How to Buy Tether (USDT) – Beginner’s Guide

USD Tether (USDT) was among the first stablecoins to launch in 2014. Since its launch, it’s become one of the leading crypto assets, providing a store of value for fiat currency and a gateway to other cryptocurrencies. In this guide, we explain how to buy Tether USDT.

We’ll also explore how the token works, which blockchains support it, and safe ways to store USDT tokens. Let’s start with a brief overview of the key takeaways from this guide.

How to Buy USDT in 4 Easy Steps

Let’s go through everything you need to know about buying USDT in 2025 as well as the best place to invest in USDT today:

• Step 1. Download the Best Wallet app. Visit Best Wallet to find the official QR-code links for the app. These let you download the app from the App Store (iOS) or Play Store (Android).
• Step 2. Set up your new wallet. Sign up with a Google account or Apple ID. Next, set up a PIN or biometric authentication to secure your wallet. The Best Wallet app will automatically generate private keys that allow you to make transactions.
• Step 3. Navigate to Trade. Look for the Trade icon at the bottom of the screen and search for USDT. Select the USDT token for the network you want to use, such as Ethereum or Polygon.
• Step 4. Buy USDT. Choose an investment amount and select a payment method from the drop-down list, such as Google Pay, debit card, PayPal, or ACH. Payment options vary by region. Review the fees and confirm your USDT purchase.

Best Wallet supports more than 60 blockchains and allows you to safely store your crypto assets in a wallet that you control. This saves a step versus buying on a centralized exchange and then withdrawing to a separate wallet.

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How to Buy USDT– Step-by-Step Instructions

Buying USDT is straightforward, and we’ll guide you through it using Best Wallet. Based on our Best Wallet review, you can keep the tokens in your self-custody wallet without needing to withdraw them from an exchange.

First, you’ll need to install the app. Visit Best Wallet to find a QR code that links directly to the App Store or Play Store listing. Best Wallet is a free download.

Here’s a step-by-step guide on how to buy USDT with a credit card. You can also buy USDT with a debit card, PayPal, or other payment methods.

Step 1: Create an Account

To begin, create an account on Best Wallet. This will only take a few minutes because Best Wallet lets you create a wallet using an Apple ID or Google account. Take a few extra seconds to secure your wallet during this step with a PIN or biometric (fingerprint) login.

Step 2. Search for USDT

Look for the trade icon at the bottom of the app. Click the icon and search for USDT. You’ll see several listings, so choose the one for the network you plan to use. For example, if you plan to use the Ethereum network, choose the Ethereum USDT token.

Step 3: Select Purchase Method

Next, select the purchase method that works best for you. Best Wallet offers various payment options, including credit/debit cards, bank transfers, and more. Consider the pros and cons of each preferred payment method:

• Credit/Debit Cards: Fast and convenient, but may incur higher fees.
• Bank Transfers: Lower fees, but may take longer to process.
• Other Methods: Depending on your location, other payment methods like e-wallets or cash deposits might be available.
• Choose the method that suits your needs and preferences. Best Wallet automatically selects the payment method that provides the best value (the most tokens) for your money.

Step 4: Enter the Amount

Enter the USD amount you want to invest. Then, check the current market price and adjust your purchase amount accordingly.

Step 5: Make the Payment

Review your purchase to verify the details and confirm the transaction. Depending on your chosen payment method, you might need to complete additional steps, such as verifying your identity or entering payment credentials.

Step 6: Receive Your USDT

Once your payment is processed, your USDT will be credited to your Best Wallet account. You can then use it for trading, storing, or transferring as needed.

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Crypto Payment Methods Compared

Depending on your location, you may have several payment methods available. Let’s compare how these typically work for crypto purchases, including USDT.

Methods of Buying USDT Compared

If you’re wondering where to buy USDT, you have several options. Let’s compare some common ways to buy USDT.

We learned how to buy Tether using Best Wallet earlier. Other common methods for buying cryptocurrency include exchanges like MEXC or brokerages like eToro. Notably, eToro does not support USDT purchases, although the platform does offer a small selection of other crypto assets. Fees may vary depending on the asset you purchase.

