How To Save Money in Dollars with USDT

Are you losing money to inflation or struggling with currency devaluation? Finding a secure way to save in Dollars without a U.S. bank account can be challenging, especially in countries with restricted access to foreign currency.

If you live in Nigeria or any country facing currency instability, you’ve likely seen your savings lose value due to inflation. Traditional banks make it difficult to access U.S. dollars, and high exchange rates, coupled with strict regulations, only add to the frustration. But what if you could store your money in a digital dollar that maintains its value?

This is where USDT (Tether) provides a perfect solution. In this guide, you’ll learn how to use USDT for savings, the best ways to buy and store it, and how to convert it back to your local currency when needed.

What is USDT?

USDT (Tether) is a stablecoin cryptocurrency created by Tether Limited in 2014. USDT is a stable solution for storing values and transacting in digital dollars. It is the world’s largest stablecoin and boasts a market capitalization of $141 billion (only surpassed by Bitcoin and Ethereum) with a trading volume of $50 billion daily. 

Each USDT token is equivalent to the U.S. dollar at a 1:1 ratio and backed by reserves, cash, U.S. treasury bills, and other assets, including receivable Tether loans to third parties. Although USDT has faced scrutiny over its reserves, it has proven beyond doubt to be the most liquid stablecoin amidst various market conditions. These reserves empower USDT to be a reliable store of value and not just a speculative asset. 

Unlike fiat currencies, USDT operates on Blockchain networks. Some of the most popular blockchain networks supporting USDT include Tron (TRC-20), Ethereum (ERC-20), Polygon (MATIC), and Binance Smart Chain. These networks enable fast, low-cost transactions without the need for intermediaries, though transaction costs can vary depending on the blockchain used.

Why People Use USDT for Savings

1. Protects Against Inflation: USDT always holds dollar value, unlike local currencies which are prone to inflation ; USDT maintains its 1:1 dollar ratio, following the market movement. Its stability is a great strength for adoption.

2. Cross-Border Payments: Sending USDT is cheaper and faster than traditional bank transfers. It enables global transactions and makes them easier.

3. Trading & Investing: USDT is widely used to trade other cryptocurrencies without exposure to price swings.

4. Low Transaction Fees: Sending USDT across borders is more core-effective than fiat currencies. 

Step-by-Step Guide on How to Save USDT;

1. Choose a Reliable Crypto Exchange
   To start saving in USDT, you need to purchase USDT from a reputable crypto exchange platform like Binance, KuCoin, or Kraken.

2. Sign Up and Verify Your Account
   Most exchanges require KYC (Know Your Customer) verification, so be prepared to submit a government-issued ID alongside other documents like proof of address.

3. Purchase USDT(Tether)
   Deposit Naira ( or your local currency) via bank transfer, card, or P2P trading. Then purchase your preferred amount of USDT at the prevailing exchange rate.

4. Secure Your USDT in a Wallet:
   If you’re saving a small amount of USDT for a short period of time, you can hold it in your hot wallet provided on the exchange you registered on.
   
   But if you’re considering long-term storage, it’s better to use cold wallets like Ledger or Trezor for added security.

How to Convert Your USDT Back to Naira Instantly Using Breet

When you’re ready to sell your USDT for Naira,  opt for Breet, which offers instant settlements, zero hidden fees, and top market rates. There are zero hidden fees, no delayed withdrawal times, and no complex user interface.

Steps to Sell USDT on Breet

Step One:

Sign Up & Get Your Wallet Address

Download the Breet app (available on iOS & Android) and create an account.

Your wallet address is instantly auto-generated upon sign up. 

Step two:

Transfer USDT to Your Breet Wallet

Log in or sign up to the exchange holding your USDT. 

Then, choose USDT (Tether) and select your preferred network. Copy your unique Breet USDT wallet address and send the amount you want to sell.

Step three:

Automatic Exchange & Instant Naira Settlement

Once your USDT is received, Breet automatically converts it to Naira at the current exchange rate.

You’ll see the equivalent Naira balance in your Breet wallet after the blockchain confirmation 

Step four:

Withdraw Directly to Your Bank Account

Click “Withdraw” and link your local bank account in Nigeria or Ghana.

Funds will be deposited instantly, without delays!

Whether you’re a freelancer receiving payments in USDT, a trader cashing out profits, or a business accepting crypto, Breet makes the process effortless.

Common Risks Involved in USDT Savings and How to Avoid Them.

1. Security Risks: Always enable 2FA (Two-Factor Authentication) on your exchange account.
   Never store large amounts on exchanges—use a hardware wallet if saving long-term.

2. Counterfeit or Fake USDT: Only transact with trusted exchanges and platforms like Breet to avoid fake USDT tokens.

3. Transaction Fees: Transaction fees vary as exchange platforms charge higher fees for buying and selling USDT.
   Breet does not charge transaction fees while other exchanges like Binance charges 0.1% per transaction, and Kraken charges 0.26%.

4. Regulatory Concerns: Some governments have strict policies on stablecoin usage. Always comply with local regulations when using USDT.

Frequently Asked Questions (FAQs) About How to Save Money in Dollars with USDT

• Can USDT be used for long-term savings?

Yes. USDT can be used for long-term savings, but be aware that it does not protect against inflation since it’s pegged to the U.S. dollar. 

You can consider using cold storage wallets like Ledger for long-term holding or diversifying into yield-generating options. 

• How do I convert naira to USDT?

To buy USDT with your local currency, you can use a crypto exchange like Binance, Coinbase, or KuCoin. Alternatively, start using Breet to receive USDT from family, friends, clients or business partners.

• What are the fees needed to convert USDT to Naira

Converting USDT to Naira with Breet is free, and you also get the best exchange rates. 

• Can I earn interest on USDT?

Yes! Several platforms, such as Binance Earn, Nexo, and Aave, offer interest on USDT deposits in DeFi savings accounts.

• Is USDT better than holding USD  in a bank?

It depends on your needs; USDT is excellent for fast, borderless transactions with lower fees. This is because banks offer more regulatory protection but may charge higher fees for conversions and international transfers.