How and Where to Buy Tether (USDT) in 2024

Since the rise of blockchain technology, people have sought to transition from fiat to cryptocurrencies. However, the volatile nature of cryptos has been a chink in the armor of this development. This remained so until some cryptocurrencies were designed to mirror fiat currencies with stable value and functionality.

These tokens are called stablecoins, and Tether is undeniably the most popular. With the ticker symbol USDT, Tether mirrors the value of the US Dollar.  This means its value is pegged to the Greenback. Over ten years in the market, USDT has expanded its use cases in several industries. Its primary function is to serve as a hedge against crypto volatility.

This guide will show how and where to buy USDT from a centralized exchange. We will also explain the benefits of holding Tether in your portfolio.

How to Buy USDT Step-by-Step:

Here is a simple five-step guide on how to buy Tether. You can find a more detailed guide further down on the page.

1. Choose a cryptocurrency exchange that supports Tether. 
2. Create and verify an account on the platform.
3. Fund your account using any of the payment options available. 
4. Proceed to fill out the order form and choose your currency paired with USDT.
5. Select the desired amount of USDT you want to buy and confirm your transaction. 

Where to Buy Tether in 2024: Our Top Exchanges

The first step to buying USDT in 2024 is to choose a reputable crypto exchange that supports your desired payment method and is available in your country.

Here is a look at our top cryptocurrency exchanges to consider.

1. Coinbase

Coinbase is a prominent cryptocurrency exchange platform based in the United States. Established in 2012, the platform has risen to veteran status in the crypto space. Recent data shows over 110 million Coinbase users in 100+ countries. 

Crypto enthusiasts value the platform’s user-friendly nature. This allows them to easily sell, buy, and manage digital assets. Moreover, it is suitable for any trading strategy, whether beginner or advanced. 

The platform’s interface helps to simplify transactions while top-notch security measures protect user assets. Coinbase supports hundreds of assets, including Tether (USDT). 

2. Binance

Binance is arguably the most popular crypto exchange. It offers a wide selection of cryptocurrencies for both beginners and experienced traders. The exchange was created in 2017 by Changpeng Zhao and has since soared to the top.

As a leading crypto trading platform, it offers advanced tools and a user-friendly experience. One of Binance’s key features is its robust ecosystem. Users can participate in staking and futures trading. They can also benefit from educational resources.

Only the top tokens make it to Binance. Think of it as the pinnacle of digital assets. Currently, there are 387 coins (USDT inclusive) and 1288 trading pairs.

3. KuCoin

KuCoin is a global cryptocurrency exchange operating out of Seychelles. The platform has spent over 7 years in the industry, becoming a leading service provider to crypto traders. Services offered by the exchange include direct trading, P2P features, and OTC.

At the moment, there are 700+ tokens listed on KuCoin. This covers all types of tokens, from BTC to meme coins and stablecoins. You can purchase these coins in various ways, such as spot and futures trading. 

KuCoin also offers staking and lending pools. Almost 3 million users have access to top-notch features to manage their crypto investments.

A Closer Look at How to Buy Tether from an Exchange

In the following section, we will provide a more comprehensive overview of how to buy USDT from a crypto exchange.

Step 1: Create an account

You need an account to purchase USDT at a crypto exchange (if you want to buy USDT anonymously, check out our recommended no-KYC exchanges). The best-centralized exchanges will provide you with a native wallet after signing up, which means that you only need to create one account.

Sign up on an exchange that best suits your trading needs. Registration is primarily straightforward and can be completed within five minutes. However, verification could take 1-3 working days.

Creating an account requires personal information such as;

• Full name
• Email address 
• Phone number 
• Jurisdiction and house address.

The verification process validates the information you provided during registration. This will require a means of identity such as;

• National identity card
• Driver’s license
• International passport
• Utility bills 

The most user-friendly exchanges to sign up for include Coinbase and Binance.

Step 2: Fund your account

To be able to buy crypto, you will need to fund your account by connecting a payment method. Most exchanges accept bank transfers, debit cards, and eWallets. You can also fund your account by sending crypto from a third-party wallet (if you would like to buy USDT with crypto).

Once you have chosen your preferred option, input the amount that you would like to fund your account with. Confirm the transaction and wait for it to be processed. Once it’s done, check that your funds have been added to your account.

Step 3: Search for USDT

TA cryptocurrency exchange functions as a marketplace and features hundreds of tokens and currency pairs. Therefore, to purchase Tether, you have to search for it.

Navigate to the explore feature of the website and search for ‘USDT’ or Tether.

Step 4: Fill out the order form

Once you have found Tether, click ‘buy’ to start the ordering process.

Fill out the form on your screen to make your USDT purchase. This will typically include the amount of USDT you want to buy and the equivalent value of the initial currency. Provide the required information on the form and submit it. The USDT tokens should appear in your account after a few minutes.

Note: Buying USDT on specific platforms incurs fees. Read through their trading terms before purchasing Tether or any other token.

Can You Buy Tether with PayPal?

Currently, certain exchange platforms support the use of PayPal as a means of payment. You can buy Tether using your PayPal account on Binance, Coinbase, Crypto.com and other cryptocurrency exchanges.

For more information, read our guide on how to buy crypto with PayPal.

PayPal stands as a fast and secure way for users to fund their accounts and make their purchases. 

To use PayPal as your payment method for buying Tether;

• Create an account on an exchange platform that accepts Paypal 
• Add all the necessary details to verify your account. 
• Go to the trading section and select Tether (USDT)
• Choose PayPal as your preferred payment option
• Fill out the desired amount and confirm the transaction.

