Stablecoins have become essential tools in the world of digital assets, offering stability in an otherwise volatile market. Among them, Tether (USDT) stands out as one of the most widely used — a digital dollar equivalent that maintains a 1:1 peg with the U.S. dollar. Whether you're new to crypto or expanding your portfolio, understanding how to buy and sell USDT is a fundamental skill.
This comprehensive guide walks you through the complete process of trading USDT on Binance, one of the world’s largest and most trusted cryptocurrency exchanges. From account setup to executing your first transaction, we’ll cover every step clearly and securely.
Why Trade USDT?
Before diving into the mechanics, it's important to understand why USDT is so popular:
- Price Stability: USDT is designed to maintain a stable value relative to the U.S. dollar.
- Liquidity: It’s accepted across nearly all major exchanges and trading pairs.
- Trading Utility: Traders use USDT to hedge against volatility or quickly enter/exit positions.
- Global Access: Enables seamless cross-border transactions without traditional banking delays.
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Step-by-Step Guide: How to Buy USDT on Binance
1. Create a Binance Account
Start by visiting the official Binance website. Click on "Register" and choose to sign up using your email address or mobile number.
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2. Complete Security Verification
After entering your contact details, complete the CAPTCHA puzzle by sliding to match the image. Then, check your phone or inbox for a 6-digit verification code (valid for 30 minutes). Enter it promptly and click "Submit."
3. Verify Your Identity (KYC)
For enhanced security and higher trading limits, proceed with identity verification:
- Select your country or region of residence.
- Upload clear photos of both sides of a government-issued ID (e.g., passport, national ID).
- Wait for approval — this usually takes just a few minutes.
Once verified, you’ll gain access to expanded features, including higher withdrawal limits and P2P trading capabilities.
4. Access the “Buy Crypto” Section
From the homepage, locate and click on "Buy Crypto" (also labeled “One-Click Buy” in some interfaces).
5. Choose USDT and Payment Method
- Navigate to the "Custom" or "Self-Selected Zone" tab.
- Search for USDT and select it.
- Choose CNY (Chinese Yuan) as your fiat currency if available.
- Pick a reliable merchant from the list based on ratings and transaction volume.
6. Enter Purchase Amount
Input the amount of USDT you wish to buy. The system will display the equivalent CNY amount and applicable fees.
Click "Buy USDT" to confirm. After payment is made via your selected method (e.g., bank transfer, Alipay), the USDT will be credited to your funding account.
How to Sell USDT on Binance
Selling USDT follows a similar flow but requires a preliminary step: transferring funds from your spot wallet.
1. Transfer USDT to Your Funding Account
- Go to Wallet > Funding Account.
- Click "Transfer".
- Select USDT as the coin type.
- Enter the amount to move from your Spot Wallet to your Funding Account.
- Confirm the transfer.
⚠️ This step is crucial — P2P selling can only be done from the funding account.
2. Initiate the Sale
- Return to the "Buy Crypto" page.
- Switch to the "Self-Selected Zone."
- Click "Sell", then choose CNY as the payout currency.
- Filter sellers by preferred payment methods (e.g., WeChat Pay, bank transfer).
3. Confirm the Transaction
Enter the amount of USDT you want to sell and click "Sell USDT." Once a buyer accepts your offer, follow their payment instructions carefully.
After confirming receipt of funds, release the USDT from escrow. The transaction completes once both parties fulfill their obligations.
Can You Track Past Transactions?
Yes. To review your trading history:
- Go to the Self-Selected Zone.
- Click on "Orders" in the top-right corner.
- View completed, pending, or canceled trades with full details including timestamps, amounts, and counterparties.
Keeping track of past orders helps monitor performance and resolve disputes efficiently.
Is Buying and Selling USDT Safe?
In general, trading USDT on reputable platforms like Binance is considered secure — provided you follow best practices.
Security Features on Binance
- Two-Factor Authentication (2FA): Adds an extra layer of login protection.
- Cold Storage: Most user funds are stored offline, reducing hacking risks.
- Real-Time Monitoring: Detects suspicious activity and blocks unauthorized access.
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Risks to Be Aware Of
While the platform provides strong safeguards, users must also stay vigilant:
| Risk Type | Description |
|---|---|
| Market Risk | Though USDT aims to stay at $1, minor fluctuations can occur during extreme market stress. |
| Liquidity Risk | In rare cases, especially during regulatory crackdowns or banking issues, converting USDT to fiat may face delays. |
| Counterparty Risk | When using P2P markets, always trade with high-reputation vendors and never release coins before receiving payment. |
Additionally, never share your private keys or recovery phrases. Store them securely offline — preferably in a hardware wallet for long-term holdings.
Frequently Asked Questions (FAQ)
Q: Do I need to verify my identity to buy USDT?
A: Yes, completing KYC (Know Your Customer) verification increases your trading limits and unlocks more features on Binance.
Q: Can I buy USDT directly with Chinese Yuan (CNY)?
A: Yes, through Binance’s P2P marketplace, you can purchase USDT using CNY via various local payment methods like bank transfers or mobile wallets.
Q: How fast are USDT transactions processed?
A: Most purchases are completed within minutes. P2P trades depend on buyer/seller responsiveness but typically settle within 15–30 minutes.
Q: Is USDT backed 1:1 by real dollars?
A: Tether claims its reserves back each USDT with cash or cash-equivalent assets. While audits have improved transparency, some scrutiny remains from regulators.
Q: What happens if USDT loses its dollar peg?
A: Temporary de-pegging has occurred under market stress, but Tether has historically restored parity. Still, treat even stablecoins as subject to risk.
Q: Should I keep my USDT on an exchange?
A: For active traders, keeping small balances on exchanges is common. However, for larger amounts or long-term storage, use non-custodial wallets where you control the keys.
Final Thoughts
Learning how to buy and sell USDT on Binance opens doors to greater flexibility in managing your crypto investments. With its stable value and wide acceptance, USDT serves as a bridge between traditional finance and blockchain innovation.
By following this guide — from registration and verification to executing trades and securing assets — you’re well-equipped to navigate the process confidently and safely.
👉 Start exploring secure and efficient ways to manage your digital currency portfolio now.
Remember: always prioritize security, double-check transaction details, and stay informed about evolving regulations. With smart habits and the right tools, trading stablecoins like USDT can be both simple and rewarding.