This Is How Much It Costs To Send USDT

Key Takeaways:

• The average transaction fee to send USDT is 5.46 USDT at the time of writing.
• Binance has the lowest USDT fees of 0.29 USDT using the Binance Smart Chain (BSC) network.
• The key factors influencing USDT transaction fees include network congestion, crypto microdeposits, and whether the market is in a bear or bull phase.
• USDT transaction fees are an unavoidable cost that the sender incurs. In many jurisdictions around the world, the fees are tax-deductible.

USDT is one of the safer stablecoins in the cryptocurrency space due to its relative price stability and familiar unit of account. Tether, more commonly known as USDT, is widely used for peer-to-peer transactions, trading between cryptocurrencies, cross-border payments, and as collateral in decentralized lending and borrowing products. Each use case will involve transferring USDT to different exchanges, platforms, and wallets that incur a fee. This article will explain how much it costs to send USDT, why there is a fee, who pays it, and whether the USDT transaction fee can be reduced.

The Costs Involved To Send USDT

The USDT transaction fees vary depending on the cryptocurrency exchange withdrawal fee, the amount, and network congestion. Based on these factors, the average fee to send Tether is approximately 5.46 USDT at the time of writing. One of the lowest USDT transaction fees can be found on Binance at 0.29 USDT per withdrawal using the Binance smart chain (BSC) network. The most expensive fees are when using the ERC-20 Ethereum network, which can cost up to 25 USDT on exchanges such as KuCoin.

Why Does USDT Have a Transaction Fee?

Tether was founded in 2014 and, since then, has been one of the most stable “stablecoins” in the blockchain space. While its Tether reserves ensure constant equivalency with the dollar, Tether’s flexible approach, which allows it to be transacted across multiple chains, takes a lot of effort and charges a transaction fee to support the network. Furthermore, creating and burning USDT happens almost continuously, requiring constant maintenance and oversight. They are the result of Tether’s original purpose, which was to use the Omni Layer of the Bitcoin network.

Related: How much is a Bitcoin transaction fee?

This Is Who Pays The USDT Transaction Fee

The USDT transaction fee is paid by the owner who transfers Tether from one account to the next. It is determined by the type of blockchain network and the network congestion. Moreover, each network's minimum withdrawal requirements and the transaction fee differ. Most blockchains have lowered the transaction fee for USDT. For instance, Tron only charges 0.8 USDT to withdraw Tether compared to 3.20 USDT on the Ethereum network.

The Lowest USDT Transaction Fee

Using the Binance chain has a cost of 0.29 USDT on Binance, which is one of the cheapest ways to send a USDT transaction. The table below shows the USDT transaction costs for some of the most popular crypto exchanges such as Binance, Crypto.com, Bybit, Kraken and KuCoin. The costs range from 0.29 USDT to 25 USDT depending on the exchange and blockchain network used.

Cryptocurrency Exchange	Tether Transaction Fee (USDT)
Binance	0.29 (BEP-20), 3.2 (ERC-20), 0.8 (SOL), 0.8 (TRC-20)
ByBit	10 (ERC-20), 1 (TRC-20)
KuCoin	25 (ERC-20), 1 (TRC-20), 1 (SOL), 5 (BEP-20)
Kraken	3.55 (ERC-20), 2.5 (TRC-20)
Crypto.com Exchange	10 (ERC-20), 0.8 (BEP-20)

The Maximum You Can Expect To Pay To Send USDT

The USDT transaction fee can depend on the blockchain network and the crypto exchange used to send the tokens. The most expensive blockchain network to send USDT is Ethereum (ERC-20). The cost to send USDT on ERC-20 can be as high as 30 USDT on crypto exchanges such as CoinDeal.

USDT Transfer Fees Are High On Some Networks

The fee to transfer USDT is influenced by many factors, including network congestion, transaction confirmation times, and the transaction size. Disturbance in any of these factors can lead to a high USDT transfer fee.

• Busy blockchain network: If the blockchain is engaged, the USDT transfer is queued, which leads to an increased transfer fee.
• Bear markets: Certain market changes can influence the USDT fee. For instance, during bear markets, where sell-offs and withdrawals are high, the network activity becomes more elevated, which leads to a higher cost.
• Micro deposits in crypto accounts: The transaction size increases for crypto accounts with a history of micro deposits, leading to a higher blockchain fee.

This Is How To Lower the USDT Transaction Fee

The way to reduce the USDT transaction fee varies depending on the cryptocurrency exchange from which USDT is transferred. The best options include sending USDT over a cheaper network (e.g. BEP-20 or TRC-20) and using an exchange without additional withdrawal fees. Some platforms also have promotions that remove the fees for withdrawing USDT and other coins.

1. Select a different network with lower fees. Investors can switch the networks in their crypto wallets to alter the network fee. Ethereum-based wallets incur the highest transaction fee for USDT. For wallets that work on the Binance chain (BSC), Tron (TRC-20), or Solana network, the transfer fee is the lowest, around 1 USDT.
2. Use a different crypto exchange with lower withdrawal fees. To lower the USDT trading fees, investors can choose a different cryptocurrency exchange. Many commission-free trading applications can be used to reduce crypto trading fees.
3. Leverage crypto promotions and bonuses. Some exchanges offer incentives to attract new customers to their platforms. These can include deposit bonuses and reduced trading fees that can offset withdrawal costs. Other exchanges will promote a limited-time special for zero USDT withdrawal fees.

What is the fee to withdraw or deposit USDT on the Tether Network?

There is no fee for withdrawing or depositing USDT on the Tether network. However, a fee is charged for withdrawing fiat. The number of fiat withdrawals or deposit amounts on the Tether network is $100,000, and the fee per fiat withdrawal is greater than $1,000 or 0.1%. In addition, the Tether network charges a $150 verification fee to ensure that only serious investors create an account. Visit the Tether fees page for more information.

Frequently Asked Questions