Buy Tether in the UK - Beginner's Guide to Buying USDT

How to Buy Tether in the UK

You can purchase Tether within the UK, online using a cryptocurrency exchange. This is the easiest way to buy and sell cryptocurrencies—all you need is a computer or mobile device. See below for our top picks of platforms that offer Tether and simple steps to buy Tether in the UK.

1. Choose a UK Platform

Those looking to purchase USDT will need to find a crypto trading platform where it’s available. As well as fees, security and regulation are important factors to consider when choosing a platform if you want to keep your funds safe.

There are detailed reviews of different platforms in the next section, but you can sign up for our top picks below.

2. Create and Fund Your Account

Complete the registration form with your name and contact details to create an account with your chosen trading platform. A photo ID is usually required to verify your account. Then, navigate to the deposit page to find payment options supported in the UK and select one to add funds to your account.

3. Buy Tether UK

If you have just deposited British pounds, you will need to search for the USDT/GBP trading pair. Create a buy order by entering the amount of USDT you wish to buy and simply clicking on the “Buy” button.

What is Tether & How Does It Work?

Tether is a Hong Kong-based company that issues stablecoins, the most popular of which is USDT, though Tether also issues tokens for euros, British pounds, Mexican pesos, Chinese yuan, and Gold.

Tether was originally launched in 2014 under the name Realcoin by Brock Pierce, Reeve Collins, and Craig Sellars. Although it was originally built on top of the Bitcoin blockchain, it has since been launched on many other blockchains, including Ethereum, TRON, and Binance Smart Chain.

USDT is pegged to the value of the US dollar, and is the most popular stablecoin, having the largest market capitalisation.

What is a Stablecoin?

A stablecoin is a digital token that mirrors the price of a certain currency or commodity. In the case of USDT, it mirrors the US dollar, so in theory, 1 USDT should always be worth $1.

The price can be kept stable algorithmically or, as with USDT, by backing tokens with dollar reserves. Stablecoins can be more convenient than cash when it comes to transferring value and trading other cryptocurrencies.

Is Tether a Good Investment?

Only you can decide whether buying USDT is the right move for you, but let’s take a look at some of the things you might want to consider when making that decision.

As USDT is a dollar-pegged stablecoin, this question could depend on the value of the US dollar, which can be affected by factors such as inflation, interest rates, and global economic conditions.

The value of the dollar is very stable compared to cryptocurrency, so USDT can be a safe haven for crypto investors during periods of higher volatility. It is also present in a great number of trading pairs on many crypto exchanges, making it a useful currency for trading against a variety of coins.

By using blockchain technology, Tether USD can be faster and more efficient than cash for making cross-border transactions, as well as for purchasing cryptocurrency. The liquidity of USDT also means it’s easy to convert to fiat currency at any time.

Tether supports multiple blockchains and claims to be 100% backed by reserves. USDT has seen widespread adoption by exchanges, blockchain protocols, and merchants, as well as individuals, leading to USDT becoming the most popular stablecoin and one of the largest cryptocurrencies by market cap.

One reason for Tether’s popularity is that USDT savings accounts offer much higher interest rates than banks. For example, Binance and OKX both offer 10% interest on USDT savings accounts, while Nexo offers up to 12%, making USDT a good hedge against inflation.

Risks of Buying Tether

Tether’s reserves have come under scrutiny in the past, with controversy over whether USDT is in fact fully backed by reserves. Tether claims it is now fully backed by reserves and transparent, but doubts may still remain for some.

It is worth bearing in mind that the value of the US dollar—and therefore of USDT—fluctuates against the pound. This means it is possible that the same number of USDT could be worth less in GBP at a later date.

Using an exchange or wallet that isn’t secure could put your USDT at risk, which is why we recommend using a regulated and reputable platform, such as the ones described in this article. If storing your USDT in a private wallet, make sure to keep your seed phrase somewhere safe to ensure you will be able to recover access to your coins if necessary.

What Payment Methods Can I Use to Buy Tether in the UK?

Many major platforms support GBP. Even if your desired platform doesn’t, you can always use your bank card as the final payment is converted into the base currency of the exchange. You can buy Tether in the UK through the following methods.

