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The 5 Best Places to Buy USDT in 2024
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The 5 Best Places to Buy USDT in 2024

The 5 Best Places to Buy USDT in 2024
The 5 Best Places to Buy USDT in 2024
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Key Takeaways

  • USDT (Tether) is a stablecoin pegged to the price of the US dollar. 
  • Exchanges like Coinbase, Kraken, Binance, Gemini, and Uniswap are great places to buy USDT.

In this guide, we’ll walk through the best exchanges to buy USDT and answer a few frequently asked questions about Tether.

Platform Why We Recommended It CoinLedger Rating
Kraken Best for low fees 9.5/10
Coinbase Best for ease of use 8.9/10
Gemini Best for regulatory compliance 8.9/10
Binance/Binance.US Most popular 8.4/10
Uniswap Best decentralized exchange 8.5/10
Best for Low Fees
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Kraken
Kraken
Kraken is one of the oldest continuously-running cryptocurrency exchanges in the world. Today, Kraken serves more than 10 million crypto investors around the world. The platform is considered a great choice for beginner and experienced traders alike!

CoinLedger Rating: 9.5/10
Pros & Cons
Best for Ease of Use
Learn More
Coinbase
Coinbase
Coinbase is one of the world’s biggest cryptocurrency exchanges — currently serving more than 100 countries around the world! Coinbase is well-known for its easy-to-use interface and its world-class security measures.

CoinLedger Rating: 8.9/10
Pros & Cons
Best for Regulatory Compliance
Learn More
Gemini
Gemini
Gemini is a cryptocurrency exchange known for its commitment to regulatory compliance — it's one of the few cryptocurrency exchanges available in all 50 states! Gemini supports more than 100 cryptocurrencies — including USDT.

CoinLedger Rating: 8.9/10
Pros & Cons
Most Popular
Learn More
Binance/Binance.US
Binance/Binance.US
Binance is the world’s largest exchange by volume. While the platform has run into issues with regulators in recent years, Binance is famous for offering low fees and a wide selection of cryptocurrencies!

CoinLedger Rating: 8.4/10
Pros & Cons
Best Decentralized Exchange
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Uniswap
Uniswap
Uniswap is a decentralized exchange — which means unlike the other exchanges listed, liquidity is provided by users and transactions are approved via smart contracts. Uniswap allows you to buy cryptocurrencies like USDT through MoonPay — an application that supports payments through bank transfers and credit cards.

CoinLedger Rating: 8.5/10
Pros & Cons

What is USDT?

USDT, or Tether, is a cryptocurrency that is pegged to the value of the US dollar. This means one USDT is intended to remain equivalent to one USD, providing a stable value in the often volatile cryptocurrency market. 

How to Buy USDT?

Let’s walk through a step-by-step process to buy USDT 

Step 1: Choose a Reliable Exchange: Select a platform that supports USDT and has a strong reputation for security and reliability. Decide whether you wish to use a centralized or decentralized exchange. 

  • A centralized exchange is controlled by a centralized entity such as Coinbase. A centralized exchange is typically a better option for beginners because it typically comes with an easy-to-use interface and customer support options. 
  • A decentralized exchange allows users to buy and sell cryptocurrency in a peer-to-peer fashion. Decentralized options are a great option for investors who are interested in exploring an alternative to traditional finance platforms. 

Step 2: Create and Verify Your Account: Once you find a reputable exchange, you can create an account. You may be required to verify your identity and provide information like your name, Social Security number, and a copy of your driver’s license/other form of identification. It may take a few days for your account to be verified. 

Currently, decentralized exchanges do not require Know Your Customer (KYC) information. However, it’s likely that these exchanges will be required to introduce KYC policies in the near future to comply with 1099 reporting regulations put in place by the Build Back Better Act

Step 3: Deposit Funds: Once your account is created, decide how you are going to pay for the purchase. 

  • Cash: Typically, centralized exchanges allow you to fund your account via bank transfers or wire transfers. It’s likely that you won’t be allowed to add cash into your account until you finish the verification process laid in the last step. 
  • Credit Card: While some exchanges like Kraken support buying cryptocurrency with a credit card, it’s not recommended. Many credit card issuers like Bank of America, Wells Fargo, and Chase do not allow crypto purchases. Other credit cards charge high fees for crypto transactions. 
  • Cryptocurrency: You can purchase USDT using your existing cryptocurrency holdings. Before you choose this option, it’s important to remember that converting cryptocurrency to a stablecoin like USDT is considered a crypto-to-crypto trade subject to capital gains tax. 

Step 4: Purchase USDT: Now, search for USDT on your exchange and make the purchase! Before you confirm the trade, you should get an estimate on how much you’ll pay in fees. 

Step 5: (Optional) Transfer Your USDT: Some investors choose to transfer their USDT and other cryptocurrencies to a secure custodial wallet. This can help keep your USDT safe in the case that your exchange is hacked or goes bankrupt. In addition, many software wallets allow you to connect to decentralized applications! 

How can I buy USDT with no KYC? 

Currently, decentralized exchanges like Uniswap give users the option to buy USDT and other cryptocurrency with no KYC

However, this is likely to change in the near future. 

The Build Back Better Act mandates that all cryptocurrency exchanges — centralized and decentralized — will be required to issue Form 1099-DA to users. It’s likely that decentralized exchanges will need to introduce KYC policies to comply with these regulations. 

Should I use USDT? 

Today, USDT is the most popular stablecoin in the DeFi ecosystem. 

However, USDT has faced regulatory challenges in the past — in 2021, Tether was fined $41 million for misleading customers about its reserve holdings. 

Because of the controversies around Tether, some investors have turned to alternative stablecoins like USDC. 

For more information, check out our guide to USDT vs USDC

How are stablecoins like USDT taxed? 

Stablecoins like USDT are taxed like other cryptocurrencies and can be subject to capital gains tax and income tax. 

When you trade USDT for USD, you’ll incur a capital gain (though it’s likely that this capital gain will be close to 0). 

For more information, check out our guide to stablecoin taxes

Frequently asked questions

  • Can I buy USDT on Coinbase? 
    MinuPlus
  • Can US citizens buy USDT? 
    MinuPlus
  • How to buy USDT with a credit card in the USA? 
    MinuPlus
  • Can I buy USDT with cash? 
    MinuPlus
  • MinuPlus
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