Usdt Investment Guide For Indians: Getting Started

Tether (USDT) is a stablecoin, a type of cryptocurrency that aims to maintain a stable price at all times. Unlike other cryptocurrencies such as Bitcoin and Ethereum, which are known for their high volatility, Tether is designed to have a stable value as it is pegged to the US dollar. This makes it a popular choice for investors looking for stability rather than price gains. In this article, we will discuss how to invest in Tether in India, including the different platforms available and the steps to purchase it.

How to buy USDT with INR in India

Tether (USDT) is a stablecoin, designed to hold a near-constant value, unlike other cryptocurrencies such as Bitcoin or Ethereum. It is pegged to the US dollar, meaning that 1 tether is always equal to $1.

Yes, it is legal to buy USDT in India. Here are some ways you can do so, using INR:

Using Binance

• Create a free account on the Binance website or app, and verify your identification.
• Choose how you want to buy the Tether asset. You can use a debit/credit card, Google Pay, Apple Pay, or a third-party payment.
• Navigate to the "Buy Tether USDt with USD" page on Binance.
• Select Tether and USD from the dropdown menu.
• Follow the remaining steps for your chosen payment method.
• Store your Tether in your personal crypto wallet, or keep it in your Binance account.

Using ZebPay

• Create a free account on ZebPay and verify your identity.
• Deposit a minimum balance of 100 INR into your ZebPay wallet using a bank transfer.
• Click on the Tether icon in the Quick Trade or Exchange panel.
• Enter the INR amount you would like to invest.
• Check the order details and place your buy order.

Using BuyUcoin

• Sign up with your email ID and complete the KYC process.
• Deposit crypto or INR directly into your BuyUcoin wallet.
• Visit the BuyUcoin Exchange menu and find USDT Coin or the INR-USDT exchange pair.
• If you don't have INR, add funds using one of the payment methods such as UPI Transfer, NEFT, or Bank Transfer.
• Buy Tether.

Using CoinSwitch

CoinSwitch is another app-based option for buying Tether in India. You can follow these steps:

• Open the CoinSwitch App, click on the Market tab, and select Tether.
• Click on the 'Buy' button.
• Enter the amount you would like to buy Tether for and click on the 'Preview Buy' button.
• Check the order details and proceed by clicking 'Buy'.

How to store USDT

Storing USDT can be a complicated matter, as there are three different types of USDT tokens, each residing on a different blockchain (Omni, ERC-20, and TRC-20). It is important to know which type of USDT tokens you own, as sending USDT between wallets from different blockchains will result in a loss of funds.

Ledger Nano S (Hardware Wallet)

The Ledger Nano S is one of the most popular hardware wallets, providing the utmost security by storing private keys in cold storage on the device itself. It also has PIN protection and dual digital and physical inputs to verify each transaction. It supports ERC-20 tokens and costs $59.

Exodus (Desktop Wallet)

Exodus is a highly user-friendly wallet, supporting USDT and over 100 other digital assets. It gives you full control of your private key, which remains on your device at all times. There have been no reported security breaches or hacking attempts, making it a positive choice for security.

Coinomi (Mobile/Desktop Wallet)

Coinomi is one of the most popular mobile multi-currency wallets, supporting both Android and iOS devices, as well as Windows, Linux, and Mac OS for its desktop version. It supports both Omni and ERC-20 tokens, making it a versatile choice. It also offers an in-built exchange function with Changelly and ShapeShift.

MyEtherWallet (Web Wallet)

MyEtherWallet is an online wallet and the most popular Ethereum and ERC-20 wallet available. While it needs an internet connection to access funds, the private keys are stored only on your device, providing some security. However, it is important to be cautious about phishing attacks, as hackers can redirect you to a malicious site to phish your private keys.

OmniWallet (Web Wallet)

OmniWallet is one of the first wallets to support Tether and is currently the only remaining wallet for Omni Layer USDT. While it is an online wallet, it provides additional security by supporting two-factor authentication. It also supports Bitcoin but has limited multi-currency support and no exchange available.

Nexo (Mobile/Desktop Wallet)

Nexo is a crypto lending service that offers a fully-fledged custodial USDT wallet. When you store your USDT on Nexo, you also earn interest (8% annually). Withdrawals from the Nexo wallet can take up to 24 hours, so it is not suitable for instant transactions.

Binance (Web/Mobile Wallet)

Binance is one of the most used wallets and supports all kinds of Tether. It offers two-factor authentication for security, but it is limited in that you can only spend your cryptocurrency on other cryptocurrencies.

Guarda (Web Wallet)

Guarda's web version is one of the best and most popular web wallets on the market. It supports both Omni and ERC-20 tokens and has a beginner-friendly interface that can be accessed through any internet-enabled device. It also offers in-app exchanges, a Chrome extension, and staking support for some coins.

Atomic Wallet (Desktop/Mobile Wallet)

Atomic Wallet is built with a focus on security, anonymity, and decentralization, offering a wide variety of features. It supports ERC-20 and TRC-20 tokens but not Omni tokens. It also supports Atomic Swaps smart contracts and integrated exchanges like Changelly and Shapeshift.