Bank Transfer

Making a bank transfer via Faster Payments can be a quick and cheap way to buy Tether. There is a fee of £1 for using this payment method on Binance. Coinbase allows free bank deposits and suggests allowing 1-3 business days for the payment to be processed, but it is usually immediate.

Credit/Debit Cards

Credit and debit cards are widely accepted so you can use them to purchase Tether on a number of different platforms. The fees charged for card deposits can be higher than other payment methods.

On Binance, for example, GBP bank card deposits carry a 1.8% fee, while on Coinbase the fee is 2.49%.

Skrill

Skrill is another digital wallet that allows you to easily move money online in seconds. While not widely accepted by crypto platforms, Skrill can be used to purchase Tether on Bitpanda.

Ways to Invest in Tether UK

There are a number of different ways that people in the UK can invest in Tether. We’ll look at a few in more detail below.

Buy and Hold Tether

The benefits of this method are that it is simple and anyone can do it. The strategy is fairly self-explanatory—you just buy some USDT and hold onto it for a period of time.

USDT doesn’t have the same price potential as other cryptocurrencies as it will always be worth the same as the dollar, but crypto investors may wish to move their capital into USDT during bear markets or periods of extreme volatility.

Trade Tether

The stable nature of USDT means it isn’t well suited to trading, although its fluctuations against the pound mean it’s possible to make a modest profit by trading a GBP/USDT pair. Crypto traders are more likely to use USDT as a base currency to trade against other coins, as it is very quick and easy to swap between USDT and other cryptocurrencies.

Tether Savings Accounts

The simplest way to make a guaranteed profit on your USDT holdings is to put them into a savings account to earn interest. Binance and OKX provide USDT savings accounts with a yearly interest rate of 10%, while you can earn up to 12% with Nexo .

Choosing a Tether Wallet

Once you have purchased your Tether, you will need to decide where to store it. There are a number of options available to suit different needs.

Tether Software Wallets

• Web wallet: Accessible through any browser, all you need is an internet connection to send and receive your USDT. All the platforms reviewed on this page provide free web wallets where you can store your USDT.

• Desktop wallet: This is a wallet that you download and run on your computer, with your private keys being stored on your hard drive. ERC-20 USDT can be stored in any desktop wallet that supports Ethereum, such as Atomic or Exodus.

• Mobile wallet: This type of wallet takes the form of an app that can be downloaded onto your phone. MetaMask is one of the most popular mobile wallets that support USDT.

Physical and Hardware Wallets

• Hardware wallet: A hardware wallet is a physical device, often a USB, and is the most secure place to store USDT. Hardware wallets that support Tether include Trezor, BitBox, and Ledger.

• Paper wallet: You can create a paper Tether wallet by using a private key generator to generate a public and private key. They will be in the form of strings of characters and/or QR codes which you can print or write down. However, paper wallets aren’t a secure way to store USDT.

Wallet Combinations

There are also Tether storage solutions that combine more than one of the wallet types listed above. For example, if you store your Tether on a Ledger hardware device, you can also download the Ledger Live app to easily manage your USDT. You could also keep some USDT on an exchange for trading while keeping the rest in a hardware wallet for long-term storage.

Should I Buy Tether Now? - Things to Consider Before Buying Tether in the UK

The things covered in the section on whether Tether is a good investment are factors you’ll likely want to consider before buying USDT, but there are some other practical factors that also warrant consideration.

Tether Fees & Regulations

There are network fees for making USDT transactions and the amount depends on the blockchain used—for example, the fees are higher on Ethereum than Solana. However, as many platforms like Binance charge a fixed fee for trades, you don’t need to worry about network fees when making purchases and sales.

There are other fees that your platform will charge. For example, you will likely have to pay fees on deposits and/or withdrawals, which may differ depending on the payment method used. Account management, inactivity, and overnight fees may also be charged by some platforms.

All cryptocurrencies are unregulated in the UK, so USDT holders are unlikely to have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme, should they be hacked or scammed. This is why it is important to keep your USDT as safe as possible and only buy and trade it on regulated platforms.

When to Buy Tether?

As the price of USDT is kept stable, when you buy isn’t particularly important. However, when buying with pounds, USDT will be cheaper when the GBP/USD exchange rate is higher.

