Cryptocurrencies have gained a lot of popularity in recent years. However, investments in digital assets are fraught with risks due to their high volatility. Market participants are looking for reliable and secure ways to store and exchange tokens. In this context, USDT TRC-20 on Binance has become one of the most preferred options. The main purpose of the stablecoin is to protect investments from sharp price spikes.
The emergence of USDT
The cryptocurrency was launched in 2014 and was originally called Realcoin. The project was the first practical realization of the idea of combining traditional financial markets and the rapidly developing blockchain technology. Already in November 2014, the asset was renamed Tether.
Bitfinex is the first cryptocurrency exchange where the coin appeared. The platform launched trading in 2015.
Initially, USDT was a stablecoin pegged to the dollar at a 1:1 ratio. However, in 2019, it was revealed that the cryptocurrency is backed not only by fiat money, but also by loans from Tether Limited-affiliated entities. Despite these controversies, USDT remains one of the most popular stable coins.
The asset was launched on the Bitcoin blockchain using the Omni Layer protocol. In September 2017, the stablecoin appeared on Ethereum, in 2019 – on Tron as a TRC-20 token. Even later, the coin was launched on other networks.
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Tether is the largest stablecoin and the third largest cryptocurrency with a market capitalization of over $83 billion.
USDT TRC-20 Description
Every blockchain has a token standard. This is a single interface that makes coins compatible with the network’s smart contracts. It allows developers to create and deploy their own cryptocurrencies, and traders and investors to store, transfer and exchange them.
In Tron, Tether and other tokens are programmed according to the TRC-20 standard and issued with the network in mind. This allows ecosystem members to exchange stablecoin without the need to use trading platforms or payment services.
To work with USDT in TRC-20 format, investors must have a Tron-compatible wallet.
Differences from ERC-20
The protocols operate on different blockchains. The ERC-20 standard is based on Ethereum, while TRC-20 is based on Tron. This is the main difference. The others are listed in the table.
| Condition | ERC-20 | TRC-20 |
|---|---|---|
Using USDT TRC-20 on Binance
The popular cryptocurrency exchange supports Tether transactions on Tron, Ethereum, BNB Smart Chain, Polygon, and other networks. Here are the main ways to use USDT TRC-20 on Binance:
- Trading. Traders use Tether to buy cryptocurrencies on the platform. You can also trade USDT paired with other stablecoins such as BUSD or USDC.
- Storage. Investors looking to protect capital from market volatility convert their cryptocurrency into stablecoins and hold them on an exchange or in a wallet.
- Deposit and Withdrawal. Binance supports funding an account in Tether. Users can withdraw stablecoin to another crypto exchange or wallet.
- Transfers. Investors use the coin to send to other accounts or addresses of friends and partners. Cryptocurrency is also suitable for payment for goods and services.
Binance wallet support
The exchange has 2 services for storing cryptocurrency – Binance Chain Wallet and DeFi Wallet. The first one works with USDT standards ERC-20, BEP-20 and BEP-2, the second one also supports the coin in the Polygon network.
Only the exchange wallet allows to store Tether TRC-20 on Binance. At the same time tokens are interchangeable and can be used in all services of the site, including trading, farming, Simple Earn. For example, if an investor deposits 1000 USDT in ERC-20 and 300 in TRC-20, the deposit will reflect one asset. This means that a balance of 1300 coins will appear in the user’s wallet. Traders will be able to trade on spot or on margin no matter what type of stablecoin they have in their account.
Buying and selling on the exchange
Trading on the Binance website using USDT is one of the most popular ways to participate in the cryptocurrency market. Most of the assets on the platform are available paired with Tether. This provides traders with a convenient and fast way to convert funds into stablecoins. This way, users can adapt to sudden changes in the market and manage their investments more efficiently.
Buying TRX for commission
Tron cryptocurrency is a native blockchain token. The TRX asset plays an important role in the network as it is used to pay commissions on transactions.
On exchanges, fees are charged in the token that is used for the transfer. However, in order to manage a stablecoin on a non-custodial wallet, you need to pre-fund your account with TRX cryptocurrency. This can be done on the Binance website. The instructions are as follows:
- Open the “Trading” section and go to the “Spot” tab.
- In the search bar, type TRX and select a pair with USDT.
- Specify the purchase amount in the trading panel.
- Confirm the trade.
When the order is executed, the cryptocurrency will automatically appear in the wallet of the exchange. It can be sent to another address and used for transactions in the Tron network.
Exchange for fiat
Investors use stablecoins to protect their capital from market volatility. For the same purpose, exchange customers exchange Tether for fiat. The instructions are as follows:
- Open the “Trading” section and go to the “Conversion” tab.
- Set the direction of the exchange. In the upper line specify the cryptocurrency, in the lower line – fiat money (RUB, EUR or others).
- Study the details of the transaction and confirm the transaction.
The exchange of assets takes a few seconds. Fiat money will automatically appear on the crypto exchange wallet.
Users can sell stablecoin and receive payment to a bank card. To do this, you need to follow a few steps:
- Click on “Buy Cryptocurrency” in the top horizontal menu of the exchange.
- Go to the “Sell” tab.
- In the upper window, set USDT, in the lower window – RUB.
- Specify the amount. The minimum limit is 1200 RUB.
- Click on “Continue”.
- Add a bank card.
- Complete the transaction.
Also available on the site is the sale of cryptocurrency through a P2P platform. This method allows users to carry out exchanges without third parties.
In August 2023, the Binance exchange stopped supporting Tinkoff and Sberbank. However, some participants of the P2P-platform still conduct transactions using these cards. It is worth being cautious about such offers, as they violate the rules of the exchange.
If a user has problems while selling tokens to Tinkoff or Sberbank cards, it will be difficult for them to provide proof or get support from the platform.
Transferring USDT to another exchange from Binance
Customers of the trading platform can withdraw stablecoin in the Tron network. In this case, it does not matter which blockchain was used to deposit Tether. To make a transfer of funds from Binance to another exchange, you need to perform the following steps:
- Open the “Wallet” page and enter the “Main Account” section.
- Find USDT in the list of available assets and click on the 3 horizontal dots opposite the name of the cryptocurrency.
- Click on “Withdraw” in the menu that opens.
- Get an address on another exchange. When requesting a wallet, the Tron network (TRC-20) should be selected.
- In Binance, specify the blockchain for the withdrawal and paste the previously copied details.
- Write the amount to be transferred.
- Click on “Withdraw”.
After the 7th step, you need to wait for transaction confirmation and check the receipt of funds on the exchange. Usually it takes a few minutes.
Frequent questions
📣 Is it possible to send Tether from TRC-20 to ERC-20?
It is not possible to make a direct transfer of assets from one blockchain to another. You can use a cryptocurrency exchange or bridges to do this.
📌 On which platforms does the stable coin work?
⚡ In which wallets can you store Tether in TRC20?
✨ How long does it take to deposit steblecoin to Binance?
A single network confirmation is enough to deposit to your account. The minimum deposit amount is from 0.01 USDT.
💳 Where can I see the transaction status?
In Tronscan block browser.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
