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    How Much Does It Cost To Send USDT?

    Updated: Nov 27th, 2022
    Kevin Groves
    Kevin Groves
    How Much Does It Cost To Send USDT?

    USDT is one of the most popular 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.

    How Much Is It To Send USDT?

    The USDT transaction fees vary depending upon the cryptocurrency exchanges and the amount of USDT withdrawn from them. The average fee to send Tether is approximately 7.82 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 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, the process of 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.

    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, the minimum withdrawal requirements and the transaction fee are different for each network. 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.

    What Is 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 ExchangeTether Transaction Fee (USDT)
    Binance0.29 (BEP-20), 3.2 (ERC-20), 0.8 (SOL), 0.8 (TRC-20)
    ByBit10 (ERC-20), 1 (TRC-20)
    KuCoin25 (ERC-20), 1 (TRC-20), 1 (SOL), 5 (BEP-20)
    Kraken3.55 (ERC-20), 2.5 (TRC-20)
    Crypto.com Exchange10 (ERC-20), 0.8 (BEP-20)

    What Is The Maximum USDT Transaction Fee?

    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.

    Why Is The USDT Transfer Fee So High?

    The fee to transfer USDT is influenced by many factors, including network congestion, transaction confirmation times, and the size of the transaction. Disturbance in any one 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: For crypto accounts with a history of micro deposits, the size of the transaction becomes bigger, which leads to a higher blockchain fee.

    How to Lower the USDT Transaction Fee?

    The way to reduce the USDT transaction fee varies depending upon 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 to withdraw 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 reduce the trading fee.
    3. Leverage crypto promotions and bonuses. Some exchanges offer incentives to attract new customers to their platform. 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 charged 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 are creating an account. Visit the Tether fees page for more information.

    USDT transaction costs on the Tether networkUSDT transaction costs on the Tether network

    Frequently Asked Questions

    Yes, cryptocurrency exchanges indirectly allow users to set their USDT transaction fee by selecting the network. They can switch between BNB chain, TRON, Ethereum, Avax C-chain, polygon, and Solana which have different costs to send USDT over their networks.

    No, the USDT transaction fee is not avoidable. The Tether network has to ensure that the tokens are concurrently burned and added to the circulation to maintain USDT’s value equal to the USD. To accommodate these features, paying a transaction fee is necessary.

    The USDT transfer fee is often deductible under tax laws in the United States of America and many other countries around the world. The fees associated with sending USDT are deducted from the sale price.

    Conclusion

    USDT has an average transaction cost of 7.82 USDT inclusive of exchange and blockchain network fees at the time of writing. The costs vary greatly between the chosen platform to transact USDT and the network used. The cheapest option to send USDT is to use an exchange without additional crypto withdrawal fees. Moreover, sending Tether using networks such as Binance smart chain, Tron and Solana is the most economical with fees of less than 1 USDT.

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    Kevin GrovesKevin GrovesKevin Groves

    Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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