Tether (USDT) stands as the pioneering stablecoin in the cryptocurrency world. A stablecoin is a type of digital currency specifically designed to maintain a consistent value, typically pegged to a specific fiat currency like the US dollar. USDT was first introduced in 2014 under the name Realcoin before rebranding to Tether.
Its primary purpose is to combine the benefits of blockchain technology with the stability of traditional currency, making it a popular choice for trading, transfers, and as a safe-haven asset during market volatility.
What is the current value of USDT on Binance?
The value of USDT is algorithmically maintained to be as close as possible to 1 USD. On Binance, you can view the real-time trading price, which is influenced by supply and demand on the open market but remains extremely stable.
For the most precise and up-to-date valuation, always check the exchange directly. The price is typically displayed as a trading pair, such as USDT/EUR or USDT/USD.
What is the difference between USD and USDT?
While both aim to represent one US dollar, they are fundamentally different assets.
- USD (US Dollar): This is traditional fiat currency, issued and regulated by the US government. It exists as physical cash and digital entries in bank accounts.
- USDT (Tether): This is a cryptocurrency token issued on various blockchains (like Ethereum and Tron). It is designed to be digitally traded and is backed by reserves held by the company Tether, aiming for a 1:1 peg to the USD.
The key distinction is that USD is centralised legal tender, while USDT is a decentralised digital asset that mimics its value.
Which is better: USDT or BUSD?
Both USDT and BUSD (Binance USD) are major stablecoins pegged to the US dollar, but they have different issuers and underlying structures.
- USDT: Issued by Tether, it is the most established stablecoin with the highest trading volume and liquidity across countless exchanges. This makes it incredibly widespread and easy to trade.
- BUSD: Issued by Paxos in partnership with Binance, it is known for its strict regulatory compliance and fully audited reserves. Many consider its transparency a significant advantage.
For the average user trading on Binance, both are highly reliable. The "better" option often depends on the specific trading pair, liquidity for that pair, and personal preference for the issuing entity's transparency. BUSD is often the native stablecoin for many functions within the Binance ecosystem.
👉 Explore more stablecoin strategies
What is the difference between USDT and BUSD?
The main differences between USDT and BUSD lie in their issuance, regulation, and the blockchains they operate on.
- Issuer: USDT is issued by Tether Ltd., while BUSD is issued by Paxos Trust Company.
- Regulation and Transparency: BUSD is regulated by the New York State Department of Financial Services (NYDFS) and undergoes regular audits. Tether has also increased its transparency efforts but has faced more public scrutiny in the past.
- Blockchain Availability: Both tokens exist on multiple blockchains, but their primary networks may differ (e.g., USDT is heavily used on Tron, while BUSD is an ERC-20 token on Ethereum).
For daily trading and arbitrage, most traders focus on the market price and liquidity of the trading pairs rather than the issuer, as both maintain their peg effectively.
How to Sell USDT on Binance
Selling USDT on Binance is a straightforward process. You can do it through several methods:
- Spot Market: Navigate to the USDT trading pair (e.g., USDT/EUR) on the Spot trading interface. Place a sell order at the current market price or set a specific limit price.
- P2P Trading: Use the Peer-to-Peer (P2P) platform to sell your USDT directly to another individual for fiat currency. You can set your own payment terms and preferred price.
- Convert Feature: Use the simple "Convert" function for a quick and easy sale at a predetermined rate, ideal for smaller amounts.
After initiating the sale, the funds (either fiat or another cryptocurrency) will be credited to your Spot Wallet.
How to Get USDT on Binance
There are multiple ways to acquire USDT on the Binance exchange:
- Buy with Card: Purchase USDT directly using a credit or debit card through Binance's streamlined interface.
- P2P Trading: Buy USDT from verified sellers on the P2P market using a variety of local payment methods.
- Deposit from Another Wallet: You can receive USDT by depositing it from an external cryptocurrency wallet into your Binance deposit address.
- Trade for It: Exchange other cryptocurrencies you hold for USDT on the Spot market.
How to Buy USDT on Binance
To buy USDT via the P2P platform:
- Go to the "P2P Trading" section.
- Click "Buy" and select USDT.
- Browse the list of ads from sellers, paying attention to their payment methods, price, and user rating.
- Select a verified merchant, enter the amount you wish to purchase, and click "Buy USDT".
- Follow the instructions to transfer the fiat payment to the seller. Once they confirm receipt, the USDT will be released to your wallet.
How to Get USDT
Beyond buying on exchanges, there are other ways to acquire USDT:
- Earn as Payment: Freelancers and businesses can choose to receive payments for goods and services in USDT.
- Staking and Rewards: Some platforms and decentralised finance (DeFi) protocols offer USDT as rewards for staking other cryptocurrencies or providing liquidity.
- Play-to-Earn Games: Certain blockchain-based games allow players to earn USDT or other crypto assets by achieving in-game objectives.
Frequently Asked Questions
How do I convert USD to USDT on Binance?
The easiest way is to use the "Convert" feature found on the main page of the Binance app or website. Simply select USD (or the fiat in your funding account) as the source currency and USDT as the target, enter the amount, and execute the conversion instantly.
How can I sell my USDT for cash?
The most direct method is through Binance's P2P platform. You can create a sell advertisement specifying that you want to receive cash via bank transfer or another agreed-upon method. Once a buyer pays you, you release the USDT to them.
What is the safest way to trade USDT P2P?
Always trade with users who have a high completion rate and positive reviews. Use the built-in escrow system provided by Binance, which holds the USDT until the buyer confirms they have made the fiat payment. Never release coins before receiving payment.
Where can I exchange USDT for USD?
You can exchange USDT for USD directly on Binance using the Spot market (trading the USDT/USD pair) or through the P2P platform. The converted USD can then be withdrawn to your bank account via supported methods.
Are there fees for withdrawing from Binance?
Yes, Binance charges a network fee for cryptocurrency withdrawals, which is paid to blockchain miners. For fiat withdrawals, fees depend on the specific method (e.g., SWIFT wire transfer) and can vary. Always check the latest fee schedule on the withdrawal page.
What is the daily withdrawal limit on Binance?
Withdrawal limits vary based on your account verification level. Users with fully verified identities enjoy significantly higher limits. You can check your personal withdrawal limits at any time within your account settings and security page.