How Much Does it Cost to Send USDT? (2024)

In the world of cryptocurrencies, USDT, otherwise known as Tether, has unquestionably become one of the most sought-after and well-known stablecoins today. Its stability in price and familiarity as a unit of account makes it a popular choice for a wide range of use cases.

Whether it’s used for peer-to-peer transactions, cross-border payments, or as collateral in decentralized lending and borrowing, USDT is widely known for its flexibility and usefulness. However, every time USDT is transferred to different exchanges, platforms, or wallets, it incurs a fee. Therefore, it’s important to understand how much it costs to send USDT and why there is a fee involved. The fee is usually paid by the sender, but sometimes it can be borne by the receiver or shared between the two parties.

Today, we will discuss the cost of sending USDT and the reasons behind the fee charged. Moreover, we will also discuss whether or not it is possible to reduce the USDT transaction fee when sending USTD.

What is Tether (USTD)?

As already mentioned above, Tether (USDT) has become more popular in recent years due to its stability and reliability. As a stablecoin, it is pegged to the U.S. dollar and claims to be backed 100% by Tether’s reserves, which provides a sense of security to investors.

The fact that Tether is owned by iFinex, the company behind the BitFinex crypto exchange, also adds to its credibility and appeal. Despite some controversies surrounding its reserves and transparency, Tether remains a trusted option among many crypto enthusiasts.

Tether was launched as RealCoin in 2014 and has come a long way since its rebranding in November of the same year. Originally based on the Bitcoin blockchain, Tether now supports several blockchain protocols, including Bitcoin’s Omni and Liquid, Ethereum, TRON, EOS, Algorand, Solana, and Bitcoin Cash (SLP).

As of April 2023, it holds the position of being the third-largest cryptocurrency, with a massive market capitalization of almost $80 billion. The stablecoin has gained acceptance among crypto users due to its status as one of the major stable coins in circulation today. Its high liquidity and stability have made it a favorite among traders and investors alike. Tether’s USDT has also seized a significant share of trading volume in 2022, accounting for most of the trading activity on different exchanges after Bitcoin.

Factors Influencing the Cost of Sending USDT

The cost of sending USDT (Tether) can be influenced by various factors. The amount of USDT that you want to send will determine the cost of the transaction. Generally speaking, the cost of sending USDT ranges between 0.29 and 25 USDT. This is because the total transaction fee is the sum of two elements, i.e., the network fees and exchange fees.

Network Fees

As the name suggests, network fees refer to the charges imposed by the blockchain network to process a transaction. These charges are paid to miners who perform the crucial task of verifying transactions and adding them to the blockchain. The calculation of network fees is usually based on the size of the transaction in bytes and the current congestion level of the network. In other words, if the network is congested and there are many transactions in the queue, the fees will naturally be higher.

Additionally, the type of blockchain used can also have a significant impact on network fees. For instance, in our experience, we have found that the ERC-20 Ethereum blockchain has some of the highest network fees in comparison to other blockchains. Therefore, before choosing a blockchain service provider, it is imperative to consider the network fees involved and avoid any unwanted surprises later.

Exchange Fees

Exchange fees are a common revenue stream for crypto exchanges that process USDT transactions, such as Coinbase, Binance, and Kraken. These platforms charge users for the convenience of using their platform to buy, sell, or trade USDT.

However, while working with different platforms, we have noticed that exchange fees can vary significantly between exchanges. It’s vital to investigate and compare these costs before deciding on a specific exchange to ensure that you’re getting the best bargain.

By doing so, you can minimize your costs and maximize your profits when transacting in USDT on crypto exchanges.

Average USDT Sending Fees

At the time of writing this post, the average cost of sending USDT is roughly 5.46 USDT as a whole. However, it’s important to analyze how this average cost spreads out between different exchanges. By doing so, we can identify which platforms offer the most cost-effective options for sending USDT and ultimately save on fees.

