As Bitcoin reached new highs last year, sparking significant market excitement, many new investors are considering entering the cryptocurrency space. Among the most widely used digital assets is USDT, a stablecoin issued by Tether Limited. While we've previously discussed how to purchase USDT, it's important to note that USDT exists on multiple blockchain networks. The TRC20 version of USDT, based on the Tron network, is particularly popular due to its low transaction fees, making it ideal for transfers.
This guide will walk you through the process of acquiring TRC20-USDT (as opposed to the Ethereum-based ERC20 version) and introduce some recommended wallets for personal storage. If you're looking to purchase TRC20-USDT, this article will provide valuable insights.
Understanding TRC20-USDT (Tether) and Its Advantages
Tether's USDT dominates the stablecoin market in terms of liquidity and market capitalization, often serving as a safe haven for cryptocurrency traders during market volatility. USDT is supported on several blockchain networks, including:
- Omni
- Ethereum (ERC20)
- Tron (TRC20)
- EOS
- Liquid Network
- Algorand
Among these, the Ethereum-based ERC20 standard is the most commonly used, followed by Omni and then TRC20. However, the Ethereum network currently suffers from extremely high gas fees, sometimes costing thousands of yen for a single transaction. This makes small-scale investing impractical, as fees can consume a significant portion of the transfer amount.
In contrast, TRC20-USDT transactions on the Tron network cost as little as 1 TRX, effectively making transfer fees negligible. This cost efficiency has made TRC20-USDT the preferred choice for peer-to-peer (P2P) transactions and small-scale trading.
How to Acquire TRC20-USDT and Important Considerations
There are two primary methods for obtaining TRC20-USDT:
- Exchanging for it on a platform like Binance
- Using a TRX-dedicated wallet to swap tokens
For most users, purchasing USDT on a major exchange like Binance and then withdrawing it to a personal wallet via the TRC20 network is the most straightforward approach. Since Japanese exchanges typically do not support direct USDT trading, using a global exchange is generally necessary.
Once you have acquired USDT, the next step is to transfer it to a personal wallet that supports TRC20 tokens. For mobile users, Trust Wallet is a highly recommended option due to its user-friendly interface.
Important Note: When adding a USDT wallet in Trust Wallet, ensure you select the TRC20 version, as multiple variants are available.
After adding the wallet, copy the receiving address (which begins with a "T") and register it in your exchange's withdrawal address book. On Binance, this is done under Security > Address Management. Select USDT-TRC20 as the network, assign a recognizable label, and submit the address.
Transferring TRC20-USDT from Binance to a Personal Wallet
With the address registered, you can now withdraw your USDT. The critical step here is selecting the correct network—always choose TRC20. After confirming the transaction via Google Authentication or email code, the transfer will be processed. Binance supports instant withdrawals, so funds should arrive within minutes.
Post-Transfer Considerations for TRC20-USDT
A key point to remember is that while Binance deducts fees in USDT for TRC20 withdrawals, personal wallets like Trust Wallet require TRX (Tron's native cryptocurrency) to pay for network fees when sending TRC20-USDT elsewhere. Therefore, if you plan to move funds from your personal wallet frequently, ensure you have a small amount of TRX on hand. TRX is relatively inexpensive, so keeping a reserve is advisable.
In summary: Binance handles TRX fees for withdrawals, but personal wallets require TRX for outbound transfers.
Recommended Wallets for Managing TRC20-USDT
While Trust Wallet is an excellent mobile option, other wallets also support TRC20 tokens. For those who prefer desktop management, Trust Wallet is not suitable as it is mobile-only. In such cases, TronLink is a robust alternative, offering both browser extension and mobile app versions.
However, it's important to note that TronLink primarily supports the Tron network. If you hold assets on other blockchains, you may need additional wallets, as most exchanges have limited support for TRC-network withdrawals. For users exclusively dealing with TRC20-USDT, TronLink is sufficient. But for managing a diverse portfolio, Trust Wallet might be more versatile.
To simplify:
- Frequent computer users: Consider TronLink
- Mobile-only users: Trust Wallet is ideal
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Effectively Utilizing TRC20-USDT
Although TRC20-USDT currently has a smaller market share compared to ERC20-USDT, its low transaction costs make it highly attractive. As more platforms adopt TRX, demand for TRC20-USDT is likely to grow.
With Ethereum gas fees reaching exorbitant levels—sometimes nearly ¥5,000 per transfer—the affordability of TRC20 transactions offers a practical solution. In the world of cryptocurrencies, transaction fees are akin to bank transfer costs; paying thousands of yen per transaction is unsustainable for regular use.
As P2P trading continues to expand, TRC20-USDT is expected to play an increasingly important role. Now is an excellent time to familiarize yourself with acquiring and using this efficient stablecoin.
Frequently Asked Questions
What is TRC20-USDT?
TRC20-USDT is a version of Tether's USDT stablecoin that operates on the Tron blockchain. It offers significantly lower transaction fees compared to its Ethereum-based counterpart, making it ideal for frequent and small-scale transfers.
How do I avoid paying high fees when transferring USDT?
By using the TRC20 network for USDT transfers, you can minimize costs. Always ensure both sending and receiving platforms support TRC20, and select the correct network during withdrawal to avoid errors or loss of funds.
Why do I need TRX in my wallet to send TRC20-USDT?
TRX is the native cryptocurrency of the Tron network, used to pay for transaction fees. While exchanges like Binance absorb this cost for withdrawals, personal wallets require you to hold TRX to authorize and process outbound transfers.
Can I store TRC20-USDT on any wallet?
No, the wallet must explicitly support the TRC20 standard. Popular options include Trust Wallet (for mobile) and TronLink (for desktop and mobile). Always verify support before transferring.
Is TRC20-USDT as secure as other versions?
Yes, TRC20-USDT operates on the secure Tron blockchain. However, always use reputable wallets and enable all security features, such as two-factor authentication, to protect your assets.
What happens if I send TRC20-USDT to an ERC20 address?
Sending tokens to an incompatible address may result in permanent loss. Always double-check the network and address type before confirming any transaction.