Tether (USDT) has become the most widely used and liquid stablecoin in the cryptocurrency market. A stablecoin is a digital currency that is pegged to a more stable reserve asset to reduce price volatility. In Tether’s case, every USDT token issued is backed 1-to-1 by equivalent U.S. dollars held in reserve.

As of 2023, Tether is natively integrated with over 15 different blockchain networks, including major ones like Ethereum, Tron, and Solana. This cross-chain interoperability has contributed to its popularity.

Overview of Tether on Binance Smart Chain (BSC)

The Binance Smart Chain (BSC) also supports Tether in the form of USDT BEP20 tokens. BEP20 is the technical standard used to issue tokens on BSC. It builds on Ethereum’s ERC20 standard but with lower gas fees and faster transaction times.

Using USDT on BSC can provide traders and decentralized apps access to Tether’s liquidity and price stability on a faster, cheaper blockchain. This makes BSC an appealing platform for DeFi protocols looking to offer stablecoin integration.

In this guide, we walk through the key steps for depositing, transferring, and trading Tether in its BEP20 token format on Binance Smart Chain using Binance exchange and MetaMask wallet.

Depositing USDT (BEP20) on the BNB Smart Chain?

If you want to use USDT on BSC, the easiest way is to deposit it from an exchange like Binance. Here is a step-by-step guide:

1. Go to Binance.com and register an account if you don’t already have one. 

2. Click “Deposit” on the homepage and choose to deposit cryptocurrency. This allows you to transfer crypto you already own.

Binance Homepage

3. Select which coin you want to deposit from the list. For this guide, we will select Tether (USDT).

4. Choose the BSC network as your destination when depositing. This means your USDT will automatically be converted to BEP20 USDT.

5. Copy the BSC deposit address provided. 

6. Use this address to send your USDT from wherever it is currently stored, such as an external crypto wallet.

7. After your deposit transactions are confirmed, the BEP20 USDT will be in your Binance account, ready to use on BSC.

The minimum deposit amount is 0.01 USDT. Once the BEP20 USDT is in your Binance account, you can use it on BSC or withdraw it to an external BSC-compatible wallet.

Transferring USDT on Binance Smart Chain

Once your Tether is deposited as BEP20 tokens on Binance Smart Chain, you can easily transfer it to any other BEP20-compatible wallet address. 

To do this on Binance:

1. Access your Spot Wallet page from your Binance account.

Home page

2. Search for Tether (USDT) among your balances. 

3. Click the “Withdraw” option next to your USDT balance.

4. Enter the BEP20 wallet address you want to transfer the USDT to. This can be another exchange that supports BSC, or an external crypto wallet.

5. Input the amount of USDT you want to transfer. 

6. Verify the network is set to BSC, then submit the withdrawal. BSC withdrawal fees are around 0.29 USDT.

Once confirmed on the BSC network, your USDT will reflect in the destination wallet.

Swapping USDT (BEP20) on Binance Smart Chain 

If you want to exchange your USDT for other BEP20 tokens on BSC:

1. Use a BSC-compatible wallet like MetaMask. Ensure BSC is added to the network options.

2. Access the swap interface and select the tokens you want to swap between. For example, USDT to BNB.

3. Input the amount of USDT you want to swap. 

4. Verify the exchange rate and network fees, which are paid in BNB. 

5. Confirm the swap after reviewing the details.

The BEP20 tokens received will show in your connected BSC wallet upon confirmed swap.

BSC supports seamless transfers and swaps of Tether with low fees. Just ensure the wallet or exchange platform is configured for BSC.

Frequently Asked Questions (FAQs) 

Q. What is USDT BEP20?

USDT BEP20 refers to Tether tokens that are issued on the Binance Smart Chain (BSC) using the BEP20 technical standard. This standard defines a common set of rules for creating tokens on BSC. USDT BEP20 represents Tether stablecoins specifically designed to work on BSC, allowing fast transfers with low fees while still being backed 1:1 by Tether’s USD reserves.

Q. Can I transfer USDT through BEP20? 

Yes, you can easily transfer USDT via BEP20 on Binance Smart Chain. Just make sure to pay attention when withdrawing/depositing to only use BEP20 addresses – sending USDT BEP20 tokens to an Ethereum address will result them being lost. Also ensure your BSC wallet has enough BNB to cover gas fees which are much lower than Ethereum.

Q. What is the difference between USDT BEP20 and USDT ERC20?

The key difference is USDT BEP20 tokens are designed for Binance Smart Chain while USDT ERC20 tokens are issued on the Ethereum network. Since BSC offers faster transactions and lower fees than Ethereum, USDT BEP20 provides a cheaper, speedier way of transferring Tether.

Q. How do I transfer USDT via BEP20?  

You’ll first need a crypto wallet that is BEP20-compatible, such as Trust Wallet or MetaMask with BSC added. Get a recipient address for USDT BEP20. In your wallet, initiate a USDT withdraw, entering the address and amount. Make sure you select Binance Smart Chain before confirming the transfer.  

Q. How to swap USDT BEP20 to ERC20?

You can swap USDT BEP20 for ERC20 on decentralized exchanges like PancakeSwap or 1inch by connecting your BSC wallet. Alternatively centralized exchanges like Binance allow direct swapping between USDT versions on Ethereum and BSC.

Q. How to create a BEP20 wallet?

The easiest way is to install a wallet like MetaMask or TrustWallet, add the Binance Smart Chain network, then simply receive USDT BEP20 tokens by sharing your wallet address. Crypto exchanges that support BSC like Binance also automatically create USDT BEP20 wallets when you open an account.

The post USDT BEP20: A Step-by-Step Guide – How to Deposit, Transfer & Swap Tether on BEP20 appeared first on CoinChapter.

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Filed under: Bitcoin - @ February 23, 2024 2:59 am