds, while the speed at which these transactions take place makes microstaking possible.
Regardless of the blockchain a player chooses, another benefit of using Tether is that all the player shares is an address that doesn’t in itself link to them, or any particular person in the world – it is just a string of letters and numbers.
Another benefit of using Tether is that most countries don’t consider Tether to be a currency.
This means there are no laws against gambling with Tether where there are laws against gambling with fiat currencies.
This opens the gateway to many different Tether casinos for players, massively increasing user choice and improving the crypto gambling experience.
Gambling with Tether can also save you money.
Wins can be converted to cash without the involvement of a bank, and being pegged to the dollar means you can tell at a glance how much you will be receiving.
Depending on the blockchain you use, these transactions can also be conducted with no prying eyes watching.
Tether casinos also almost always have bigger welcome bonuses than fiat casinos, with multiple Tether tokens often available to players as opposed to the limits that are placed on fiat casinos.
Drawbacks to Tether gambling
The biggest drawback over Tether gambling is the concern over whether its monetary reserves cover all the tokens it has issued.
Less than 4% of the 78 billion USDT tokens in existence are backed by cash in its vaults – the rest is backed by a variety of financial instruments and loans.
This has led to concerns in some quarters that Tether could one day default on redemptions, causing the whole thing to collapse.
However, this has never come close to happening in Tether’s eight-year history.
The only other drawback to Tether gambling, as we have discussed, is the fact that the coin exists on multiple blockchains which has a direct impact on gameplay and can be quite confusing for newcomers.
This fact also has the knock-on effect that you need to have a small amount of ‘gas’ in the native currency of your chosen blockchain in order to send your Tether tokens.
For example, if you decide to send Tether on the TRON blockchain you will need to fund the transaction with a small amount of TRX (the TRON network token).
This can be irritating if you don’t already have any spare, but you can buy some at the same place you bought the Tether.
Some Tether casinos will take care of this for you, but the gas fee will come from the Tether you are withdrawing, meaning you end up with less actual Tether arriving at the other end.
What are Tether slots?
Tether slots are very similar to regular online slots, except stakes and wins are made in USDT tokens.
The games are the same, the playability is the same, and the odds are the same, with the only major differences being that Tether slots have higher limits than fiat slots.
When used on fast and cheap blockchains, players also have the ability to place microbets, sometimes as low as $0.01.
There is also the added benefit of knowing that players can, at any time, transfer their Tether tokens back into their local currency and withdraw it.
What are Tether table games?
As with Tether slots, there are many similarities between Tether table games and regular casino table games.
All the usuals are there – baccarat, poker, and blackjack for example – and with the benefits of betting with Tether, players can have an even more enjoyable experience.
The best Tether casinos also have top quality live action table games, with real croupiers in place to keep the gameplay coming.
Where can I buy Tether?
Buying Tether has never been easier.
Almost every cryptocurrency exchange allows you to buy Tether with a credit or debit card, or you can buy directly from Tether itself at www.Tether.to.
Once the Tether is in your wallet you can send your coins to your Tether casino of choice.
There are however one or two things you need to be careful of before you buy up your first USD tokens.
We can’t tell you where to buy your Tether, but it is important to make sure you do your own research into which are the most reputable exchanges on which to buy it.
At the very least you should research any exchanges you have heard about.
Make sure, too, that the exchange you’re buying from allows you to withdraw the Tether you buy – some don’t, which of course is no good if you want it for Tether gambling!
Be aware, too, that fees will be taken off at source when you buy your USDT tokens, so make sure you know what they are before you transact.
Many exchanges charge a fixed fee rather than a percentage, so bear that in mind if you intend to buy more than once.
Some Tether casinos allow you to buy Tether directly from them, but the fees here are often higher, so make sure you do your due diligence before choosing that option.
Best Tether wallets for gambling
Once you’ve bought your Tether you will want to store it in a wallet before you send it on to your Tether casino.
Leaving it on an exchange is not a great idea for security reasons, while some exchanges do not allow holders to send their Tether tokens to online casinos.
Which wallet you choose will be dictated by which blockchain you intend to use. This in itself will be bound by which blockchains are supported by the exchange from which you buy – if it only supports the Ethereum version of Tether, then you need to find an Ethereum wallet in which to store it.
Once you’ve decided where you will buy your Tether, find out what Tether blockchains that exchange supports and then conduct your own research to see which wallet would be best.
The good news is that exchanges that support multiple Tether blockchains will let you swap your blockchain and re-withdraw on a different blockchain, so you’re not bound by one blockchain forever.
The key thing to remember about Tether is that you are your own bank – there is no customer service on hand if you send to the wrong blockchain.
For this reason you should take the storage, and sending, of your Tether very seriously.
As we have found, there are a number of positives when it comes to gambling with Tether.
The fact that it is pegged to the dollar makes wager calculations easy and the value of your holdings will not be exposed to the volatile price action of other cryptocurrencies.
However, with seven blockchains to choose from, Tether gambling requires a bit of education in order to avoid making some expensive mistakes.
Tether casinos carry a large amount of quality games with the potential for big wins, and for those willing to educate themselves on how Tether works, the rewards outweigh the negatives.