Cryptocurrency is making a huge splash in the currency world. With features like decentralisation and anonymity, consumers are taking up cryptocurrency in droves. So much so that businesses have started taking crypto as payment. One of the currencies on the market is USDT, and although it is not as popular as other currencies like Bitcoin, it does have unique features and benefits that make it attractive to the masses.
What is USDT?
USDT or Tether is the largest Stablecoin. Crypto traders use stablecoins like Tether to make transfers between cryptos or move their investments into or out of fiat currencies.
The value of USDT is pegged to the US dollar, which means that Tether remains unaffected by the volatility that drastically affects other cryptos like Bitcoin.
The purpose of Tether is to provide a stable price point at all times and is considered the internet’s Digital Dollar.
The coin is heavily used by millions of blockchain users each day for trading, hedging and transacting on the various blockchain networks. With Tether, you don’t need a trusted third-party intermediary.
Tether has large reserves and doesn’t suffer from market risks like Black Swan Events. It enjoys the same luxuries as another cryptocurrency token on peer-to-peer trading and PoW or PoS security, making it attractive to hedge traders and users.
What is a Stablecoin?
Stablecoins are a token that provides a low-volatility digital asset that maintains a steady valuation. To keep the token steady, it is usually attached to the value of stable assets like Gold, the US dollar or other major fiat currencies. That means the stablecoins attempt to maintain the same value as the asset it is pegged to.
USDT is the largest Stablecoin currently. It accounts for 53% of the total Stablecoin market capitalisation.
The Stablecoin provides reliable liquidity to get in and out of cryptocurrency trades without facing unpredictable losses from volatile price changes.
How Does USDT Work?
Each USDT issued is backed by one US dollar worth of assets. All the Tether issued was initially on the Bitcoin blockchain via the Omni Layer protocol. This has since changed. It can now be issued on any chain that Tether currently supports.
Once Tether has been issued, it can be used the same way as any other currency or token on the chain it has been issued on. Currently, Tether supper Bitcoin, EOS, Ethereum, Tron, OMG and Algorand blockchains.
How Can You Convert USDT to GBP on Binance?
Like other cryptos, when withdrawing to your bank account, you need to convert your Tether to GBP and then proceed to withdraw. Binance is the most common platform and one of the easiest to use when converting your USDT to GBP. The process you follow is relatively simple and straightforward.
Binance supports over 60 fiat currencies, including the largest ones in the world. This makes it possible for crypto traders and hedgers to withdraw their stablecoins like Tether in their preferred currency. In this case, the preferred currency is GBP.
Step 1 – Go to the “Fiat and Spot” page
Log in to your Binance account, head over to the wallet tab, and hover over it. A drop-down list will appear. Clear on the ‘Fiat and Spot’ tab.
You can also hover over the ‘Wallet’ link and click on ‘Overview’ instead of clicking on the ‘Fiat and Spot’ link.
This opens the overview page where you can view all your balances across the various Binance products, including futures, margin, and fiat and spot accounts. Click on the ‘Fiat and Spot’ option.
Step 2: Go to the crypto withdrawal page
Once you’re at the fiat withdrawal page after following the directions in Step 1, find the withdraw button. It’s just under the navigation bar.
You can also find the withdraw option by scrolling down the same page and clicking on the withdraw buttons aligned with the fiat currency you want to withdraw. This is a shorter route and is preferred. Find GBP and click on the withdraw button beside it.
Once you’re at the withdrawal page, you will go directly to the fiat withdrawal page. Next, click on the ‘Crypto’ tab to switch to the crypto withdrawal page.
Step 3: Select a coin and transfer the network
In this step, you will select the coin you want to withdraw, the withdrawal address and the transfer network. The coin, in this case, is USDT.
Transfer costs will vary between networks, and you’re free to use more than one transfer network. Add a new address in the recipient address field or choose one from the address book.
If you’re withdrawing to a new address, you can add it from the address management page by clicking the “Add Withdrawal Address Button.”
Finally, select USDT as the coin, fill in the wallet address below it, and select the correct transfer network.
You will need to select whether the wallet address is private or belongs to an exchange. If it belongs to the latter, choose the exchange you want to withdraw your assets.
Confirm everything is correct, then click save. Binance will prompt you to authorise the addition via 2FA.
You will return to the crypto withdrawal page to reselect the coin to withdraw, the amount and the newly added wallet address and transfer network.
Step 4: Confirm the Transaction
After confirming all the details, click on the submit button. You will be prompted to confirm the transaction and authorise it through 2FA.
Click submit, and you’re done. You will receive your funds as selected in the GBP since it was your preferred fiat currency.
That is how you convert USDT to GBP on Binance. After the conversion, the withdrawn amount in GBP remains in your Binance account. You must follow the fiat withdrawal process to withdraw the fiat currency into your bank account.
