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Before describing how to buy, transfer or withdraw USDT in fiat currency, let’s talk about what it is and why these operations have become highly relevant today.
The high volatility of cryptocurrencies – Bitcoin, Ethereum, Waves, Litecoin, Dogecoin, etc., which is especially evident since the start of the war between Ukraine and Russia makes investors look for ways to save their assets in cryptocurrency.
And one of the most effective and proven ways is to convert Bitcoin and other similar digital currencies into Stablecoins, that is, cryptocurrencies whose value is tied to some fiat currency or to liquid exchange commodities – oil, gold, etc.
And the most popular Stablecoin is Tether, a cryptocurrency token issued by Tether Limited.
The latter claims that its value is 80% secured by U.S. dollar reserves. Tether is denoted by the acronym USDT, the meaning of which is very clear.
How relevant is it to buy USDT
Dramatic world events have shown that Stablecoin is really tightly tied to the dollar, so its value has not changed.
A legitimate question may arise: “Why buy USDT, losing on conversion, when you can directly buy the U.S. dollar”?
There are reasons, and there are several:
1.Since the outbreak of the armed conflict between Ukraine and Russia, the circulation of dollars in these countries has been sharply restricted.
For example, in Russia, it is impossible for an individual to buy dollars in a bank. Or to transfer them from their bank card or with the help of some payment system.
The situation is similar in Ukraine. Dollars are not sold in a bank, and the exchange rate is 4-5 hryvnias higher than the official one.
It is also impossible to transfer dollars. In addition, the National Bank of Ukraine in April at all banned the purchase of cryptocurrencies for hryvnias.
But interest in earning with cryptocurrencies remains very high.
2.The world of digital currencies needs a cryptocurrency that is as reliable as the U.S. dollar is in the world of fiat currencies.
You need a safe haven where you can quickly transfer other cryptocurrencies if you feel a storm is coming.
All of the above problems can be solved with USDT.
How to buy USDT
Several tools can be used to buy USDT:
Cryptocurrency exchangers
The most popular way. There are dozens of online exchangers, which implies high competition, which means the most profitable rates.
In addition, some services monitor the rates of cryptocurrencies in exchangers around the clock and present them in a clear tabular form, ranking, starting with the most profitable. But there are two problems:
- Cryptocurrency rates are not constant, so the information on these services may not correspond to the real state of affairs.
- The exchangers may not have enough of the cryptocurrency of interest, particularly USDT.
- When using an exchanger for the first time you often need to go through a verification procedure.
- If the exchanger does not work in automatic mode, but in manual mode, the exchange operation may be delayed.
Unfortunately, due to restrictions imposed by the National Bank of Ukraine, many banks began to block such operations. Therefore, this option may not work for residents of Ukraine.
Exchange
These services differ from cryptocurrency exchangers in the following ways:
1.They offer a much larger number of cryptocurrencies and fiat currencies for exchange.
2.The exchange of cryptocurrencies takes place in real-time and the transaction itself takes a few seconds or a fraction of a second.
3.The commission for the exchange is less than for the exchangers. You should not take into account the commission for the withdrawal of funds from your crypto wallet on exchange to your bank card. Therefore, the total commission will be more than in exchangers.
Exchanges are very popular with traders who see cryptocurrency not as a way to preserve their assets, but as a tool to make money.
Payment systems
Many payment systems – PayPal, Perfect Money, Payeer, and others work with USDT. With their help, you can deposit your account at the exchange, and pay for a purchase in an online store.
In addition, for example, PayPal and Payeer issue debit cards that can be used to pay in offline stores.
The conversion into the desired currency is automatic. But, unfortunately, purchases in this way in offline stores in Russia, Ukraine, Belarus, Kazakhstan, and other CIS countries are not possible at the moment.
P2P exchange
That is, the exchange between two people. This is the principle of exchange between crypto and fiat currencies on the Binance exchange.
A seller puts up, for example, a certain amount of USDT and sets a price for them. To do this, he transfers these USDT to a temporary Binance crypto wallet.
The buyer transfers the specified amount to the seller’s bank card using the specified details. The seller confirms the transfer, and the exchange sends the USDT to his wallet. This scheme eliminates fraud.
In this case, since the money is transferred to an individual from an individual and the bank does not see what the money is actually transferred for.
P2P exchange is essentially the only reliable option for Ukrainian citizens to buy USDT or other cryptocurrency or to withdraw it to their bank card.
Crypto machines and offline exchange
A cryptomat is a special technical device (terminal) that can be used to buy/sell digital currency or exchange it for fiat currency.
Recently, cryptomats have been frequently used to buy goods from online stores that accept cryptocurrency as payment.
Customer identification in the cryptomat happens by fingerprint, QR-code, or phone number.
Crypto machines are very rare in CIS countries, even in large cities. Another disadvantage is their high commission. For example, when buying USDT for fiat, the commission is 5%.
In Ukraine, the sale/purchase of USDT for fiat is currently prohibited, including through cryptomats.
Alternative ways to withdraw USDT
On the Internet, you can see ads from individuals offering to buy a cryptocurrency for fiat currency.
That is, you withdraw, for example, USDT to the specified purse, and you get money transferred to your bank card.
Or vice versa, you transfer money to the specified bank card, and you get USDT transferred to your cryptocurrency wallet.
There are even telegram bots that automate this process. We advise making such deals only with people you know well. After all, in this case, you are not insured against fraud.
There are also cryptocurrency wallets with an add-on acquisition option. They help to buy USDT but have a higher commission percentage. For example: Trust Wallet, Exodus.
When to withdraw USDT
Above we described how to transfer, withdraw and buy USDT. We also pointed out that USDT is tightly linked to the U.S. dollar, so a lot of volatility of this digital currency is not threatened. But USDT has one weakness.
The fact is that Tether is not a decentralized cryptocurrency. USDT is controlled by a private American company Tether Limited.
And the fact that its currency is 80% backed by the dollar, we know only from the words of this company.
Tether Limited doesn’t allow external audit and nobody knows what the real financial situation of this company is.
Yes, now USDT can be exchanged into any other digital currency or sold for fiat at any time of the day.
Any exchanges and exchangers work with Tether cryptocurrency. But we know how big banks and big companies went bankrupt overnight.
Therefore, it is absolutely possible that USDT will lose all of its value in an instant.
How do you find out about this event? For the average person, you can’t. Therefore, it is necessary to adhere to the golden rule of the investor – do not put your eggs in one basket, that is, do not keep your assets in one currency.
The USDT is a great tool for preserving your assets. But that does not mean that you have to use it only.
There are also stocks, physical gold, and many other options. Make up an investment portfolio, thereby insuring yourself against a large departure into deficit.
