How To Buy Tether USDT in Canada (2021)

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by Enoch Omololu

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Looking to buy Tether (USDT) in Canada? This article covers how and the cheapest places to buy Tether right now.

The Tether stablecoin makes it easy to conduct cryptocurrency transactions on exchanges while maintaining the fiat value in funds you haven’t yet invested.

USDT has grown dramatically in popularity and as of this writing is the fifth-largest cryptocurrency by market capitalization.

What is Tether?

Tether is a stable currency that is backed 1:1 by the US dollar such that you can easily redeem your USDT holdings for the same value in USD fiat at any point in time.

For example, if you have 1,000 USDT, you should be able to convert it for US$1,000 if needed.

Because the value of Tether is pegged to the dollar, it does not fluctuate in price like other cryptocurrencies and can serve as a stable store of value.

USDT is not the only stablecoin making waves in 2021.

Crypto traders can also use USD Coin (USDC) and Binance USD (BUSD).

Tether was originally created in 2014 by Brock Pierce, Craig Sellars, and Reeve Collins. Learn more in this Tether review.

Where To Buy Tether in Canada

Several cryptocurrency exchanges and brokerage platforms offer Tether (USDT) in Canada.

Some of the best places to get Tether are:

1. NDAX

NDAX is a top-rated crypto exchange offering 16 coins including USDT. This platform has one of the lowest fees when buying or selling Tether and this helps to lower the fee drag on your investment returns.

It is also available via web and smartphone apps.

  • Coins offered: USDT and 15 other coins
  • Funding options: Interac e-Transfer, bank draft, wire transfer, and crypto deposits
  • Fees: 0.20% trading fee; free deposits, flat low fee for withdrawals
  • Offer: Get a $10 bonus when you fund with your first $100

Learn more about NDAX in this review.

2. Binance

Binance is the world’s largest cryptocurrency exchange. If you are looking to buy altcoins or stablecoins (e.g USDT)), the chances are that you will find them on Binance as it supports more than 300 cryptocurrencies.

This platform also has its own coin known as Binance Coin.

  • Coins offered:  Over 300 types including USDT
  • Funding options: Bank transfer, credit card, debit card, P2P, crypto, and several third-party payment channels.
  • Fees: Varies depending on your account tier from 0.02% to 0.10%
  • Offer: Get up to 25% off your trading fees

Binance is one of the cheapest ways to buy Tether in Canada. Note that the platform is not available to residents of Ontario.

Learn more about Binance.

3. CoinSmart

CoinSmart was established in 2018 and is one of a few crypto exchanges in Canada that supports Tether.

You can also use the platform to buy USD Coin (USDC) and if your bank allows it, CoinSmart accepts credit card purchases

  • Coins offered: 10 coins including USDT and USDC
  • Funding options: Interac e-Transfer, bank wire, bank draft, credit/debit cards, and crypto
  • Fees: 0.20%-0.30%; most deposits are free; 6% for credit cards; 1% fee for withdrawals
  • Offer: Get a $20 bonus with your first $100 deposit

CoinSmart users can hold multiple currencies including CAD, USD, and EUR.

Learn more in this review.

4. Crypto.com

Crypto.com is available to users in multiple countries including Canada. It supports more than 100 coins including Tether and also has its own native token, CRO.

In addition to cryptocurrency trading, you can use Crypto.com to stake your coins and earn interest or dabble in non-fungible tokens (NFTs). It also offers crypto credit cards.

  • Coins offered: Over 100 including USDT
  • Funding options: Bank transfer, Interac e-Transfer, crypto, and others
  • Fees: Vary depending on your account tier (up to 0.40%)
  • Offer: Get a $25 bonus when you stake enough CRO for a metal crypto Visa card

5. Newton

Newton is a cryptocurrency trading site that offers 43 different coins including Tether and USD Coin.

  • Coins offered: 40+ including USDT
  • Funding options: Interac e-Transfer, wire transfer, and crypto deposits
  • Fees: Price spread of up to 0.70%; free deposits and withdrawals
  • Promotion: Get a $25 bonus after trading your first $100

Learn more details in this Newton review.

How To Buy USDT in Canada

To buy Tether in Canada, you can either use a cryptocurrency exchange or brokerage that offers it.

Alternatively, there are also options to buy Tether directly from other individuals via peer-to-peer trading platforms or from a crypto ATM.

If you are using one of the USDT exchanges on this list, the steps are:

  1. Visit the crypto exchange to create an account. Generally, you are required to confirm your identity and this process is often completed automatically.
  2. Add funds to your account using fiat. You can also deposit crypto from another exchange or external wallet.
  3. Search for USDT and place a market or limit order to buy the coin.

How To Store Tether

If you hold a large amount of the Tether coin, you should consider storing it safely using a hardware crypto wallet.

The most popular offline crypto wallets for Tether are Ledger and Trezor.

You can also keep your USDT on the exchange, however, this option may not be as secure.

Is Tether a Good Investment?

Tether has done very well in the last few years, becoming a top-5 crypto asset with a market capitalization of $68 billion as of October 2021.

It is not an investment in a strict sense as its value is pegged 1:1 to the U.S dollar.

That said, you could earn interest on your USDT holdings by staking them on platforms like Nexo, BlockFi, and Crypto.com.

It is worth noting that Tether has been the subject of a lot of controversies in recent times, including lawsuits that allege it misrepresented its 1:1 backing using traditional currency (i.e. UD dollar).

Tether FAQs

Where can I buy Tether crypto?

You can buy Tether in Canada using NDAX, Binance, Newton, CoinSmart, and a few other cryptocurrency exchanges.

How safe is Tether?

Tether coins are supposed to be backed 100% by U.S. dollars. That said, this may not be the case at all times, and in Canada, Tether is not insured by the CIPF.

Can I cash out Tether?

Yes, you can sell your Tether and withdraw the value in fiat currency.

Which is better: USDT or USDC?

Both USDT and USDC are stablecoins designed to serve similar purposes. That said, while USDT is more popular, USDC appears to be more transparent.

Related:

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, Credit Canada, MSN Money, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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