What is USDT (Tether)? A simple guide for India
USDT, also called Tether, is the most widely used stablecoin: a crypto token designed to stay worth one US dollar. Here is how it works, and what to know before you buy any.
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USDT in one minute
USDT is a digital token issued by a company called Tether. Each token is designed to be worth 1 US dollar, and Tether says every USDT is backed by reserves of the same value, mostly short-term US government debt (Treasury bills). It publishes regular reports on those reserves.
USDT runs on public blockchains such as Tron, Ethereum and BNB Smart Chain, so it can be sent to anyone at any hour, usually within minutes.
Why people in India use it
- To hold value in dollars. USDT follows the dollar rather than the rupee.
- To trade other crypto. Most crypto is priced in USDT on exchanges, so it's the usual starting point.
- To move value quickly. A transfer settles in minutes, even on weekends and bank holidays.
How USDT differs from rupees in a bank
- It isn't a bank deposit, so there's no deposit insurance, and it isn't legal tender in India.
- Its rupee price moves with the dollar and with demand for USDT in India. See why the USDT rate differs from the dollar rate.
- Its $1 value depends on Tether managing its reserves. USDT has briefly slipped below $1 during market panics, for example in May 2022, before recovering.
- If you lose access to your wallet, or send USDT to the wrong address, there is usually no bank that can reverse it.
Is USDT legal in India?
Owning, buying and selling crypto, including USDT, is not banned in India. It isn't legal tender, and income from crypto is taxed under special rules for virtual digital assets. Tax rules change and depend on your situation, so speak to a chartered accountant about yours. This is general information, not legal or tax advice.
TRC20, BEP20, ERC20: one USDT, several networks
When you buy or send USDT, you pick a network. The token is the same on each, but the networks are separate, so the sender and the receiver must use the same one. Our guide to TRC20 vs BEP20 vs ERC20 explains the differences and how to avoid sending on the wrong one.
How to buy or sell USDT for rupees
You can use a crypto exchange, or a P2P desk like ours, where you trade with our team in a private ticket on Discord. Today you can buy USDT from us at ₹106.00 and sell it to us at ₹97.00 per USDT, with no commission or extra fees.
Step by step: how to buy USDT with UPI and how to sell USDT for INR.
Keeping your USDT safe
- Keep your wallet's recovery phrase (seed phrase) offline and private. Never share it with anyone, including anyone claiming to be support.
- Copy and paste wallet addresses, and check them before you send.
- Trade only with people who verify identity, and pay only from your own account. Here's why that protects your bank account.