Need a fast and affordable way to send money overseas?
Sending money across international borders traditionally is slow and expensive. Tether (USDT) has emerged as the dominant stablecoin for cross-border cryptocurrency transactions — and for good reason.
Cross-border cryptocurrency payments hit $600 billion in just Q2 2024. Tether is the leading solution, as adoption continues to grow by leaps and bounds.
What you’ll discover:
- Why Tether is the most commonly used currency for international payments
- How to accurately calculate the cost of a transaction
- Which network to choose for Tether transfers
- Cross-border best practices to follow for successful transactions
- How trading fees work for cryptocurrency exchanges and markets
Post Contents
Why Tether is Dominating The Cross-Border Space
Tether is not just widely used — it dominates the cross-border payment space.
One statistic will tell the story:
Over 80% of all cross-border cryptocurrency settlement transactions taking place on OTC desks use Tether.
That’s huge market share by any measure.
The reasons are simple:
Tether effectively bridges the gap between the volatility of cryptocurrencies and the relative stability of fiat currencies.
USDT is pegged 1:1 to the US dollar. This means senders know exactly what they’re going to receive. No surprises.
Traditional wire transfers using banks are painfully slow. The smallest amount of time is typically 3-5 business days before funds arrive. Tether transactions settle within minutes.
International SWIFT wire transfer costs often exceed $20-30 per transaction, plus currency conversion charges. Tether fees are fractions of those amounts.
By offering the best combination of speed, predictability, and low costs, it’s no surprise that Tether is the most commonly used choice for cross-border crypto payments.
Calculating Trading Costs with Tether
Before we get into best practices, it’s important to first understand the cost implications of making cross-border payments using USDT.
Transaction fees will vary based on several factors. This is where a fee calculator can be incredibly helpful. Helpful resources like the 테더 수수료 계산 가이드 (which translates to “Tether fee calculation guide” in Korean) provide a detailed breakdown of what you will pay before sending your funds across borders.
Key fees to understand are:
- Network fees (also known as gas fees)
- Exchange withdrawal fees
- Currency conversion fees (if necessary)
Different networks have vastly different fee structures.
The TRC-20 version of Tether running on the Tron blockchain charges roughly $0.30-2 per transaction. In comparison, the ERC-20 version running on Ethereum can be $5-50 depending on current network congestion.
That’s a significant difference!
For large value transactions, the fees may not matter. But with smaller amounts, every cent counts.
Choosing the right network can save you a surprising amount in fees.
Which Network Should You Be Using For Tether Transfers?
Tether is a multi-chain asset.
USDT runs on several different blockchains, each with its own advantages and disadvantages.
The most common networks to look out for are:
- TRC-20 (Tron blockchain)
- ERC-20 (Ethereum blockchain)
- BEP-20 (Binance Smart Chain)
- TON (TON network)
TRC-20 USDT has become the preferred option for cross-border payments due to its low cost and wide exchange support.
Most cryptocurrency exchanges list TRC-20 USDT and allow it to be sent and received. Networks like ERC-20 and BEP-20 also work fine, but TRC-20 usually offers the best value for the majority of users.
Network congestion can also have a huge impact on fees.
For example, during periods of high traffic, Ethereum network fees can spike dramatically. Tron is less affected by network activity and tends to be consistently low-cost.
For cross-border payments where value matters, TRC-20 is generally the optimal choice.
How Tether Enables Faster International Payments
Speed is always of the essence when sending money overseas.
International wire transfers between banks can take 3-5 business days to even be approved. Funds are often delayed for multiple days in intermediary banks.
Tether completely sidesteps the middlemen. Transactions happen instantly on the blockchain itself. It doesn’t matter if the bank is closed for a holiday. USDT transfers are decentralized and can be sent 24/7/365.
Real-World Use Cases of Cross-Border USDT
The use cases for Tether are broad and global.
Individuals use USDT to send payments to family overseas instantly. Businesses pay international suppliers with Tether, skipping days of wire transfer lag. The stablecoin also provides stability for residents of countries with volatile national currencies.
One example is…
A person working in country A wants to pay an individual in country B. They need to convert from A’s currency, pay a bank wire transfer fee, then the receiving bank also charges fees. This process can take multiple days.
With Tether, the transaction is done in minutes and the user pays tiny fees.
The demand for quick, low-cost international payments will continue to fuel Tether’s global adoption.
Cross-Border Transfer Best Practices
Sending money safely across borders is the first priority.
Follow these best practices when making cross-border transfers using Tether to ensure funds go through and stay secure:
- Double-check recipient addresses. Mistypes can result in permanent loss. Verify all letters and numbers before hitting send.
- Send a small test amount. Before moving large funds, do a test payment to confirm it reaches the recipient.
- Stick to trusted platforms only. Use only reputable exchanges and wallets with high-security standards.
- Keep private keys confidential. Never share your wallet seed phrases or private keys with anyone.
- Track transaction status. Use blockchain explorers to monitor transaction progress on the network in real-time.
The blockchain is permanent. Cryptocurrency transactions cannot be reversed or cancelled. Precautions ensure successful transfers.
Optimizing Transaction Fees for USDT
The more value extracted from each payment, the better.
A few best practices can help minimize fees when making cross-border USDT transfers:
- Transfer during low congestion periods. Gas fees vary based on supply and demand. Sending when network activity is low will reduce costs.
- Batch multiple transfers into one. Several smaller transactions result in higher fees than fewer larger amounts.
- Choose the optimal network. As discussed, network selection makes a huge difference. Opt for TRC-20 most of the time.
- Consider exchange fee structures. Some exchanges have flat withdrawal fees, others percentage-based. Compare before making a transfer.
Fee management will compound into savings of hundreds or thousands per year for heavy users.
The Future of Cross-Border Crypto Payments
The trend lines point to one direction — increased stablecoin adoption for international payments.
Central banks, financial institutions, and payment processors are all beginning to embrace the technology. Banks are investigating stablecoin integration. Payment services are adding crypto functionality.
Global acceptance will lead to exponential new use cases.
The cross-border payment landscape is changing, and Tether is leading the charge.
Wrapping Up
Tether has completely transformed the way cross-border cryptocurrency transactions happen.
By providing fast, stable, and predictable payments that are also low-cost, Tether has emerged as the most commonly used solution worldwide.
By understanding how to calculate trading costs, choosing the right network, and following a few security best practices, anyone can effectively leverage USDT to move value internationally.
Cross-border payments no longer have to be slow, expensive, and cumbersome. Tether allows people all over the world to send and receive funds instantly and affordably.
In summary, you should:
- Use TRC-20 for most transactions due to optimal balance of fees and speed
- Always double-check recipient addresses before clicking send
- Calculate the full cost of transactions upfront to avoid surprises
- Always use a small test transaction before sending large amounts
- Track transaction progress with a blockchain explorer
The best part is, international cross-border payments have never been easier or more accessible to the general public.