How to Buy USDT Directly from Tether: Is It Worth It?

Stablecoins like USDT play a critical role in the crypto economy, bridging the recognised value of the US dollar with the broader crypto market. 

USDT is pegged to the value of the US dollar, meaning it aims to maintain a price of approximately $1.00. It provides a semblance of stability in the wild west that is the crypto world, where fluctuations happen wildly and on a daily basis.

That said, there are several different ways to purchase USDT, each catering to different types of users and needs. People can buy it directly through exchanges like Binance or Coinbase—and this is the overwhelmingly popular option.

However, another approach is to buy USDT directly from the source, which is the Tether platform itself.

If you’re considering the latter option, then you’re in the right place. This article will dive into how you can buy USDT directly from Tether and determine whether that approach is optimal for your circumstance or not.

Let’s jump right into it.

What is Tether?

Tether, often abbreviated as USDT, is a type of digital currency designed to match the value of the US dollar. This digital token acts as a fiat substitute in the crypto world, enabling users to move a stable store of funds without converting to traditional currency.

Tether (USDT) is considered to be one of the two most prominent stablecoin cryptocurrencies in the ecosystem, with USDC falling shortly behind. It has a market capitalisation of $144 billion—the third highest behind Bitcoin and Ethereum—with daily trade volumes easily reaching over $100 million.

Tether is often used by users to buy other cryptocurrencies and move money across platforms efficiently. It’s issued and managed by Tether Ltd., a company that claims to mint new tokens and back each one with equivalent reserves in cash or equivalent assets. 

This system, which can be assessed through regularly published attestations by the company, ensures that each USDT can be redeemed for $1. In essence, Tether Ltd. plays an essential role in maintaining the supply of the world’s most used stablecoin while also maintaining transparency efforts to align with evolving regulatory expectations.

Furthermore, any user, regardless of their geographical location, can purchase Tether. For enthusiasts based in Singapore, crypto exchanges like Independent Reserve are a great option

How to Buy USDT Directly from Tether

If you want to acquire Tether (USDT), you can do it on Tether’s official website. That said, you must follow a couple of steps before you can get USDT.

Here’s a step-by-step guide on acquiring USDT directly from Tether:

1. Create a Tether.io account. Visit Tether.to and sign up for an individual or corporate account. Verify the account using your email provider of choice.
2. Complete the KYC/AML process. Submit relevant legal documents, such as a government ID, proof of address, entity incorporation documents, and bank account details. Tether will review and approve your account if it abides by compliance protocols.
3. Sign in and click Acquire. At the bottom left of the screen in the “Transactions” tab, you have a choice to click a button signalling to either redeem or acquire USDT. Click Acquire.
4. Initiate transport protocol. Fill in the receiving wallet address, the amount you plan to wire, and the associated bank from which the funds are sent. Note that the transfer will be charged a 0.1% fee on the receiving amount. Then click next.
5. Provide travel rule information. Select the type of destination wallet and the beneficiary of the withdrawal protocol, then click Next.
6. Confirm the transaction. Once you have reviewed and cleared all details, confirm the transaction. It will then be passed on to the Tether team. Once approved, you will be credited the USDT in your blockchain wallet and emailed an email receipt.

You can buy as many USDT as you want, provided that you’re in good standing with Tether’s platform. Be sure to comply with their ongoing KYC and regulatory checks to ensure that you won’t encounter any future problems buying USDT directly from them.

Who Should Directly Purchase Tether?

While buying crypto straight from the source sounds optimal when viewed intuitively, it’s actually not recommended in most cases. 

Beginners, especially, should not consider buying Tether from the official website. The reason for this is that the minimum acquisition amount of Tether is 100,000 USD, or its equivalent in other currencies. Certainly not an amount people should be depositing to “test the waters”.

That said, there is a certain classification of individuals that largely benefit from buying USDT directly from Tether. These stakeholders are established and large enough to meet the minimum acquisition requirement for Tether tokens.

Let’s look right at the profile of these qualified individuals or entities.

• Institutional investors: Big financial firms like hedge funds, investment companies, and crypto businesses deal in large volumes of money. Buying directly from Tether gives them access to freshly minted USDT with verifiable issuance receipts. It also reduces cuts taken from third-party exchanges, which can save a significant amount of money at scale.
• OTC traders: Individual traders and brokers who want to conduct large, private transactions over the counter may prefer directly purchasing Tether from the supplier to ensure reliability in acquiring a large volume of the cryptocurrency in an untampered form.
• Corporate treasury management: Corporations that hold crypto may prefer direct issuance from Tether to ensure alignment with internal policies.
• Regulated entities: Fintech firms and licensed exchanges may be required to source their crypto from Tether directly for record-keeping and compliance purposes. Direct engagement with Tether reduces the intermediary list and creates clearer audit trails.

In essence, buyers who acquire Tether directly benefit from ensuring compliance and trustworthiness of the source, which is essential for large-volume transactions.

Should You Buy Direct or Use an Exchange?

As previously mentioned, interested users can buy USDT from other sources besides Tether itself. This third-party pathway is preferred for users who seek to exchange an amount lower than $100,000 USD.

If you’re a retail investor or a casual trader, you can buy through regulated crypto exchange platforms. These platforms don’t just allow users to sell or buy USDT, they also have an easy-to-use, all-in-one system that allows you to track live trends and trade the most popular coins in the crypto space.

Some of the most notable crypto exchange platforms include Binance, Coinbase, and Kraken. That said, depending on where you’re from, there are likely several licensed crypto exchange platforms that you can select from. Be sure to review their licenses and ensure that they’re compliant with local laws.

Best of luck with your trading journey!