Before we take a look at how we can get our hands on some USDT, let's first take a look at what exactly is this Tether token and why is it so popular. USDT was launched in 2014 by a company called Tether Limited, which is owned by iFinex, which also owns the famous crypto exchange Bitfinex. The precursor to USDT (Tether) was named “Realcoin” and was put on the market by 3 co-founders (Brock Pierce, Reeve Collins, and Craig Sellars). During its first release, USDT tokens were minted on Bitcoin blockchain, but ever since then this token has grown and was incorporated into many different blockchains. Nowadays, USDT has been minted on 10 different blockchains and protocols, giving people the ability to use USDT across different platforms and blockchains. 

"Every smart person that I admire in the world, and those I semi-fear, is focused on this concept of crypto for a reason. They understand that this is the driving force of the fourth industrial revolution: steam engine, electricity, then the microchip - blockchain and crypto is the fourth." - Brock Pierce

USDT is a stablecoin, meaning that it is pegged to US Dollar and always retains the $1 valuation, with slight fluctuations that equal to a hundredth of a cent. Tether is a stablecoin that is backed by real-world assets, and according to iFinex, they maintain $1 USD for each USDT token minted. This gives USDT the ability to maintain its pegged value. Currently, there are 65.9 billion USDT tokens in circulation, giving it a $65.9 billion market capitalization and making it the third-largest cryptocurrency on the market. Nowadays, USDT is considered the main cryptocurrency when it comes to payments made in crypto and the reason behind this is that, unlike traditional cryptocurrencies that are highly volatile, USDT always maintains its value, making it easy to conduct business using this token. 

Being the third largest cryptocurrency and always maintaining its $1 value makes USDT a really useful and versatile token. What this means is that USDT has many different usages and when purchasing USDT, you should first consider what are you going to use it for, and then select the crypto exchange based on that. There are exchanges that are great for trading using USDT, there are exchanges that are good for low fees, there are exchanges that put huge attention on security and many more. Because of this, we will be taking a look at what steps traders should take in order to purchase USDT in the best possible place according to their needs.

Select which exchange you will be buying USDT on

As we mentioned above, it is important to correctly select which exchange you will be purchasing USDT on. USDT is a common quote currency on most exchanges, and a big number of cryptocurrencies can be traded with USDT, so if you want to use this feature of USDT for trading, it will be best to select an exchange with good trading tools. If you wish to use USDT for purchasing goods and services, you might look for exchanges that offer low deposit and transaction fees. Like this, there are many different things that traders should consider, and only after that make a final decision.

Open an exchange account

Once we find the exchange that suits our needs the best, we need to open our personal account on that exchange. Simply opening a new account should not take much time, as most exchanges ask for just an email address and phone number. But just registering an account might not be enough on some exchanges and traders might need to pass KYC verification, where they need to provide a photo of their ID or other similar government-issued documents, along with some personal information. Once exchanges confirm this information, the account will be granted Verified status and will be given access to most exchange features.

Deposit funds and purchase USDT

After gaining verified status on our account, we then can simply deposit funds and purchase USDT. The deposit options will depend on the exchange, but most of them accept payment methods such as Credit/Debit cards, Bank transfers, and some other third-party payment services such as PayPal. Traders also have the option to deposit other cryptocurrencies, if they own some on another exchange or personal wallet, and then convert them to USDT.

Get a personal wallet

Getting a personal wallet is not mandatory and traders can simply purchase and use USDT without owning any personal wallets, but our advice would be to still get one. Most exchange wallets are custodial, meaning that exchanges are the ones in control of them while having a private wallet guarantees that only you are in control of your funds. Therefore, if you are not purchasing USDT in order to actively trade with it, moving these tokens into a private wallet will be the safest option.

Now that we know the steps we need to take for purchasing USDT, let’s take a look at different exchanges and reasons as to why it is best to purchase USDT on these exchanges.

Binance - Best exchange for trading with USDT

If you want to get into crypto trading, avoiding USDT will be a hard challenge as most tokens have trading pairs with USDT. So, if you are one of these traders, our suggestion would be to purchase USDT on Binance, as it is the world's largest crypto exchange and has one of the best trading tools. Binance on average has $10 billion daily trading volumes and the most traded pair is BTC/USDT with around $3.5 billion daily trading volume in November 2022. Binance offers a lot of trading tools to its users. These tools are Spot/Futures/Margin trading, Strategy Trading, OTC desk, Crypto Staking, and many more. This makes Binance a feature-rich exchange when it comes to trading, and everyone who wishes to purchase USDT for trading purposes must consider choosing Binance. Below we will go over how you can purchase USDT on Binance.

Open Binance account

The first step is to open your personal Binance account. For this, Binance will ask you to provide either your email address or phone number and to come up with a password that fits their password requirements. Once this is done, Binance will send you a confirmation code that can be used to complete the registration on the exchange.

KYC Verification

Since Binance is a regulated exchange, it means that it can not provide its services to users who don’t verify their identity. Because of this, once you register your account, you will need to pass a verification process in order to gain access to most Binance features. For this verification process, Binance will try to gain some basic information about you such as your country of residence, residential address, and other similar information. After this, Binance will ask you to provide a photo of one of the following ID/Passport/Driving Licenses, and once Binance confirms the information you will be granted verified status. But know that Binance made verification a bit complicated and there is a chance that you will need to download a Binance app on your phone to pass verification.

