Sun 28 Feb 2021 ▪ 10 min read ▪ by Zeben R.
Although Tether is a rather special cryptocurrency—in the sense that 1 USDT will always be worth $1—it should still be treated like any other crypto asset. Consequently, it’s worth exploring how to buy and sell Tether.
In this guide, we’ll explain the different options available for buying or selling USDT tokens. As you’ll see, the process is very similar to trading other digital assets, despite Tether’s unique nature.
Where Should I Conduct My Transactions?
(Insert list of platforms)
Regardless of which cryptocurrency you intend to acquire, it’s always advisable to use a trusted platform to buy or sell, ensuring you avoid scams by unscrupulous companies.
In the table above, we’ve included some reliable markets that we’ve tested and evaluated personally for you. Given our experience in the cryptocurrency space, we know which platforms are the best for buying and selling Tether securely.
Of course, our list isn’t exhaustive, as there are hundreds of different exchanges that facilitate USDT trading. However, we strongly recommend avoiding platforms with questionable reputations to prevent falling victim to fraud. If you have any doubts about the reliability of a platform, you can always opt for one of our recommended exchanges to minimize risk.
Available Methods to Buy USDT Tokens
Tether is—despite its occasionally controversial reputation—a popular digital asset with a high market capitalization. As such, there are multiple ways to purchase USDT tokens.
Here are the main methods for buying Tether in 2024.
Buying Tether with a Credit Card
Some platforms allow the purchase of Tether with a credit card, though this isn’t universally available. Exchanges that support direct fiat-to-crypto swaps—the simplest method—typically offer only a limited selection of cryptocurrencies that can be exchanged for euros or dollars.
If a platform doesn’t support direct USDT purchases via credit/debit card, you’ll need an intermediate step. First, acquire a popular digital asset, such as BTC or ETH, and then transfer it to an exchange where you can trade it for USDT.
Surprisingly, despite being the leading stablecoin by market cap, not all platforms accept bank transfers for USDT purchases. Again, you’ll need to first acquire another popular cryptocurrency after depositing fiat, then exchange it for Tether elsewhere.
Alternative Payment Methods to Buy USDT Tokens
Only the most popular cryptocurrencies can be bought directly with fiat payment methods. Therefore, purchasing USDT using Paysafecard, Skrill, PayPal, or even cash can be challenging—though you might find a platform that supports these options.
Buying Tether with Bitcoin or Ethereum
If you’re using a platform that doesn’t allow direct USDT purchases with fiat, you’ll need to buy another high-cap cryptocurrency first.
Bitcoin and Ethereum are the two most suitable options, as they have extensive trading pairs. They’re the easiest cryptocurrencies to acquire, and every exchange listing Tether supports USDT purchases via BTC or ETH.
Why Should I Secure My USDT Tokens in a Wallet?
For any USDT tokens you own, you should transfer them to a secure location. Leaving them on an exchange exposes them to hacking risks. While trading platforms have improved their security, this is a risk you can easily avoid by storing USDT in a dedicated wallet.
To learn how to keep your USDT safe, check out our guide on the best wallets for Tether, where we analyze different storage options so you can choose the one that best fits your needs.
How to Sell Tether?
Since Tether is the most widely used stablecoin, with hundreds of trading pairs across nearly all exchanges, you may want to sell it. The process is similar to buying—just in reverse.
If you’re using a platform that supports both crypto and fiat, converting USDT to a fiat currency is straightforward. Once done, simply withdraw the funds to your bank account.
If your exchange doesn’t support direct USDT-to-fiat sales, you’ll need to first trade USDT for BTC or ETH and then sell those for fiat.
Reasons to Consider Selling Your USDT Tokens
Tether has faced significant criticism since its launch, often due to FUD (Fear, Uncertainty, Doubt). As a result, many have opted to sell their USDT holdings. Other potential reasons include:
- When the crypto market is bullish, it may be better to invest in higher-yield assets like Bitcoin or Ethereum. Holding funds in USDT means missing out on potential gains.
- Negative news about Tether’s reserves. Periodically, rumors arise that Tether lacks sufficient USD reserves to back USDT. So far, these claims remain unproven—but if they were ever validated, selling USDT quickly would be crucial before a price collapse.
- Preferring a more trustworthy stablecoin. Tether isn’t the only stablecoin—others exist (and more will emerge). If you find another stablecoin more reliable, selling USDT (partially or fully) for it makes sense.
- Switching to a local-currency-pegged stablecoin (e.g., EUR-backed) instead of USD-backed USDT.
What Are the Tax Implications of Selling USDT?
In Spain, cryptocurrencies lack a clearly defined legal status, but trading them isn’t illegal. However, converting crypto to fiat (euros) may trigger capital gains taxes. Since regulations vary by country, consult a tax advisor for guidance relevant to your jurisdiction.
👉 Explore secure trading platforms for USDT
Conclusion:
As you can see, buying and selling USDT isn’t overly complicated. However, the process becomes more tedious if your platform doesn’t support direct fiat-to-USDT swaps—though this scenario is increasingly rare.
If your exchange allows direct USDT purchases with fiat, simply choose your preferred deposit method and buy the desired amount. Otherwise, you’ll need to acquire BTC or ETH first and then trade for Tether.
When selling USDT, the logic is similar—just reversed. If direct fiat withdrawals aren’t supported, you’ll need an intermediate crypto trade. Given USDT’s stability (pegged to $1), you might prefer holding it for future crypto investments rather than selling immediately.
For more insights on Tether, check out our related guides covering various aspects of this stablecoin.
FAQs
1. Can I buy USDT directly with PayPal?
Few platforms support direct USDT purchases via PayPal. You may need to buy BTC/ETH first and then exchange for USDT.
2. What is the safest wallet for storing USDT?
Hardware wallets (e.g., Ledger, Trezor) offer the highest security for long-term USDT storage.
3. Why is Tether controversial?
Concerns about its USD reserves and transparency have fueled skepticism, though it remains widely used.
4. Can I earn interest on USDT holdings?
Yes, some platforms offer staking or lending options for USDT, allowing passive income.
5. Is USDT available on decentralized exchanges (DEXs)?
Yes, but liquidity varies. Always check slippage and fees before trading on DEXs.
👉 Discover top-rated crypto exchanges for USDT trading
Zeben R.
Minimalist fiat enthusiast, MtGox survivor, and crypto advocate since 2011. Passionate about leveraging cryptocurrency for financial freedom!