Tether Price

USDT is designed to always be worth $1, although there are tiny fluctuations in its price in dollars, and it has occasionally deviated significantly from its peg in response to changes in demand. The value of USDT in pounds varies with the GBP/USD exchange rate.

Buying Tether Safely in the UK

A regulated platform with a strong reputation is the safest way to buy USDT, as they usually have the most stringent security measures, as well as better features and support.

In the UK, the safest platforms are those licensed by the FCA. Security features to look for include offline storage, insurance, address whitelisting, and two-factor authentication.

You should act responsibly when you buy cryptocurrency by never investing more than you can afford to lose. You should also keep your investment somewhere safe, like a hardware wallet. Storing your seed phrase safely is important in case you ever need to recover access to your wallet.

Those who are crypto investing in the UK s are a target for hackers and scammers, so always be vigilant. You should check the provenance of emails purporting to be from your platform or wallet provider, and never share your password or private key with anyone.

Buying Tether anonymously in the UK

UK regulations require crypto platforms to verify the identities of their users in a process called “Know Your Customer” (KYC). This makes it difficult to buy USDT anonymously as most platforms require contact details and proof of identity, like a passport.

You would therefore need to use an unregulated platform to buy USDT anonymously in the UK. This is possible on some peer-to-peer (P2P) marketplaces, like Paxful, where you could use a fake email address to set up an account. Paxful enables users to buy USDT from some sellers without completing verification.

Another type of unregulated platform you could use is decentralised exchanges (DEXs), as they don’t require any personal information—just a wallet. DEXs only enable you to swap between different cryptocurrencies, though, so you would first need to acquire another cryptocurrency to swap for USDT.

Using an unregulated platform could put you at risk of being scammed, and they are also harder to use. For these reasons, it is simpler and safer to spend a few minutes verifying your identity so you can buy USDT on a regulated platform, which is perfectly legal in the UK.

Best Ways to Buy – a Comparison between Centralised Exchanges & Decentralised Exchanges

Centralised Exchanges

All the platforms in this guide are centralised, meaning they are operated by a company. Many platforms have an order book, where buy orders are matched with sell orders to facilitate trades. The platform will charge you a fee for this service.

Beginners appreciate centralised exchanges (CEXs) as they provide a better user experience, are usually easy to navigate, and often provide customer support and educational resources. They’re popular with experienced traders as well, as many platforms provide more advanced features, such as a variety of order types and tools for technical analysis.

Decentralised Exchanges

Conversely, there is no company or authority in charge of a decentralised exchange (DEX), as it operates through smart contracts on the blockchain. Instead of facilitating trades through an intermediary, DEXs tend to use liquidity pools.

These are pools of crypto assets that trades are made against. People are incentivised to provide assets for these pools as they will receive exchange fees in return.

DEXs are popular with people who want to retain full custody of their assets and trade anonymously. However, the network fees can be expensive on DEXs, and they don’t provide many features. What’s more, you will need to buy another cryptocurrency first to swap for USDT as DEXs don’t tend to have fiat on/off ramps

Selling Tether

The time at which you sell your USDT isn’t that important as its price is pretty stable, but you will get more bang for your buck when the US dollar is performing strongly relative to GBP.

On most platforms, the selling process is pretty straightforward and doesn’t differ much from the buying process. You can use the simple Sell Crypto feature if your platform has one, or search for the GBP/USDT trading pair.

You may need to create a sell order and you could be given the choice between a market sell order, which involves selling immediately at the current price, or a limit sell order, which lets you make a sale once USDT reaches a certain price in GBP.

Final Thoughts

There is clearly a lot to consider when it comes to where, when, and how to purchase Tether in the UK, but the most important thing is to choose the best platform for you.

We believe Binance is the top platform for buying USDT in the UK due to its wide range of features to suit traders of all abilities, and the earning opportunities it provides. It’s quick and easy to set up an account and make a deposit with Binance—after that, you can purchase USDT in a matter of seconds.

Methodology - How we picked the best platform to buy Tether

To provide information you can trust, we conduct extensive research and use quality control processes. We want to enable you to make informed decisions about investing, which is why we rigorously test all the platforms we review.

When testing a platform, we look at things such as the account creation and deposit processes, the assets and trading types offered, user experience, fees, features, regulation, educational content, and customer service.