Understanding USDT (Tether)
Tether (USDT) is the first stablecoin ever created. A stablecoin is a cryptocurrency designed to maintain a 1:1 value parity with a specific fiat currency—in this case, the US Dollar. Initially launched in 2014 as Realcoin, USDT has become a cornerstone of crypto trading due to its price stability.
Key Features of USDT:
- Stability: Pegged 1:1 to the USD.
- Liquidity: Widely accepted across exchanges like Binance.
- Transparency: Backed by reserves audited by Tether Limited.
Current USDT Price on Binance
As of the latest data:
- Price: €0.9212324 (USDT/EUR)
- Market Cap: €75.99B EUR
- 24-Hour Trading Volume: €56.68B EUR
USD vs. USDT: Key Differences
| Feature | USD (Fiat) | USDT (Stablecoin) |
|---|---|---|
| Issuer | Central Banks | Tether Limited |
| Blockchain | N/A | Multiple (Omni, ERC-20) |
| Use Case | Traditional Payments | Crypto Trading |
Note: USDT combines "USD" (symbol for the dollar) with "T" (for Tether).
USDT vs. BUSD: Which Is Better?
- USDT: Dominates trading volume but has faced scrutiny over reserve audits.
- BUSD: Issued by Paxos in partnership with Binance, offering regulatory compliance and transparency.
Verdict: BUSD may be preferable for long-term holdings, while USDT excels in liquidity for active trading.
How to Buy/Sell USDT on Binance
Buying USDT:
- Log in to Binance and navigate to Buy Crypto > Credit/Debit Card.
- Select USDT, enter the amount, and complete payment.
Selling USDT (P2P):
- Go to Binance P2P and click Sell USDT.
- Choose a verified buyer, confirm the order, and release USDT upon payment receipt.
Converting Between Stablecoins
To swap BUSD to USDT:
- Use the Convert tool under Trade > Spot.
- Select BUSD as the source and USDT as the target.
Tip: Check for minor price differences to optimize conversions.
FAQ Section
1. How do I withdraw USDT as USD?
- Link your bank account via SWIFT Transfer in the Fiat withdrawal section. Processing times vary by region.
2. Is USDT safer than BUSD?
- Both are reliable, but BUSD’s regulatory backing may offer added security for risk-averse users.
3. Can I earn interest on USDT?
- Yes! Use Binance’s Earn products like Flexible Savings or Locked Staking.
4. Why does USDT’s price fluctuate slightly?
- Minor deviations (€0.99–€1.01) occur due to market demand and exchange liquidity.
5. What’s the daily withdrawal limit for USDT?
- Verified Binance users can withdraw 100 BTC equivalent daily (~$4M).
6. Are there fees for converting USDT to BUSD?
- Binance charges a nominal trading fee (0.1% for spot trades).
Final Tips
- Security: Enable 2FA and whitelist withdrawal addresses.
- Diversify: Hold multiple stablecoins (USDT, BUSD, USDC) to mitigate risks.
- Stay Updated: Follow Binance announcements for new USDT trading pairs.
For advanced strategies, explore margin trading or USDT-based DeFi platforms.