Tether – USDT is a stablecoin pegged to the US dollar which can currently be considered the most popular stablecoin. Its role in the cryptocurrency market is huge. It acts as a “storm shelter” for traders against the sharp price fluctuations of most cryptocurrencies. So you need to master the basics of this cryptocurrency.
Readers can refer to the article: What is USDT? Basics to know about USDT for the basics. Besides, any transaction to buy USDT or sell USDT, you need to have yourself a USDT wallet. And in this article, Virtual Currency Corner will go into depth on USDT wallet, an extremely important area when you want to buy and sell USDT in VND.
What is USDT Wallet?
The term “wallet” in the crypto space is very familiar. Any cryptocurrency will have its own wallet for storage. For example: Bitcoin (BTC) has a BTC wallet; Ripple coin has XRP wallet; Ethereum coins have ETH wallets;…and similarly, USDT coins will have USDT wallets.
It would be quite theoretical if we took a long time just to explain it in detail What is a USDT wallet. You just need to understand simply, USDT wallet is a type of wallet specialized to store Tether. This wallet has the same task as the wallet you are using every day, it keeps and protects your money. USDT is a cryptocurrency, so its wallet is not a physical object.
Similar to other cryptocurrencies, USDT wallet can also be a hot wallet or a cold wallet, an online wallet or an offline wallet, etc. Each of these wallets has relatively different characteristics. They can also store a variety of coins or are specific to USDT.
Current Forms of USDT
Initially, the USDT coin had only one standard and operated on the Omni blockchain.
Omni is a development blockchain based on the Bitcoin blockchain. The Omni wallet standard is the original wallet to store USDT, because it works on the Bitcoin blockchain, this wallet standard exposes some disadvantages such as: slow transaction completion speed, very expensive transaction cost. Realizing this, Tether, the issuer of USDT, has issued USDT on another standard, which is the ERC20 standard.
In September 2017, Tether decided to issue USDT on Ethereum’s platform according to the ERC20 standard. Currently, the value of USDT on Ethereum’s platform is over $2 billion. And the USDT wallet that stores USDT-ERC20 coins is ERC20 standard.
With the outstanding advantages of transaction completion speed and low transaction costs, USDT-ERC20 is almost the optimal choice for current traders.
Besides, a USDT standard that is attracting attention is USDT-TRC20 running on the TRON blockchain platform.
Because USDT has many operating standards, there will be wallets that only support 1 separate USDT standard or multiple USDT standards.
So what is the basis for classifying USDT wallets? Which USDT wallet should I choose?
Types of USDT Wallets
In this article, I will classify each type of USDT wallet and evaluate it. Each wallet type has its own advantages and disadvantages. Therefore, it is impossible to confirm which USDT wallet is the best because each will be suitable for each purpose.
With this type of wallet, I will list 2 types of wallets that support the 2 most popular USDT standards today:
Store USDT with MyEtherWallet
MyEtherWallet is a very popular online wallet for those who have ever “hunted for ICO”. It supports Ethereum as well as ERC20, ERC721 standard tokens…
You can refer to the article: What is MyEtherWallet? Instructions on how to create a MyEtherWallet wallet and how to use it for more details.
Since USDT-ERC20 is ERC20 compliant, you can store it at MyEtherWallet.
MyEtherWallet has 1 advantage that is fast USDT transfer speed and low fees. However, it has one fatal drawback: the lack of basic security features. As long as you have the private key, you can completely access the wallet and transfer coins in a simple way.
With such advantages and disadvantages, the MyEtherWallet wallet is only suitable for those who regularly trade USDT. It is not suitable for those who intend to hold USDT long-term in large quantities.
Store USDT with Omni wallet
Omni Wallet is an online wallet like MyEtherWallet but it only supports Omni standard USDT. It also has the same fatal weakness as MyEtherWallet, lacking basic security features.
In addition, with the Omni standard, USDT transfers are very slow and transaction fees are very high, so USDT Omni has become obsolete.
Really, only those who have USDT Omni should consider storing it in the Omni wallet. Otherwise, you should switch to the more “trendy” USDT-ERC20 standard by buying USDT in VND at exchanges that support USDT-ERC20 such as: Bitmoon exchange, Ifidex exchange, Remitano exchange.
This is probably the type of USDT wallet that I use most often. Exchange wallet here means that you store USDT at exchanges. Because the popularity of USDT is so great, almost all major cryptocurrency exchanges support you to store USDT.
You should use wallets of large and reputable exchanges such as: Binane exchange, Huobi exchange. Both exchanges support users to store, deposit and withdraw all 3 standards USDT Omni, USDT-ERC20, USDT-TRC20.
The advantage of the exchange wallet is that it will be more convenient for you to use USDT to trade in other coins. In addition, the floor will often have security features such as: 2-step verification (2FA), deposit verification via email, IP address verification, etc., so you will be more assured of security.
The biggest downside is probably that the exchange is always a place that hackers target to attack. So you will have the risk of one day “bad weather” when the exchange you store USDT on is visited by hackers and your assets fly away. Or you store at less reputable exchanges, one fine day the CEO of the exchange disappeared with the exchange’s coin storage wallet.
You should prioritize storing in large and reputable exchanges with a risk reserve fund to store USDT. Exchange wallets are suitable for crypto traders, but you should not store all of your USDT in a single exchange. Should allocate to different floors to prevent risks.
There are two popular cold wallets today, Trezor and Ledger, both of which support USDT storage.
Cold wallets have a great advantage that is high security. You are in complete control of your USDT deposits and withdrawals. However, cold wallets have a weakness that is flexibility. Every time you want to transact, having to connect your wallet to your computer is very annoying.
Therefore, cold wallets are only suitable for those who want to store USDT for a long time, with few USDT trading transactions.
So I have outlined 3 popular types of USDT wallets as well as the knowledge you need to know about USDT wallets.
With each separate wallet type, it will be suitable for different users:
- Online wallets are suitable for those who often transact, but the security level is poor.
- The exchange wallet is suitable for traders who often buy and sell cryptocurrencies. The level of security is relatively high, but you face the risk of hackers.
- Finally, cold wallets. Cold wallets are suitable for those who want to store USDT for a long time, with few transactions. The advantage is high security but the disadvantage is less flexibility.
Thereby, I hope that readers will choose for themselves the most suitable wallet. Good luck!
Virtual Currency Corner