Compare USDT Buying Platforms

For users who value control over their crypto assets, secure transactions, and a user-friendly interface, Best Wallet offers the best choice. Best Wallet also gives you the ability to connect to decentralized apps or explore a curated selection of platforms from within the app.

Crypto exchanges tend to be more complex, and they retain control over your crypto until you withdraw. The limited selection provided by brokerages makes them better suited to casual buyers. For many users, Best Wallet ticks all the boxes.

What is Tether (USDT)?

Tether (USDT) is a stablecoin that maintains a 1:1 value with the US dollar. It’s backed by reserves held by Tether Limited, which include cash, cash equivalents, and short-term treasury bills. This backing ensures that USDT’s value remains stable, making it a reliable store of value and medium of exchange in the cryptocurrency market. Typically, USDT trades within a fraction of a penny relative to USD.

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Tether’s multi-chain support, collateralization with third-party attestations, and real-time issuance/redemption processes all contribute to its widespread adoption. The token, including deployment on more than a dozen blockchains, is often in the top three cryptocurrencies by market capitalization, following Bitcoin and Ethereum.

Let’s explore USDT in more detail, including tokenomics, adoption, and why USDT remains the leading stablecoin choice in a growing market.

Key Features of the Tether Project

• Multi-Chain Availability: USDT operates natively on 14+ blockchains, enabling seamless cross-chain transactions and interoperability. The tokens can be redeemed for cash, so USDT holds its value regardless of the chain.
• Fiat Collateralization: Backed by reserves held in cash, cash equivalents, and short-term treasury bills, managed by Tether Limited.
• Real-Time Issuance/Redemption: After compliance checks, institutions can mint or burn USDT directly through Tether’s platform. Minted tokens circulate on secondary markets, whereas burned tokens reduce the supply.
• Transparency Reports: Quarterly reserve attestations (though not full audits) detail asset composition and holdings. Tether publishes a summary of assets and liabilities as well as detailed quarterly reports.

Why Tether Remains a Top Choice

USDT’s dominance stems from its early-mover advantage and deep integration into crypto infrastructure. Over 85% of Bitcoin trades involve USDT pairs, making it indispensable for liquidity. USDT’s role extends beyond trading: some merchants use USDT for cross-border settlements, while decentralized finance (DeFi) protocols rely on it for stable liquidity pools or in trading pairs with volatile assets. Traders also hold the token in between trades to remove volatility risk.

USDT Supply Tokenomics

• Supply Mechanism: Tether’s circulating supply expands or contracts based on institutional demand, with minting/burning audited via public blockchain explorers.
• Stability: Algorithmic adjustments are unnecessary—the 1:1 peg is maintained through reserve management and arbitrage incentives. For example, if USDT is undervalued on a decentralized exchange (DEX), arbitrage bots will trade into the pair, returning USDT to its USD peg. USDT’s reserve structure, comprised of real-world assets, prevents algorithmic mishaps like the UST collapse that occurred in 2022.
• Revenue Model: Tether earns interest income from reserve assets, which include treasuries and interest-bearing loans, as well as capital appreciation from assets like Bitcoin.

Community & Adoption

USDT’s user base includes retail traders, institutions, and unbanked populations, who use it as a USD equivalent. Despite recurring scrutiny over reserve transparency, it remains the preferred stablecoin for many leading exchanges, edging out competing stablecoins like USDC. Community sentiment hinges on its utility as a stable value asset. However, some within the crypto community advocate for alternatives with stricter auditing.

Tether’s evolution reflects its adaptability—from Bitcoin-based tokens to embracing Ethereum, Solana, and emerging Layer 2 networks. While controversies persist, its entrenchment in crypto ecosystems ensures that USDT remains a cornerstone of digital asset markets. USDT’s popularity led to the addition of several other stablecoins, including a token pegged to the Euro (EURt) and a token that tracks gold’s price with physical gold backing (XAUt).

Why Buy USDT and Is It Worth It?

We discussed how to invest in USDT and where to buy Tether, but should you? As a stablecoin, USDT is designed to maintain a 1:1 peg with the US dollar, meaning its value will not increase over time.