Binance

If you are looking for a reliable and affordable place to transfer USDT, Binance is the go-to option for many crypto users. Due to its low transfer costs, which make it a desirable option for sending USDT, Binance is a personal preference of many users. With a fee of only 0.29 USDT per transaction on the BEP-20 blockchain, Binance offers one of the lowest transfer fees across various blockchain networks.

Binance also provides SOL and TRC-20 blockchain transactions for 0.8 USDT. Though Ethereum ERC-20 blockchain payments have the highest cost on Binance at 3.2 USDT, it still provides a competitive fee structure compared to other platforms in the market. Overall, Binance proves to be a consistent option for anyone looking to send USDT.

Coinbase

When it comes to crypto exchanges, Coinbase stands out as a unique case due to its favorable transaction fee structure. Unlike other platforms that have fixed fees, Coinbase charges a 1% transaction fee that scales with the amount of the transaction. This means that the more you transfer, the higher the transaction fee you’ll have to pay.

For instance, if you send 1,000 USDT to another account, you’ll have to pay a 10 USDT transaction fee plus network fees. While this may seem like a disadvantage, it ensures that Coinbase users only pay for what they use and can avoid incurring high fees for smaller transactions.

Kraken

Choosing a mid-range option like Kraken is a practical and wise decision for those who are looking for a balance between cost-effectiveness and dependability. In addition to the TRC-20 fee of 2.5 USDT and ERC-20 charge of 3.5 USDT being much less than those of Binance, Kraken also offers robust security measures and a user-friendly interface that makes it a great choice for the majority of users.

KuCoin

When it comes to KuCoin, we have mixed opinions. On one hand, the platform offers an attractive 1 USDT transfer fee for TRC-20 and SOL blockchain transactions. This is a reasonable amount that appeals to many traders looking for cost-effective options. On the other hand, the payment is different for ERC-20 blockchain transactions, as the platform charges a whopping 25 USDT transfer fee.

This puts KuCoin out of range for most retail crypto traders who are looking for better and more affordable options. Despite this one drawback, KuCoin remains a popular exchange with unique features that attract many traders.

Minimizing USTD Transaction Fees

Minimizing transaction fees is crucial for anyone who regularly transfers USDT across different cryptocurrency exchanges. Fortunately, there are several strategies to reduce these transfer charges, depending on the platform used.

One of the best options is to choose a network that offers lower transaction rates, such as BEP-20 or TRC-20. Additionally, using an exchange that does not charge additional withdrawal fees can also be a good decision. Some platforms also run promotions that reduce withdrawal costs for USDT and other currencies.

Choose an Alternative Network with Lower Fees

If you’re an investor looking to save on transaction costs, consider switching to a different network. One way to do this is by altering the network in your crypto wallet. For instance, Ethereum-based wallets usually incur the highest transaction fees for USDT transactions, making them less attractive for cost-conscious investors.

However, if you switch to a wallet that works on the Binance Chain (BSC), Tron (TRC-20), or Solana network, you can benefit from much lower transfer fees of around 1 USDT.

Use a Different Crypto Exchange with Reduced Withdrawal Costs

Investors who are looking for ways to lower their USDT trading fees can opt for a different cryptocurrency exchange altogether. While some exchanges may charge higher fees, many commission-free trading applications can help you reduce the overall trading fee for sending USDT.

Make Full Use of Cryptocurrency Promos and Bonuses

Certain exchanges use attractive offers to entice new customers to join their platform. These incentives may include deposit bonuses and lower trading fees, which can help to counterbalance the withdrawal expenses. Additionally, some exchanges may advertise a temporary promotion wherein there are no withdrawal fees charged for transferring USDT.

Carefully Consider Charges

When sending USDT, the fees charged by different exchanges can vary significantly.

While some may charge as little as 0.29 USDT (e.g., Binance), others may charge as much as 25 USDT (e.g., KuCoin).

Although these fees may seem insignificant for small transfers, they can add up over time.

Therefore, it is important to carefully consider fees and charges when operating in the cryptocurrency market.