USDT is the largest stablecoin globally by market capitalisation, with an impressive $65 billion USDT issued. Several investors opt for USDT to safeguard themselves against market fluctuations or to stake it to earn interest. If you’re wondering how to buy USDT in Australia, you’re in the right place. This article will guide you on how to buy USDT on the best Australian crypto exchanges.
What is Tether (USDT)?
Tether (USDT), a stablecoin designed to mirror the value of the U.S. dollar, is issued by a Hong Kong-based company of the same name. USDT value is achieved by maintaining a reserve of commercial paper, fiduciary deposits, cash, reserve repo notes, and treasury bills. These reserves hold a U.S. dollar value corresponding to the number of USDT in circulation.
Initially introduced in July 2014 under the name “Realcoin,” it served as a layer-2 token built on Bitcoin’s blockchain using the Omni platform. Over time, it underwent name changes, transitioning from USTether to its current name, USDT. This stablecoin has expanded its compatibility beyond Bitcoin and can now function on Ethereum, EOS, Tron, Algorand, and OMG blockchains.
The primary goal of USDT is to combine the practical aspects of cryptocurrencies, such as the ability to be exchanged directly between users without requiring a trusted intermediary, with the stable value provided by the U.S. dollar.
How to Buy USDT in Australia?
Step 1: Find an exchange platform
As the world’s most widely circulated stablecoin, Tether (USDT) can be bought on major crypto exchanges. Regarding cryptocurrency exchanges, they can generally be categorised into two types:
Centralised exchanges serve as intermediaries and oversee all transactions on their platforms, providing security and trust in the absence of fraudulent activities. They are user-friendly and ideal for crypto-transitioners but often charge higher fees for buying, selling, or converting coins.
Meanwhile, decentralised exchanges facilitate peer-to-peer crypto transactions, eliminating the need for intermediaries. Since the transactions are directly on the blockchain without a central entity, they are less susceptible to cyberattacks. However, the lack of regulatory oversight means users have limited protection in case of transaction issues. These exchanges may be challenging for those with limited knowledge, making them more suitable for experienced investors.
This guide on how to buy USDT will provide step-by-step instructions using screenshots from the CoinSpot account. If you prefer the simplest way to follow along and purchase USDT, we recommend registering on CoinSpot.
Step 2: Create an account
To create an account with CoinSpot, visit CoinSpot’s homepage via this link: https://coinspot.com.au. You’ll find a white “Register” button in the top right corner. Click on it to go to a page, as in the screenshot below. Enter your email address, select a password, confirm that you’re not a robot by checking the box, and then click “Create Account.”
Once your CoinSpot account is successfully created, you need to verify it. Click on the “Complete Verification” button and follow the instructions. Start by verifying your email address, then fill out your details and verify your driver’s licence. The verification process may take some time to complete.
Step 3: Deposit AUD into your account
Once you have successfully created an account, the next step is depositing funds to purchase USDT. Several options are available for depositing funds, including:
- Bank account: You can deposit funds from your local bank account. It is advisable to confirm with the exchange you choose whether any fees are associated with bank transfers.
- Credit or debit card: Linking a card to your account offers a convenient way to add funds. Card payments allow for instant purchases or the setup of recurring purchases. However, note that using a card usually incurs an additional fee.
- Cryptocurrency: You can transfer cryptocurrency from another exchange or wallet to purchase USDT. Typically, you can exchange Bitcoin or stablecoins for USDT. However, this may vary, so you must search for USDT on the spot market to determine which cryptocurrencies it can be traded for.
For example, to deposit AUD into your CoinSpot account, you can find the “Deposit Funds” button under the CoinSpot logo in the top left corner. Clicking on it will direct you to a page where you can see different deposit methods. Many users prefer using POLi as it offers instant, convenient, and fee-free transactions. Select the desired deposit amount, choose your bank, and click “Continue to POLi” to proceed with the payment.
Step 4: Buy USDT in Australia
After your funds have arrived in your CoinSpot account, it’s time to purchase USDT. Begin by clicking on the “Buy/Sell” option in the top menu, search for USDT and click on the “Buy USDT” button.
You will be directed to the purchase screen showing the USDT price. Provide the amount of Australian dollars (AUD) you want to spend and click on the blue “Buy” button.
A pop-up will appear, showing a summary of your purchase with details such as the number of coins, the price per coin, the fee, and the total amount to be paid. In the screenshot below, let’s assume a purchase of USDT worth $500. If the information is correct, click “Confirm Buy” to finalise the transaction.
Step 5: Store your Tether
Once you have some USDT, it’s time to decide on the storage of your digital assets, and you have a few options to consider:
Keeping USDT on the exchange: The exchange where you purchased Tether will likely provide an option to store your tokens within your account. This is convenient, especially for novice users, but it does come with risks of hackers breaching the exchange. In addition, when your assets are on the centralised exchange, you do not have direct access to the private keys that grant you full control over your assets. Opting for this method means relying on a third party and may leave you vulnerable to a security breach.
