Summary: Coinbase does not directly offer Tether (USDT) purchases, focusing instead on promoting USDC as it is a stablecoin backed by the exchange. That said, USDT can still be acquired through Coinbase Wallet using decentralized exchanges, but this is a more complex and riskier route.
As a simpler and more secure alternative, Kraken allows USDT purchases with competitive fees and accepts bank transfers from over 100 countries. This regulated platform is known for its narrow spreads and low fees, starting as low as 0.1%, for buying USDT or any of its extensive range of over 200 cryptocurrencies.
- Trade and stake over 200 crypto assets (including Tether USDT) with industry-leading fees and tight spreads.
- Available in 100+ countries and regulated by top authorities like the FCA, FinCEN and ASIC.
- Founded in 2011 and trusted by over 9 million investors.
Can I Buy Tether with Coinbase?
No, Coinbase prioritizes the promotion of its own USDC as a regulated stablecoin and does not offer direct purchasing of Tether through its platform. However, USDT can be purchased through the Coinbase Wallet using decentralized exchanges. This method is more complex and riskier than standard transactions. Users must be familiar with the Coinbase Wallet and be comfortable interacting with decentralized exchange interfaces. This is why we recommend using a regulated and safe centralized investment platform.
How to Buy USDT with Coinbase Alternative
As an alternative to buying Tether directly on Coinbase, you can use Kraken. This regulated platform allows for secure USDT transactions and accepts transfers from bank accounts in over 100 countries. Kraken boasts a diverse selection of over 200 crypto assets, including USDT, and charges an average fee of 0.1%. It also offers advanced options like staking and margin trading.
Here is a simple and short guide to purchasing USDT:
- Setup Account: Register and verify your identity on Kraken.
- Fund Account: Link your bank account in Kraken's funding section to transfer funds.
- Choose USDT: Locate USDT in the trading area of Kraken.
- Execute Purchase: Select USDT, enter the desired amount, review the details, and finalize your buy.
Buying USDT Fees
The cost to purchase Tether (USDT) differs across cryptocurrency exchanges. Kraken, for example, offers competitive fees of 0.16% for makers and 0.26% for takers, notably lower than some competitors like Coinbase, where stablecoin purchase fees can exceed 3%.
This highlights the importance of evaluating different platforms for the most economical option. Kraken, known for its lower fees, provides a cost-effective choice for USDT trading, combining affordability with reliability. Traders should consider their trading habits and volume when choosing an exchange, as fee structures and services vary significantly in the crypto market.
Will Coinbase Re-list Tether?
In light of recent events, it appears unlikely that Coinbase will re-list Tether (USDT) soon. Their recent initiative to persuade users to switch from USDT to their own stablecoin, USDC, by waiving conversion fees, underscores a strategic preference for USDC.
This shift aligns with the broader industry trend following the FTX collapse, where the focus has intensified on the stability and security of stablecoin reserves. Coinbase emphasizes that USDC is fully backed by cash and U.S. treasuries, highlighting its reliability and trustworthiness.
Final Thoughts
In conclusion, while Coinbase does not directly support the purchase of Tether (USDT) on its primary platform, preferring to promote its own USDC, alternative methods and platforms exist for acquiring USDT. Users can utilize the Coinbase Wallet in conjunction with decentralized exchanges, albeit with added complexity and risk. Alternatively, Kraken offers a more straightforward and regulated option for buying USDT, with competitive fees and advanced trading features.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
