How to Store Your USDT With BOSS Wallet

Summary: You can store your USDT regardless of chain on a crypto wallet like BOSS Wallet. By storing your USDT on BOSS Wallet, you’ll also be able to use it to pay for gas fees, saving you the hassle of acquiring native coins when exploring new chains.

Key Takeaways

• USDT is the largest stablecoin by market capitalization and is the most widely available stablecoin, with a presence on almost any blockchain and any trading pair.

• USDT can be used to store profit between trades and engage in lower-risk yield farming DeFi activities.

• BOSS Wallet lets you use USDT to pay for gas fees for cross-chain transactions through its gas abstraction feature, the Gas Pool.

• You can also buy, store, and trade USDT across multiple chains on BOSS Wallet.

What Is USDT?

USDT is the largest stablecoin by market capitalization, and the most common cryptocurrency present in trading pairs. At time of writing, USDT dominance is at 69% and the stablecoin is available on almost any network, either as a natively issued token or a bridged/wrapped version of the original token. 

USDT is pegged to the US dollar, where 1 USDT is equal in value to 1 USD. According to Tether, the issuing company of USDT, every USDT is fully backed by Tether’s assets and reserves, with the firm’s combined assets exceeding their combined liabilities. These reserves consist mostly of U.S. Treasury Bills and other cash equivalents, with smaller allocations to diverse assets like precious metals, bitcoins, and other investments.

This lends users the reassurance that USDT can always be redeemed for fiat currency, as every USDT is backed with assets of equivalent value. Redeeming USDT for USD directly from Tether is quite troublesome, requiring a minimum redemption of $100,000 with a 0.1% fee and establishing a verified Tether account. However, most users can easily offramp their USDT through centralized crypto exchanges, which offer them an easy way to convert their USDT to the fiat currency of their choice.

As mentioned above, USDT is a stablecoin, and stablecoins play a key role in the cryptocurrency space. Let’s take a closer look at what stablecoins are and why they’re so important.

What Are Stablecoins?

As the name suggests, stablecoins offer a stable value in the volatile world of cryptocurrency, as they are usually pegged to another asset, like fiat currencies. Due to their stable value, stablecoins usually act as a way for crypto users to store and transfer value without exposing themselves to price volatility. For example, a trader can take profits and convert their earnings to USDT when they are in between trades, and easily swap their USDT to a new cryptocurrency when they are ready to resume trading. 

What Is USDT Used For?

Now, let’s look at some of the uses of USDT. 

Storing Profits Between Trades

As mentioned above, USDT acts as a stable store of value. For traders, USDT allows them to store value in between trades and remain in the crypto ecosystem without needing to offramp into fiat and paying the related fees. When they are ready to reenter the market, they can easily trade USDT for other cryptocurrencies, without incurring onramp fees.

Gas Payment on Supported Chains, Wallets, and DEXs

With many platforms looking to improve the accessibility of cryptocurrencies, USDT is becoming increasingly accepted as an alternative to the native coins of blockchains. For example, with BOSS Wallet, you can deposit USDT and other supported assets into the gas pool to be used for paying gas fees for transactions on supported blockchains, without needing to acquire the chain’s native tokens by purchasing them on centralized exchanges or bridging them from other chains.

Engaging in DeFi Activities

USDT is the most widely available stablecoin, so almost every decentralized crypto exchange will pair their assets with USDT, making it easy for users to trade USDT for almost any asset, from the latest memecoin to stalwarts like Bitcoin and Ether. 

USDT can also be used to provide liquidity and earn yield through yield farming on decentralized exchanges. Decentralized exchanges utilize liquidity pools to facilitate swaps, where users can take on the role of liquidity providers, depositing token pairs onto these platforms to provide liquidity for traders. Liquidity providers will earn a share of trading fees on the platform, and may also earn additional rewards in the form of the decentralized exchange’s governance tokens or other incentives. 

For USDT holders, they can opt for stablecoin liquidity pools, where stablecoins are paired (e.g. USDT and USDC) instead of pairing with a traditional cryptocurrency (USDT and ETH). This reduces the risk of impermanent loss, which occurs when the price of a deposited asset changes from when you deposited it, resulting in a lower value at the time of withdrawal than at the time of deposit, as stablecoins maintain a constant value.

An Alternative to the Traditional Financial System

USDT, with its deep liquidity and widespread availability, also offers users in emerging markets an alternative to the traditional financial system. In these cases, stablecoins offer a stable alternative to the country’s fiat currencies, which are more susceptible to hyperinflation. Tether offers users a simple way to store their holdings in USD, while allowing them to access DeFi protocols as an alternative to traditional banking. 

As a cryptocurrency, USDT lets users transfer and receive funds through their crypto wallets without revealing any information about their identity and location. It can also serve as an alternative to traditional remittance services, as users can opt for cheaper chains like Tron to send USDT for international payments and remittances. 

How to Choose a Crypto Wallet For USDT?

When choosing a crypto wallet to store your USDT, here are some considerations.

 Cross-Chain Interoperability

With the widespread availability of USDT, you will be well-placed to explore any chains in the cryptocurrency space. BOSS Wallet makes it even easier for you to explore the crypto space, as you won’t even need to acquire native tokens to explore the capabilities of a new chain. On most popular wallets like Coinbase Wallet, MetaMask and Trust Wallet, you’ll need to figure out how to acquire the native tokens before you can explore a new chain.

