Question about USDT coins (On Binance, but they have it elsewhere too)

[alcy]

I just discovered last nite that on binance when all markets crashing like lately, you can safely store your money in "their" USDT coins.. and then convert 1usdt=1usd$ and continue to buy when prices lower.. this is better imo than transfer btc in and out of there.. just to cashout.. pay transfer fees etc..

is this about right? any catches to keep in mind???????

 

[Pierre Barnard]

Referring to tether?

 

[alcy]

yes sir. tether.

 

[Radu054]

I was thinking the same thing with tether when I tried to ride the wave. A lot less work than switching to btc-> usd and then usd->btc->your coin.

Anyway, I decided to not sell anything during the dip

 

[alcy]

I was thinking the same thing with tether when I tried to ride the wave. A lot less work than switching to btc-> usd and then usd->btc->your coin.

Anyway, I decided to not sell anything during the dip

ok so u took a chance

but if say you own 1btc
and you see it go down over few days (usd$ Value)...
then u can sell for say 10k usdt coins
then when you see it dip to say 5k.. you can use your usdt to buy 2btc
whereas if you just watch your 1btc go down in value and not cash out.. and then goes backup again (assuming it does like it did this time).. then you'll still only have the 1btc in the end.. worth 10k again..

so im thinking with usdt you can do all this right there on binance.. without transfer fees and wasted time.. going to coinbase.. banks.. etc..

I know tether (usdt) had theft last year around 30million usdt.... and they shut down their wallet.. but I think when you store usdt like this on binance.. its not quite linked to tether wallets... so I guess the only way to loose your usdt balance is when binance gets hacked and evry other coin is stolen too

im kinda new to all this.. so I apologize if math is wrong

 

[Radu054]

You’re right in your assumptions as far as I know.

The only drawback might be tether going down in price, but I don’t think that will happen. So I think exchanging your crypto to tether is a safe thing during the dips

 

[alcy]

You’re right in your assumptions as far as I know.

The only drawback might be tether going down in price, but I don’t think that will happen.

hmmmmmmmm isn't usdt guaranteed 1:1 usd$ ratio?
it says so on their site.

I mean thats the whole point of usdt.

if it was not guaranteed 1:1 ratio, it may as well just be some other coin made for other purposes.

 

[Radu054]

It should be. It is meant to be a stable coin

 

[alcy]

not to mention that if in case of mny example above.. if say btc never does recover.. and you did not trade for usdt when it was starting to fall.. you will not have 10k usdt at the end of it..

that being said, lets say bitcoin goes to zero (just example).. and you have your 10k usdt sittin on binance.. and only usable to buy eth/btc pairings.. and ether is zero too.. thne how do you cashout on your usdt?? do you transfer it otu somewhere? but there are no wallets.
hmmmmmmmmm

anyone have some usdt experience here?

 

[Dwrobleski]

Another point about USDT's.
I've been using Binance for about 4 days, and I have LTC/BTC and ETH/BTC. I have ended up with amounts in these that are too small to make a SELL bid. The sell BTC minimum is 0.002, and the sell ETH minimum is 0.02. But I can go to the USDT tab, and see the LTC/USDT amount of my account is $15.xx USD. Can I sell it to USDT, and do the same with my ETH/USDT worth about $8 USD, to make a USDT account worth $23.xx USD? Then use that amount to sell into the BTC account so I can make a larger buy?

 

[alcy]

good point
it should work!
you'll pay the usual trade fee. other than this its good idea imo

 

[Keith]

You can convert btc to usd at Gemini and Coinbase. As the market fluctuates your money is safe in, more or less, a bank account. I do it frequently.

 

[alcy]

You can convert btc to usd at Gemini and Coinbase. As the market fluctuates your money is safe in, more or less, a bank account. I do it frequently.

yes but the whole point of using usdt and its design purpose is to easily store fiat equivalent on exchange itself.. without moving it around.. and out.. with the huge btc transfer fees etc..

of course if you plan to cash out for good, then move to coinbase and then bank.. otherwise if you plan to reinvest when market is backup again. I think usdt is perfect solution for it. in fact, it was designed for this reason

 

[Keith]

yes but the whole point of using usdt and its design purpose is to easily store fiat equivalent on exchange itself.. without moving it around.. and out.. with the huge btc transfer fees etc..

of course if you plan to cash out for good, then move to coinbase and then bank.. otherwise if you plan to reinvest when market is backup again. I think usdt is perfect solution for it. in fact, it was designed for this reason

Yes. You can sell btc and hold usd at the exchanges - gemini, Coinbase...no need to send in and out.