The convenience of using PayPal as a payment method comes with fewer charges than other methods that may incur higher transaction fees.

Can You Buy Tether with a Credit Card?

Credit cards are popular payment options across crypto exchanges. Under accepted payment methods, you will likely find either Visa, Mastercard, or Maestro. Using a card to buy crypto is ideal for traders aiming for quick purchases and want to avoid the lengthy bank transfer processes.

However, you are still required to fill in your card details. There are also often higher costs that come with credit card payments.

To buy Tether using your credit card; 

• Choose a cryptocurrency exchange platform that supports this payment method.
• Start by creating an account. Provide personal information and means of identity for verification. 
• Once verified, fund your account by using a credit card. 
• Then, navigate to the crypto trading section. Specify the amount you want to purchase and confirm the transaction. 

Using a credit card as a means of payment usually incurs higher fees than other payment methods. This is due to the card processing fee. Some platforms may also have daily purchase limits for credit card use.

Fees to Be Aware of When Buying USDT

When buying cryptocurrencies, it is important to be aware of the charges and costs that you may incur. Here are some of the fees that may be attached to USDT transactions: 

• Deposit fees: The first fee that buyers may encounter is the deposit fee. Depending on the platform where the transaction takes place, depositing funds into your wallet via fiat currency or cryptocurrency usually incurs a charge. For instance, bank transfers and card transactions usually incur processing fees, while some cryptocurrencies require network fees. Always check the deposit fee structure of the platform to ascertain. 

• Trading fees: These fees are incurred when buyers exchange fiat currencies or other cryptocurrencies for USDT. Trading fees are usually a small fraction of the transaction value and can vary from platform to platform. KuCoin, for instance, charges a standard fee of 0.1% per trade but can be reduced by discounts.

• Withdrawal fees: These are charged upon transfer of USDT from your wallet on the exchange platform to an external wallet. The cost of these fees varies across platforms and depends on the blockchain’s network peculiarities. 

• Hidden costs: In addition to the fees that are explicitly stated and defined, there are also some hidden charges, such as the currency conversion rate, if you are using a different fiat currency. Some platforms also have a minimum limit, which affects those who want to make smaller purchases.

Is Tether a Good Investment in 2024?

The main reason that crypto investors buy Tether is to hold an asset that can be used to easily purchase other cryptos. The value of the coin is pegged to the value of the US dollar, which means that it doesn’t provide the same growth potential as other cryptos.

Nevertheless, here are a few reasons why some investors might add USDT to their portfolio.

Growing Global Adoption 

The adoption of Tether is rapidly on the rise. This is especially true in markets with a constraint on traditional financial services. Tether is stable and has become a crucial tool for financial inclusion. With a user base of over 400 million people worldwide and significant growth in wallets and addresses, Tether plays a huge role in serving as a financial bridge. 

Financial Stability and Reserves

Tether has a robust and solid financial foundation, which gives it its reputation as a reliable investment. As reported by Cryptoglobe, as of Q3 2024, Tether reported $2.4 billion in profits. Gains from gold holdings and US treasury bonds drove this. The company holds $102.5 billion in US treasuries and ranks globally as the 18th largest holder. It surpasses countries like Germany and Australia. Tether also has $6 billion in excess reserves, ensuring stability and liquidity for the token holders.

Strategic Innovation and Diversification

Tether’s diversification beyond just stablecoin reserves adds long-term value to the coin. The company has a diversified investment portfolio, investing in Bitcoin, gold, and even innovative projects such as artificial intelligence, telecommunications, and biotech. This ensures the company’s financial resilience and opportunities to capitalize on new technological advancements. 

Potential Risks of Buying USDT in 2024

Tether has become one of the pivotal forces in the cryptocurrency ecosystem as it offers stability in a volatile market. This, however, does not come without risks for investors. These risks are shaped mainly by regulatory, market, and operational challenges. Two of these risks include:

Reserve and Banking Risks

The type of operational model that Tether uses heavily depends on the financial health of its banking partners. Some regulatory requirements under MiCA, such as maintaining substantial cash reserves in European banks, could introduce some risk. For instance, if a bank holding these reserves collapses, Tether may face significant liquidity issues, undermining its dollar peg and market credibility. Similar incidents with other stablecoins have occurred during the Silicon Valley Bank crisis. 

Market Competition and Shifting Dynamics

The growing competition from newer and more compliant stablecoins poses a significant risk to Tether. These alternative coins are designed to align with evolving regulations seamlessly, and this can potentially draw retail and institutional users away from USDT. That’s not all. The global push for digital currencies owned by the central bank could further suffocate the demand for private stablecoins like Tether in favor of options backed by the state.

Final Thoughts

Tether (USDT) is a fast-growing cryptocurrency. Its value pegged at the dollar’s value is one of the most brilliant frameworks ever adopted by a digital currency. 

Tether is available on most exchange platforms and can be bought using several methods. This includes bank transfers, credit or debit cards, and e-wallets like PayPal. That said, USDT is also one of the best investment options as it is pegged to the US dollar and hedges against crypto market volatility. In addition, its growing global adoption could make it an excellent fit for your portfolio. 

However, it’s best to research the cryptocurrency in which to invest. Although it is a stablecoin, cryptocurrency investment still bears risks. Tether is liable to the market and regulatory dynamics, which can significantly impact its value.

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