How to Buy USDT in Australia: The Only Tether Guide You Need
If you’re looking to buy USDT in Australia, there are a few things to be aware of from costs, risks, use cases, and of course, how to buy Tether in Australia. Let’s get started.
Table of Contents
Frequently Asked Questions (FAQs)
What is Tether (USDT)?
Tether (USDT) is a type of digital currency pegged to the value of the US dollar, meaning 1 USDT is worth 1 dollar. Tether tokens are backed by an equivalent amount of traditional fiat currencies held in a designated bank account. This means that for every USDT token issued, there is a corresponding one US dollar held in reserve.
This peg to the USD is intended to maintain USDT’s value at $1.00 USD, making it a reliable medium for transferring value across different exchanges and platforms without the risk of significant price swings.
Tether fees are very low, typically just a few cents per transaction, and transactions are completed in minutes, making it a popular option for transferring money as well as escaping volatility in the crypto market.
What’s a USDT Address?
A USDT address is a unique identifier used to receive and send USDT transactions on the blockchain. USDT can exist on various blockchains like Ethereum (ERC20), Tron (TRC20), and others. Each blockchain has its own format and fee structure, so it’s important to ensure that you use the correct address format for your specific transaction to avoid loss of funds.
Why Buy USDT in Australia?
Buying USDT offers several advantages, including stability, liquidity, and utility.
Stability: As a stablecoin, USDT maintains a stable value, reducing the risk associated with price volatility common in other cryptocurrencies.
Liquidity: USDT is highly liquid and widely accepted across numerous exchanges and trading platforms, facilitating easy conversion to other cryptocurrencies or fiat currencies.
Utility: USDT can be used for trading, remittance, and as collateral in various financial applications, including decentralized finance (DeFi) platforms.
While USDT offers stability and liquidity, it is not without risks.
Regulatory Scrutiny: Tether Limited, the company behind USDT, has faced regulatory scrutiny and controversy regarding the transparency of its reserves.
Market Competition: USDT is one of several stablecoins available, with competitors like USDC and Binance USD offering similar benefits and potentially greater transparency.
Market Risk: While Tether is very widely used, it’s not invulnerable. There have been some instances in the past of the value of 1 USDT temporarily fluctuating above or below the price of the US dollar. Additionally, if the issuing company was to fail to collateralize Tether with an equivalent sum of US dollars, the price of Tether could collapse. This is not considered likely, but it’s important to be aware of the risks when dealing in any asset.
How to Buy USDT in Australia
To buy USDT in Australia, choose a reputable exchange like CoinSpot or Independent Reserve, create and verify your account, deposit AUD via bank transfer or credit card, and then purchase USDT through the trading section. Store your USDT in a secure wallet for safety.
Let’s take a look at a more detailed step-by-step guide.
- Compare Crypto Exchanges: Research and compare reputable cryptocurrency exchanges such as CoinSpot, Coinstash, and Swyftx. Evaluate their features, fees, security measures, and user reviews to find the best option for your needs.
- Create an Account: Sign up for an account on your chosen exchange. This typically involves providing your email address, creating a password, and verifying your identity through KYC (Know Your Customer) procedures, which may require submitting identification documents.
- Verification Process: Complete the KYC verification by submitting necessary documents such as a passport or driver’s license. This step is crucial for security and compliance with regulatory requirements.
- Deposit AUD: Deposit Australian Dollars (AUD) into your exchange account. Most exchanges support various deposit methods, including bank transfers, credit/debit cards, and PayID. Follow the instructions provided by the exchange to fund your account.
- Buying USDT: Navigate to the trading section of the exchange, select USDT, and enter the amount of AUD you wish to convert. Confirm the transaction to complete the purchase. Your newly acquired USDT will be credited to your exchange wallet.
How to Store USDT Safely
You can store your USDT in a variety of types of wallets with different levels of security and convenience.
Hot Wallets
The least secure way to store your USDT is on a crypto exchange. While people commonly store funds on an exchange due to the convenience of having instant access to trading with no need to spend time and money depositing funds, this leaves your USDT vulnerable to a security breach on the exchange, and many such hacks have happened in the past.
If you’re storing funds on an exchange, the best practice is to choose a regulated service like Grineo which is regulated by AUSTRAC, meaning government regulators have determined that the platform’s security and business practices are fit for purpose.