Instead, its value lies in its stability and utility, making it an attractive option for those seeking to hedge against market volatility, facilitate cross-border transactions, or participate in decentralized finance applications. Let’s examine each of these in more detail.

Hedging Against Market Volatility

USDT provides a safe-haven asset for investors to park their funds during times of market uncertainty or in between trades, reducing exposure to price fluctuations. By holding USDT, investors can protect their portfolios from sudden drops in cryptocurrency prices.

Cross-Border Transactions

USDT enables fast and cheap cross-border transactions, making it ideal for international trade and commerce. With USDT, businesses and individuals can transfer value across borders without the need for traditional banking systems. Low-cost blockchain networks like Solana or Arbitrum allow anyone to send USDT to another wallet address for pennies, often less.

Decentralized Finance (DeFi) Applications

USDT is widely used in DeFi protocols, providing liquidity and stability to various applications such as lending platforms, stablecoin swaps, and yield farming protocols. Its stability and wide adoption make it an essential component of the DeFi ecosystem.

Risks and Considerations

While USDT offers several benefits, it’s essential to consider the risks associated with buying and holding this stablecoin.

• Regulatory Risks: Changes in regulations or laws can impact the stability and availability of USDT. The US Securities and Exchange Commission (SEC) recently approved a competing stablecoin that pays a yield from its holdings. USDT does not have similar regulatory approval.
• Counterparty Risks: Investors are exposed to the credit risk of Tether Limited, the issuer of USDT. Although Tether’s third-party attestations provide an allowance for expected credit losses, potential losses may be larger.
• Depegging Risk: There is a risk that USDT may lose its peg to the US dollar, which has happened temporarily in the past due to market volatility or other factors. This risk could affect leverage plays if the USDT collateral falls in value, potentially causing liquidations even if the price later recovers.

USDT’s stability, liquidity, and widespread adoption make it a valuable tool for crypto ecosystems. However, while the token generally maintains its peg to the US dollar, holding it carries additional risks compared to holding cash.

How to Store the USDT that you buy?

After you buy USDT, you should consider a secure storage solution to protect your assets. If you purchased USDT through Best Wallet, your tokens are already in a self-custody wallet that you control.

There are two primary self-custody options: hot wallets and cold wallets.

• Hot wallets are software-based programs that store your private keys, which allow you to control your USDT. Mobile wallet apps and browser extension wallets store your private keys on a device connected to the internet. This online connection allows for quick and easy access to your funds, making frequent transactions convenient.
• Cold wallets, on the other hand, are hardware devices that store your private keys offline. They often resemble a thumb drive and connect via USB or Bluetooth, although some models offer larger screens. This physical isolation provides an additional layer of security against hacking attempts. Cold wallets generate and store your private keys within the device itself. You connect the hardware device when you need to authorize a transaction.

Generally speaking, hot wallets offer more convenience, whereas cold wallets provide better security because the private keys are kept safe from online threats. One common strategy is to use cold storage wallets to hold larger amounts of digital assets and keep smaller balances on hot wallets for convenient access.

If you purchase USDT on a centralized crypto exchange, the exchange will store your assets in a custodial wallet. However, this means the exchange controls the wallet’s private keys, which can put your USDT at risk if the exchange is compromised or becomes insolvent. Many cryptocurrency investors prefer to store their digital assets in a self-custody wallet, where they have full control over their funds.

Best USDT Wallet

Using a self-custody wallet is often the best approach for storing your USDT tokens. This strategy allows you to maintain control over your private keys and tokens, reducing the risk of hacks or asset freezes associated with custodial solutions like crypto exchanges.

USDT Wallet Considerations

• Multi-chain support: Ensure the wallet supports multiple blockchains, including popular networks that support the USDT token, such as Ethereum and Solana.
• Security features: Look for robust security measures, such as biometric security, PIN protection, and encryption, to protect your assets.
• User interface: Complex interfaces invite mistakes. Choose a user-friendly interface that simplifies crypto management, making it easy to send, receive, and store USDT.
• Additional features: To enhance your overall crypto experience, consider features like integrated exchanges, staking capabilities, and community support.