 

[alcy]

Yes. You can sell btc and hold usd at the exchanges - gemini, Coinbase...no need to send in and out.

oh sorry.. I thought you meant to go to coinbase as final step before fiat withdrawl.. cause most people do not really see coinbase as exchange... which is why binance has so many clients.. not sure about gemini... do not know it.

but from what I read so far, anything that lets you store fiat on it, is not considered exchange.. at least not the kind most people are intereated in using. which is precisely why exchanges added usdt.. imo

 

[Keith]

oh sorry.. I thought you meant to go to coinbase as final step before fiat withdrawl.. cause most people do not really see coinbase as exchange... which is why binance has so many clients.. not sure about gemini... do not know it.

but from what I read so far, anything that lets you store fiat on it, is not considered exchange.. at least not the kind most people are intereated in using. which is precisely why exchanges added usdt.. imo

Gemini is the best around if you’re US based. You can wire unlimited amounts to the bank but you can also buy btc, eth, litecoin. It’s a necessity if you hold large amounts of crypto currency.

 

[alcy]

Gemini is the best around if you’re US based. You can wire unlimited amounts to the bank but you can also buy btc, eth, litecoin. It’s a necessity if you hold large amounts of crypto currency.

thanks. I'll look into it.
I am more beginner than you in this, but I read a lot and learn a lot daily..

and honestly, up to this point, I was under impression that exchanges, in the sense that people use them or what they can do for them, are not something like coinbase.. and therefore do not allow storing fiat on them directly.. or buying cryptos with fiat.. hence like I said the idea of using USDT on exchnages.

but if you say this is wrong, and there are exceptions to this rule, like gemini.. well.. I guess I'll just keep reading then

ty

 

[Keith]

thanks. I'll look into it.
I am more beginner than you in this, but I read a lot and learn a lot daily..

and honestly, up to this point, I was under impression that exchanges, in the sense that people use them or what they can do for them, are not something like coinbase.. and therefore do not allow storing fiat on them directly.. or buying cryptos with fiat.. hence like I said the idea of using USDT on exchnages.

but if you say this is wrong, and there are exceptions to this rule, like gemini.. well.. I guess I'll just keep reading then

ty

You can safely hold usd on Gemini to protect your money against market fluctuation. It’s a beautiful thing!

 

[alcy]

You can safely hold usd on Gemini to protect your money against market fluctuation. It’s a beautiful thing!

a quick read tells me it has limited altcoins.. so its maybe a lot like coinbase..
and there is reason why people use binance.. or other exchanges.

so for now, looks like its still bianance.. for biggest choice of coins.. and first going through coinbase to exchange bitcoin... which still makes usdt a nice alternative to store in fiat like format on exchange, while awaiting markets to pickup.

but now that you mention it.. and maybe someone knows.. or you know.. why is it exactly that a place like bianance does not allow fiat to crypto trading???

thanks for sharing this

cheers

 

[Keith]

a quick read tells me it has limited altcoins.. so its maybe a lot like coinbase..
and there is reason why people use binance.. or other exchanges.

so for now, looks like its still bianance.. for biggest choice of coins.. and first going through coinbase to exchange bitcoin... which still makes usdt a nice alternative to store in fiat like format on exchange, while awaiting markets to pickup.

but now that you mention it.. and maybe someone knows.. or you know.. why is it exactly that a place like bianance does not allow fiat to crypto trading???

thanks for sharing this

cheers

Because btc is the default between currencies. When you sell anything it converts to btc. This will change in the future and will cripple btc imo.

 

[alcy]

Because btc is the default between currencies. When you sell anything it converts to btc. This will change in the future and will cripple btc imo.

binance also uses ltc and eth for base if you prefer.
not sure about other exchages. I only use bianance.

are you saying the new standard will be ether..... or what?

 

[Keith]

binance also uses ltc and eth for base if you prefer.
not sure about other exchages. I only use bianance.

are you saying the new standard will be ether..... or what?

Eventually you will be able to sell something and convert it to any other currency you want, bypassing btc. You will also be able to buy anything with anything. That’s when btc falls imo.

 

[Dwrobleski]

Another point about USDT's.
I've been using Binance for about 4 days, and I have LTC/BTC and ETH/BTC. I have ended up with amounts in these that are too small to make a SELL bid. The sell BTC minimum is 0.002, and the sell ETH minimum is 0.02. But I can go to the USDT tab, and see the LTC/USDT amount of my account is $15.xx USD. Can I sell it to USDT, and do the same with my ETH/USDT worth about $8 USD, to make a USDT account worth $23.xx USD? Then use that amount to sell into the BTC account so I can make a larger buy?

So I tried the above, and got the error that says 'minimum sell order must be $20'. So right now, I'm stuck with 2 coins in Binance that are below the min sell requirements. I need to wait until they get to $20, or throw more money from my CC into them.
Dave...

 

[Furquan]

Because btc is the default between currencies. When you sell anything it converts to btc. This will change in the future and will cripple btc imo.

But if we use Binance we have large choice to convert over any listed coin. At the moment, we can convert any coin to BNB, BTC, ETH & we can convert BTC, ETH, BNB, LTC, BCC (BCH) to USDT.

 

[Furquan]

So I tried the above, and got the error that says 'minimum sell order must be $20'. So right now, I'm stuck with 2 coins in Binance that are below the min sell requirements. I need to wait until they get to $20, or throw more money from my CC into them.
Dave...

If you would like to buy NEO then you can convert your USDT to NEO.