Purchase USDT

With Verified status granted, you then will be able to get your hands on USDT. You can simply purchase USDT using a credit/debit card or bank transfer. There is also an option to deposit your funds on Cash Balance and use fiat currency to then purchase USDT from the market. Binance also has P2P trading where you can purchase USDT from other traders. This is a great way to avoid fees, and you even might find someone who is selling 1 USDT for less than $1. But keep in mind that P2P trading comes with some levels of risk and beginner traders are advised to avoid using it or approach it with high caution.

OKX - Best exchange to purchase USDT for low fees

If you are interested in USDT as a cryptocurrency that can purchase different goods and services and don’t plan on trading with it, using OKX exchange is probably the best option. OKX is currently inside the top 5 crypto exchanges based on trading volume, despite the fact that it is an unregulated exchange. The reason as to why this is the best exchange to purchase USDT is because of the low fees. When purchasing USDT on OKX, you are not charged any extra fees and the only possible fees that you have to pay are fees charged by payment providers, which are unavoidable. OKX also has no withdrawal fees on USDT meaning that if you plan on using USDT to purchase different goods and services this is the best way to avoid unnecessary fees. Below we will go over how you can purchase USDT on OKX.

Open an account

Just like any crypto exchange, the first step when joining OKX is to open your personal account. For this you can either use your email address or phone number. Then OKX will ask you to come up with a strong password that meets their requirements and once you confirm registration by the link sent to you, your account will be open and ready.

Purchase USDT

As you can see, we mentioned that your account will be ready, meaning that you don’t need to pass the verification process and purchase USDT straight after opening an account. Since OKX is an unregulated exchange, they are not required to ask users for KYC verification, meaning that you can simply create an account and buy USDT. But know that there will be limits on how much you can buy and withdraw and to remove these limits, then you will be required to pass KYC verification.

So, when your account will be open, simply go to the Buy Crypto tab at the top menu and look for USDT. Once you select USDT, the exchange will give you payment methods that are available for you, and you simply need to choose whichever one fits you the best. Once the payment goes through, USDT should appear in your wallet shortly after.

Coinbase - The most secure exchange to purchase USDT

If you are someone who prioritizes security above everything else, then Coinbase is probably the best choice you can make when purchasing USDT. Coinbase is a heavily regulated exchange that holds regulatory licenses from countries such as the USA, UK, Germany, and Australia. Coinbase also holds numerous insurance policies that are in place to protect users' funds from theft, and US citizens also benefit from an additional FDIC insurance policy that covers $250,000 of damages. On top of that Coinbase stores most of the users' assets on cold wallets to ensure that in case the exchange gets hacked, hackers will not have access to your funds. Coinbase also has its own non-custodial wallet that users can use to further protect their funds. Everything this makes Coinbase one of the safest exchanges to purchase your USDT, but how can we do it exactly?

Register on Coinbase

When creating your Coinbase account, Coinbase will ask for your first and last name, and email address and will ask you to come up with a strong password. Once you enter everything, Coinbase will send you a confirmation link to your email address which you can then use to complete registration. Once this is done, the account will be open, and you can move to the next step.

KYC Verification

Since Coinbase is so heavily regulated, it should not be surprising that users need to pass KYC verification before gaining access to Coinbase features. This verification process is simple and similar to most other exchanges. Here, you will be asked to provide photo of your government-issued ID/Passport/Driving License and also upload a photo of yourself. You will also need to provide some personal information about yourself and then wait for verification to complete. This process does not take more than 24 hours, and your account should be ready within one day.

Purchase USDT

Once you have gained verified status, you can navigate to the Buy Crypto section at the top menu. There you will be given all of the available payment options, and you simply need to select the one which suits you the most. Then simply complete the transaction and funds should appear on your balance shortly after.

If you are investing in USDT with the goal of holding this token as a means of storing your money instead of depositing it in your bank account then keeping them on the exchange might not be the best option. If you wish to also earn interest on the token, then storing it on the exchange or other similar platform that gives you interest on your tokens can also be an option. Below we will present you with good possible options for both scenarios.

Tether Wallet - Mobile crypto wallet built specifically for storing USDT

What would be a better option for storing USDT than the wallet built specifically for storing that token? It is an official USDT wallet developed by the Tether team, who made this wallet as easy to use as possible, meaning that beginners can easily transfer their USDT on this wallet and manage it without any complications. It has high-security features, such as multi-factor authentication and strong encryption. What's even better is that users can easily swap their USDT for other cryptocurrencies straight in the wallet and avoid the need for a crypto exchange.

Ledger - Overall the best wallet for storing USDT

Ledger is a cryptocurrency wallet company that produces high-quality hardware wallets. If you wish to store your tokens as safely as possible, using a wallet such as Ledger Nano S might be the best option available. What makes Ledger stand out from the rest is that while storing your tokens in the wallet, you can also lend them out and earn relatively good interest rates on them. All in all, when it comes to security and utility, this is the best wallet to use if we wish to keep our USDT in a safe space.