When choosing a USDT wallet, consider factors such as token types supported, ease of use, security, customer support, and compatibility with other cryptocurrencies.

USDT price analysis

Tether (USDT) is a stablecoin, a type of cryptocurrency designed to have a stable value relative to the US dollar. Unlike other cryptocurrencies, Tether experiences minimal price changes and is not expected to appreciate in value. Instead, it aims to maintain a near-constant value, with 1 Tether equalling 1 US dollar.

As of November 17, 2024, the live price of Tether is $1.00 USD, with a 24-hour trading volume of $115.57 billion to $129.93 billion USD. The market capitalization is around $114.25 billion to $127.54 billion USD, with a circulating supply of 114 billion to 127.54 billion USDT coins.

Tether's price history has been relatively stable, with the highest price of $1.09990 USD on May 19, 2021, and the lowest price of $0.94100 USD on May 12, 2022.

Tether is unique in that its value is guaranteed by the company to remain pegged to the US dollar. Whenever Tether issues new USDT tokens, it allocates an equal amount of USD to its reserves, ensuring that each USDT is fully backed by cash and cash equivalents. This makes USDT a safe haven for crypto investors during periods of high volatility, as they can temporarily move their portfolios to Tether without completely cashing out.

However, there have been controversies regarding the validity of Tether's claims about their USD reserves, which has impacted USDT's price. There are concerns about the lack of independent third-party audits of Tether's reserves.

Despite these controversies, Tether remains the dominant stablecoin in the market, with one of the largest market capitalizations.

How to sell USDT in India

Tether (USDT) is a stablecoin, a type of cryptocurrency designed to have a stable value, in this case, pegged to the US dollar. It is possible to buy and sell Tether in India, and there are several ways to do so. Here is a step-by-step guide on how to sell USDT in India:

Cryptocurrency Exchanges:

This is a fast and convenient way to sell USDT and can be done through the following steps:

• Create an account on a reputable cryptocurrency exchange in India, such as CoinDCX, ZebPay, WazirX, Mudrex, or CoinSwitch.
• Complete the Know Your Customer (KYC) verification process by submitting documents such as your passport or PAN card.
• Deposit your USDT into the exchange wallet.
• Go to the trading section and find the USDT/INR trading pair.
• Place a sell order for your USDT, choosing between a market order or a limit order.
• Once your order is filled, the INR will be deposited into your exchange wallet, which can then be withdrawn to your bank account.

Peer-to-Peer (P2P) Platforms:

P2P platforms allow you to connect with buyers who want to purchase your USDT. This option may offer better exchange rates, but it is important to choose a reputable platform with security measures to protect against fraud. Here are the steps to follow:

• Create an account on a reputable P2P platform.
• Complete the KYC verification process.
• Go to the sell USDT section and find a buyer offering a good exchange rate.
• Place a sell order with the buyer.
• Once the buyer has paid, release the USDT from your escrow wallet, and the buyer will send the INR to your bank account.

Offramp Platforms:

Offramp platforms allow users to sell USDT for INR without intermediaries. There are two major offramp platforms in India: Onramp and Local DT. Offramps offer quick exchanges and significantly reduce risks compared to other methods. However, they may have deductions and tax implications.

Other Options:

There are also platforms like Pursa and MoonPay that allow users to sell USDT in India. Pursa offers a wide range of payment methods and anonymous transactions. MoonPay supports payouts to local bank accounts and credit/debit cards in over 80 countries, including India.

When selling USDT, it is important to consider transaction fees, payment methods, and the security measures provided by the platform or service.

Is USDT a worthy investment?

Tether (USDT) is a stablecoin, meaning it is designed to have a stable value by being pegged to the US dollar. One USDT token is valued at $1 USD and is supported by $1 USD in real assets. Tether is also backed by other commonly used fiat currencies, such as the euro and the Japanese yen.

Tether is widely accepted in many online and offline stores and can be used to make easy cross-border payments. It is also a popular way to purchase other cryptocurrencies, such as Bitcoin and Ethereum.

Tether is considered a wise investment choice due to its transparency and price stability when compared to other cryptocurrencies. It was created to bridge the gap between traditional fiat money and cryptocurrencies, fostering a dependable, transparent, and user-friendly ecosystem. Tether is also widely accepted in online transactions and may gain more popularity among traders on various crypto exchanges.

However, Tether is not entirely without risk. On 12 May 2022, Tether lost its $1 peg amid the TerraUSD (UST) stablecoin crash, dropping as low as $0.9485 before recovering. This momentary price fluctuation demonstrated that even stablecoins are not immune to volatility in the crypto world. There are also regulatory risks, as Tether is not subject to public auditing to check whether its reserves can fully back the USDT in circulation.

In summary, Tether could be a worthy investment for those seeking to diversify their portfolio and profit from the crypto market without the high volatility associated with typical cryptocurrencies. However, it is important to carefully consider the risks, including the lack of regulation and potential for price fluctuations, before investing.

Frequently asked questions