BOSS Wallet has a multi-chain gas pool, where you can deposit any supported cryptocurrencies to be used to cover transactions on any of BOSS Wallet’s supported 90 chains. BOSS Wallet will also be introducing zero gas rights that can be used to offset gas fees for registered users.

Hot vs. Cold Wallet

How much cryptocurrency will you be storing? If you are looking for a long term storage solution for funds you are not intending to touch in the near future, opting for a cold wallet  may be best, as cold wallets are more secure as they are not constantly connected to the internet. This reduces the chances of your wallet being drained if your details are compromised. 

However, if you are intending to constantly interact with DeFi protocols and trade cryptocurrencies, a hot wallet offers a more convenient alternative, as you won’t need to constantly connect your cold wallet to engage in trades. With BOSS Wallet, it’s easy to create multiple wallets for different purposes for better risk management. You could create a wallet for airdrop farming, and another for yield farming on specific protocols. With BOSS Wallet, you only need to manage and safely store one secret recovery phrase to manage all your assets on the platform, as this secret recovery phrase can be used to generate multiple wallet addresses for all supporting chains based on their standards. 

While BOSS Wallet only offers hot wallets at time of writing, there are future plans to introduce a cold wallet as well. That way, you’ll be able to enjoy the best of both worlds by enjoying the added security of a cold wallet for your long term holdings, while you can use BOSS Wallet’s software wallet for trading cryptocurrencies. 

Crypto Exchange Features: Swapping and Bridging Assets

Most centralized exchange custodial hot wallets come with crypto exchange services; however, these are often limited to the exchange’s trading platform. If you are using a non-custodial hot wallet, many of them offer swaps and bridges, but choosing the most efficient route while ensuring that you have the native coins needed to pay for transaction fees can be challenging. 

With BOSS Wallet, you can easily use its powerful aggregator to discover the best price for any swap across over 20 networks, 400 DEXs, and 20 cross-chain bridges. While BOSS Wallet charges a fee of 0.3% to 0.5% per swap (to support ongoing development on the platform), it’s still cheaper than other wallets like MetaMask, which charges 0.875% per swap.

BOSS Wallet’s Gas Pool lets you use USDT to pay for gas fees. This means you won’t need to hold a variety of native tokens for cross-chain swaps; instead, you can deposit USDT and other supported cryptocurrencies into the Gas Pool, and BOSS Wallet will convert it to the required tokens to cover the gas fees for your swap. 

BOSS Wallet Gas Abstraction With USDT

We’ve briefly covered BOSS Wallet’s Gas Abstraction feature. Now, let’s take a closer look at how it works and how it makes transactions much easier by letting users pay gas fees with USDT. 

Gas abstraction enables smart contracts to abstract away the complexity of gas fees and gas management of the user, by removing the complexities around acquiring gas tokens, allowing them to use tokens they already hold to pay for transaction fees.

BOSS Wallet’s Gas Pool feature was developed to reduce the friction for new crypto users to move to on-chain transactions. In the past, users would need to figure out how to acquire the needed native tokens for any transactions, increasing the learning curve while potentially reducing the privacy of their cryptocurrency wallet. With BOSS Wallet’s multi-chain Gas Pool, users can now deposit supported cryptocurrencies, including USDT, to the Gas Pool to pay for cross-chain transactions. 

When a user wants to initiate a transaction on any of BOSS Wallet’s supported 90 chains, the Gas Pool will judge the gas fee to be paid and ensure there are sufficient assets in the user’s Gas Pool to pay the transaction fee, while choosing the simplest signature method to minimize the cost of gas fees. 

Upon registering as a user on BOSS Wallet, you’ll also receive between 20 USDT in Gas Pool quota, so you can transfer assets on BOSS Wallet with 0 gas fees!

How to Buy USDT On Boss Wallet

BOSS Wallet makes it easy for you to buy, store and manage your USDT across multiple chains.

To get started, you can either create a new wallet on the platform or import an existing wallet. 

To  create a new wallet, you can click Create a New Wallet and create your six-digit PIN, which is used to manage accounts. It is also used to manage your secret recovery phrase and private keys. Always record and store your secret recovery phrase offline, ideally on crypto steel to protect against accidental damage. 

If you already have an existing wallet that you would like to import to BOSS Wallet, you can choose Import an Existing Wallet and enter your secret recovery phrase or private key to port your assets to your BOSS Wallet.

As there are multiple variants of USDT based on the blockchains they are available on, you’ll first need to identify the right chain.

On your BOSS Wallet homepage, click Add Crypto at the bottom of the page and search for USDT. After choosing the chain you are intending to purchase USDT on (e.g. Ethereum), it will now be added to your homepage.

To buy USDT on BOSS Wallet, click into USDT token details and click Buy. Select your currency (e.g. USD), and enter the amount of USDT you would like to buy. After that, choose your payment method (e.g. Simplex). You can then preview your transaction details, and proceed to payment. 

Once payment is received, you’ll receive USDT from your selected chain in your BOSS Wallet.

Conclusion

As the most widely available stablecoin, USDT is a key part of your cryptocurrency portfolio. It can be used to swap for almost any cryptocurrency on any chain, while offering you an easy way to hold value in between trades. Moreover, with BOSS Wallet’s Gas Pool and inbuilt DEX aggregator, you can even use USDT to pay for gas fees on 90 chains, without needing to acquire the necessary native tokens. 

This article is only for information and education purposes, and should not be taken as financial advice. Always do your own research before using any crypto protocols and store your secret recovery phrase safely offline.