Crypto wallet: A crypto wallet offers a more secure storage option for your digital assets but requires more responsibility. Storing your assets in a digital wallet necessitates using a numerical key for ownership verification and transaction authentication. However, if this key is lost, you will lose access to your assets without any means of proving ownership.
There are two types of crypto wallets: hot wallets and cold wallets. The former allows for the convenient movement of tokens in and out of the wallet for transactions but comes with potential cyberattacks. On the other hand, the latter does not connect to the internet and allows you to control your keys, thus reducing the risk of breaches. However, it may be less convenient for those who frequently need to transfer assets in and out of storage.
Where to Buy USDT in Australia?
There are several crypto exchanges where you can buy USDT in Australia, including CoinSpot, Binance, Crypto.com, and Kraken. CoinSpot is an excellent choice among these options due to its fast and cost-effective AUD deposits, low trading fees, and high-level security. It is Australia’s largest digital asset trading platform, supporting 380+ digital assets and allowing you to stake your USDT to earn high passive income.
It is easy if you are interested in pairing your Tether holdings with other cryptocurrencies. Most crypto exchanges enable users to trade Tether with other coins. While Tether does not technically “pair” with other coins since it is a stablecoin pegged to the U.S. dollar, it’s a popular choice for purchasing other coins and maintaining liquidity in the markets. For converting your Tether into Bitcoin (BTC), Ethereum (ETH), and other major coins, you can select exchange platforms such as Binance, KuCoin, and Coinbase.
If you are still unsure which exchange is the best for buying USDT, you can read our review of the best crypto exchanges before deciding. And if you prefer buying and selling USDT and other coins on your mobile, refer to our review of the best crypto apps in Australia for further details.
Is Tether a Good Investment?
If you want to buy Tether, it is essential to understand the associated risks. Here are some key points to consider when purchasing USDT:
- Stablecoin Nature: USDT is a stablecoin designed to maintain a stable value; thus, investing in USDT for a profit is similar to investing in cash (USD). If you aim to invest in a coin with a high chance of it increasing in value, you can explore non-stablecoin alternatives to USDT.
- Controversies: Tether Limited, the company behind USDT, has faced controversies due to its alleged close association with the Bitfinex exchange. While Tether Limited claims that fiat currency reserves back USDT, it discontinued its relationship with auditors responsible for verifying this claim. This situation has led to speculation and uncertainty about the extent to which US dollar reserves securely back USDT.
- Competition: USDT is just one of several stablecoins pegged to the US dollar. Alternatives like USDC and Binance USD offer additional options worth considering.
- Use-case: Considering the stable nature of USDT, investing in this token is not primarily driven by profit motives. Stablecoins are generally used to mitigate market volatility while still retaining your assets in the crypto space. They can also be used for engaging in DeFi activities such as staking or yield farming without being overly concerned about market fluctuations.
FAQs
What can I buy with USDT?
With USDT, you can easily buy other coins by exchanging it, or you can convert your USDT into gift cards for popular e-commerce stores like Walmart and Amazon. In addition, it’s possible to earn interest on your USDT holdings through specialised crypto savings accounts, which offer higher rates than traditional online banks.
How to purchase USDT instantly?
For an instant purchase of USDT without the need to deposit funds beforehand, you can use Easy Crypto Australia. This platform allows you to buy crypto directly from your bank account, and the coins are immediately transferred to your personal wallet. There’s no requirement to deposit money into the exchange, and your crypto assets are never held on its platform. You retain complete control over your crypto holdings.
Can I buy USDT with a credit card?
Yes. You can purchase USDT by various payment methods, including Visa, Mastercard, and major credit or debit cards. Many exchanges globally accept credit card deposits, allowing you to use those funds to buy USDT or other cryptocurrencies.
Where to stake USDT to earn interest?
If you wish to earn interest on your USDT through staking, you can consider Nexo, Binance Earn and Crypto.com. Remember to do your own research and consider factors such as platform reputation, interest rates, and security measures before choosing a platform to stake your USDT.
Is buying USDT in Australia safe?
Yes. If you use a top Australian cryptocurrency exchange, rest assured that buying, selling, and trading USDT in Australia is secure. These exchanges, including CoinSpot, prioritise multi-layered security measures and are registered with AUSTRAC, ensuring peace of mind during transactions. For further information, you can read our review of the best Australian crypto exchanges.
Final Thoughts
Tether (USDT), the largest stablecoin globally by market capitalisation, is a valuable tool for mitigating crypto volatility and can be bought on various platforms. If you want to purchase USDT in Australia, CoinSpot provides a fast, cost-effective, and reliable platform with minimal trading fees. You can transfer your USDT from CoinSpot to DeFi apps to earn an annual percentage yield or stake it for passive income. However, note that using USDT or other coins may have tax implications in Australia. Thus, consult a professional tax advisor before purchasing or staking USDT to comply with tax regulations.