For example, Best Wallet gives you access to over 60 blockchains, including multiple networks that support the USDT token. This popular app has become known for its intuitive interface and features like seamless token swaps across multiple chains. Best Wallet does all this without compromising your privacy. The app provides complete secure and anonymous non-custodial crypto storage without ID or KYC verification.

By comparison, popular wallet options like MetaMask and Coinbase Wallet come with some tradeoffs. MetaMask only supports Ethereum Virtual Machine (EVM) networks, and Coinbase Wallet only supports a handful of blockchain networks. Both can be tricky to navigate if you’re a new user.

Ultimately, which wallet is best suited for your needs depends on how you use crypto and your risk exposure. For small balances and frequent use, an easy-to-use app with cross-chain support, such as Best Wallet, could be the right choice. If you have more to protect, consider using a hardware wallet to protect larger balances.

Regardless of which type of wallet you use, you’re the head of cyber security. Remember to back up your private keys, store them safely offline, and never share them with anyone. Whoever has the private keys controls the corresponding crypto assets on the blockchain.

What to do with the USDT you buy?

We learned how to buy USDT and discussed where to buy USDT, but then what? Well, you have several options. You can use USDT as a stable store of value. Many traders park their portfolio value in USDT between trades. You can also put your USDT to work to earn a yield.

Let’s explore some potential uses for USDT.

Hold USDT as a Store of Value

You can hold USDT to reduce your exposure to market volatility. Since USDT maintains a stable value relative to the US dollar, it serves as a low-risk asset that protects your portfolio from sudden price fluctuations.

Use USDT for Transactions

USDT is a fast and cheap way to send and receive payments globally. Many merchants, crypto exchanges, and cryptocurrency platforms accept USDT, making it ideal for cross-border transactions or even online shopping with merchants that accept crypto.

Participate in DeFi Applications

You can put your crypto to work in decentralized finance protocols using your USDT. For example, the battle-tested Aave crypto lending platform lets you earn a yield by depositing USDT into a lending pool. Stablecoins typically pay some of the highest yields. You can also borrow against your deposit to use your USDT in trades or other DeFi protocols.

Trade USDT for Other Cryptocurrencies

You can trade your USDT for other cryptocurrencies on exchanges or through decentralized exchange (DEX) protocols. Invest in the hottest new crypto sectors or trade your USDT for time-tested assets like Bitcoin or Ethereum. USDT enjoys widespread support in trading pairs, allowing you to trade USDT for countless digital assets. Apps like Best Wallet let you do all this in one place.

Explore Other Use Cases

You can also use USDT to pay for goods and services online or offline, collateralize loans or margin trading, or participate in gaming and prediction markets. As the cryptocurrency ecosystem evolves, new use cases for USDT will likely emerge.

As a well-established crypto asset, USDT has become ubiquitous and can open doors nearly everywhere in the crypto world. New use cases continue to emerge, including real-world assets (RWAs), such as tokenized treasuries or even real estate. As a well-recognized USD equivalent, USDT can be used to pay for nearly any blockchain asset or service.

Buy USDT Verdict – A Promising Investment?

Investing in USDT might seem like trading dollars for dollar tokens, and you are. However, the USDT token opens a wide universe of possibilities and protects your capital as you plan your next move. Whether you want to trade or leverage DeFi opportunities to earn a yield, USDT can serve as a building block toward that goal. The token’s uses are vast and varied, and Tether’s transparency has greatly improved, giving investors more confidence in the token.

However, it’s still crucial to approach USDT investments with caution, considering potential risks such as regulatory changes, counterparty risks, and de-pegging. As with all crypto investments, it’s essential to stay informed and never invest more than you can afford to lose.

FAQs

References

• Tether Transparency (tether.to)
• The Fall of Terra: A Timeline of the Meteoric Rise and Crash of UST and LUNA (coindesk.com)
• SEC Approves First Interest-Bearing Stablecoin in U.S., Offering 3.85% Yield to Verified Holders (finance.yahoo.com)
• Tether Holdings (ctfassets.net)