Grineo accounts are protected by PassKey encryption, meaning user passwords are not stored on Grineo servers. Users can order the Grineo Card and spend USDT directly in stores or withdraw USDT from any ATM in the world that accepts Visa cards.
Users with large sums of USDT could store the bulk of their assets in cold storage and a smaller amount for daily spending on their Grineo account.
Cold Wallets
Cold wallets allow investors to store funds offline where nobody can remotely access them. A cold wallet is typically a hardware wallet like the Ledger Nano or Trezor Model One. Cold wallets, or hardware wallets, are seen as less convenient in terms of easy access to funds. They are, however, more secure. Again, many users opt for a hybrid approach with some funds stored offline and the rest stored online for trading.
USDT to AUD Conversion
Here’s how to convert USDT to AUD, or how to cash out Tether to Australian dollars.
Using USDT to AUD Calculators
Conversion tools are essential for understanding the current exchange rate between USDT and AUD. These calculators can be found on most crypto exchange platforms and financial websites. Simply enter the amount of USDT you want to convert, and the tool will display the equivalent amount in AUD. These tools often account for real-time market rates and fees, providing an accurate estimate of the conversion. You can find a live USDT to AUD calculator on the Grineo App.
Cash Out Instantly With Grineo
Grineo allows users to simply withdraw USDT as AUD from the nearest ATM that supports Visa, or to cash out of USDT by spending it anywhere with the Grineo Card. You can tap or swipe your card to spend USDT just like regular cash.
You can also trade USDT for BTC, USDC, and ETH in the Grineo App at real market rates. The Grineo card is due for release this quarter and you can join the waitlist here.
Withdrawing to Bank Accounts
If you don’t have the Grineo Card, you can cash out via an exchange.
To convert USDT to AUD and withdraw it to your bank account, follow these steps:
- Sell USDT: On your chosen exchange, navigate to the trading section and sell your USDT for AUD.
- Withdraw AUD: Once the sale is complete, go to the withdrawal section of your exchange account. Enter your bank account details and the amount of AUD you wish to withdraw.
- Confirm Transaction: Confirm the withdrawal. The funds should appear in your bank account within a few business days, depending on the exchange and banking processes.
Advanced Uses of USDT
There are a number of reasons you might want USDT beyond spending it with the Grineo Card.
Trading
USDT is widely used as a base currency for trading other cryptocurrencies. You can trade USDT for Bitcoin (BTC), Ethereum (ETH), and various altcoins on most major exchanges. This provides liquidity and stability, allowing you to hedge against market volatility while trading.
Staking and Earning
Many platforms offer opportunities to earn interest on your USDT holdings through staking or lending. Services like Nexo and Crypto.com allow you to stake USDT and earn passive income. The interest rates vary by platform and market conditions, so it’s important to research and choose a reputable service.
DeFi Activities
USDT can also be used for yield farming in decentralized finance (DeFi) applications. You can provide liquidity to decentralized exchanges (DEXs), participate in yield farming, or use USDT as collateral for loans on platforms like Aave and Compound. These activities can generate additional income, though they come with their own risks and require a good understanding of DeFi protocols.
Frequently Asked Questions (FAQs)
Is it safe to buy USDT?
Yes, buying USDT is safe if you use a reputable exchange with strong security measures. Ensure the exchange is registered with regulatory bodies and follows best practices for cybersecurity.
Can I buy USDT with a credit card?
Yes, many exchanges allow you to buy USDT with a credit card. This method is convenient but may incur higher fees compared to bank transfers.
Where can I use USDT?
USDT can be used to trade other cryptocurrencies, make purchases on platforms that accept crypto payments, and participate in DeFi activities. It is also commonly used to transfer value between exchanges quickly and with low fees.
What is a USDT address?
A USDT address is a unique identifier used to send and receive USDT transactions. It can be on different blockchains, such as Ethereum (ERC20) or Tron (TRC20), so make sure to use the correct address format for your transactions.
How do I store USDT securely?
For maximum security, use a personal wallet such as a hardware wallet or a trusted mobile wallet. Avoid keeping large amounts of USDT on exchanges for extended periods.
Can I buy USDT on Grineo?
At the moment, Grineo doesn’t support direct purchases of digital assets. Buy crypto from an exchange and deposit it to Grineo to start using Grineo services. Grineo does not charge a deposit or withdrawal fee, and charges just a 1% fee on every card transaction.
