8 Best Tether Wallets in 2023 – Safest USDT Wallets Compared

Tether (USDT) operates on the ERC20 standard, meaning investors have dozens of wallets to choose from. This includes both custodial and non-custodial storage, across mobiles, desktops, and hardware devices.

This guide compares the 8 best Tether wallets for 2023. Read on to discover the top ADA wallets for features, security, usability, fees, and more.

What is a Tether Wallet? The Basics Explained

After investing in Tether, users must find a suitable wallet. This keeps the USDT tokens safe and allows users to engage with the blockchain. The level of security and convenience offered by Tether wallets varies considerably.

For example, most Tether wallets allow investors to send and receive tokens. This is executed via the Ethereum blockchain, as Tether follows the ERC20 standard. That said, the best Tether wallets also support trading features. This allows investors to swap USDT with other cryptocurrencies or cash out for fiat money.

Some Tether wallets also connect to Web 3.0 dApps. This enables investors to earn passive income on their USDT tokens. Considering that USDT is pegged to the US dollar, investors can generate yields without worrying about market volatility.

Investors will need to choose from a non-custodial or custodial Tether wallet. Custodial wallets look after the user’s private keys and typically offer security features like cold storage and two-factor authentication. Non-custodial wallets give investors full control of their private keys, meaning they are responsible for keeping the USDT tokens secure.

Another consideration is the type of Tether wallet. For instance, software wallet providers offer a mobile app, desktop software, and/or browser extension. While hardware wallets come as physical devices. Each Tether wallet type comes with its own pros and cons, which we discuss in more detail further down in this guide.

Why You Need a USDT Wallet

Now let’s take a closer look at why Tether investors need a suitable USDT wallet.

Keep USDT Investments Safe

The main reason for getting a Tether wallet is to keep the USDT tokens safe. Similar to a bank account, Tether wallets ensure that only the USDT owner has access to the tokens.

After all, not only do USDT tokens have value, but they can be cashed out to US dollars at any time. As noted above, custodial wallet providers keep the USDT tokens and private keys safe on the user’s behalf. This will likely appeal to beginners.

On the other hand, non-custodial providers supply users with their private keys when setting the wallet up. This means the wallet user is responsible for keeping the USDT tokens safe.

Send and Receive USDT

Tether wallets also allow users to engage with the blockchain. As one of the best ERC20 tokens, USDT operates on the Ethereum network.

This means that users can send and receive USDT on a wallet-to-wallet basis, with transactions taking just seconds.

Do note that when sending USDT to another person, GAS fees need to be paid in ETH. We explain how this works in more detail further down.

Earn Income on USDT Investments

USDT is one of the best cryptocurrencies to buy for earning passive income. This is because USDT is a stablecoin, so users can generate a yield without the volatility associated with conventional cryptocurrencies.

And one of the best ways to achieve this is directly within a Tether wallet. For example, Trust Wallet and MetaMask connect to the dApps like Uniswap and Aave, which offer competitive yields on USDT staking and yield farming. While Binance offers USDT savings accounts with flexible terms.

Buy, Sell, and Trade USDT 

The best Tether wallets allow users to buy, sell, and trade USDT tokens. This prevents the need to transfer the tokens to a crypto exchange.

The eToro wallet, for example, connects to its regulated exchange. This allows investors to trade cryptocurrencies securely and even cash out for fiat money.

Best USDT Wallets Reviewed

Still unable to separate the best wallets for Tether? Below, we review the 8 best Tether wallets for 2023.

We discuss a variety of custodial and non-custodial providers, covering mobile, desktop, and hardware devices. This ensures that there is a Tether wallet type to suit all requirements.

1. eToro – Overall Best Tether Wallet for Investors  

eToro is the number one Tether wallet for both short and long-term investors. It comes as a mobile app for iOS and Android and is completely free to download and use. eToro designed its crypto wallet with beginners in mind, so is ideal for those without any prior experience in this space.

We also like that the eToro wallet is super-secure. For example, it keeps most USDT balances in cold storage, away from hacking risks. It also offers two-factor authentication, which is required every time users log into their wallet accounts. What’s more, the eToro wallet app is licensed by the GFSC.

The brokerage side of eToro is also regulated, including licenses with FINRA, CySEC, ASIC, and FCA. This ensures that investors can safely store their USDT tokens while also accessing trading features. For example, the eToro exchange supports over 90 cryptocurrencies, including some of the best altcoins. This includes Shiba Inu, Ethereum, Cardano, Solana, and Aave.

Trading fees are competitive at 1% per slide. There are no fees to store cryptocurrencies in the eToro wallet, but charges will apply when sending funds. This is simply charged at the real-time blockchain fee, as quoted by the Ethereum network. We also like that USDT investors can access passive trading tools. For example, the eToro wallet offers copy trading and smart portfolios.

The latter offers professionally managed cryptocurrency portfolios that are rebalanced by eToro. While copy trading allows users to mirror the cryptocurrency trades of an experienced pro. The eToro wallet also comes with in-built token swaps. This supports over 500 cryptocurrency pairs and is available 24/7. Moreover, the eToro wallet also supports fiat money payments.

This includes debit/credit cards and e-wallets like Neteller and PayPal. We also found that the eToro comes with in-built staking tools. However, USDT is not currently supported. Instead, only Ethereum, Cardano, and Tron can be staked. Nonetheless, eToro offers the overall best Tether wallet for investors of all sizes, especially beginners.

Cryptoassets are a highly volatile unregulated investment product.

2. Trust Wallet – Non-Custodial Wallet for Securing and Trading USDT Tokens     

Trust Wallet is a leading non-custodial wallet that comes as a mobile app for iOS and Android. Desktop users are also catered for, with Trust Wallet recently launching its Chrome browser extension. Both options enable users to take full control of their USDT investments.

This is because Trust Wallet provides users with their 12-word backup passphrase. Only the user has access to these credentials, meaning Trust Wallet offers a completely decentralized way to store USDT. The wallet is secured by the user’s chosen PIN, although fingerprint ID is also supported. No other security features are available, so Trust Wallet is best suited for experienced investors.

Nevertheless, our Trust Wallet review found that this is one of the best Tether wallets for earning income. While its in-built staking tool doesn’t support the Ethereum network, the wallet does connect to dApps. This enables investors to seamlessly earn yields via Uniswap, SushiSwap, Aave, and other leading DEXs.

Moreover, Trust Wallet also comes with an in-built token-swapping tool. This removes the need to use a DEX when trading USDT for other cryptocurrencies. In addition to Tether, Trust Wallet supports millions of other cryptocurrencies and NFTs. This includes some of the best emerging cryptocurrencies on the ERC20 and BSC standards.

3. MetaMask – Popular Hot Wallet App and Browser Extension With Over 30 Million Users   

MetaMask is one of the best Tether wallets for hot storage. This means that the USDT tokens remain online at all times, making MetaMask ideal for short-term traders and investors. Although hot wallets come with reduced security, MetaMask is considered one of the safest options in the market.

For example, private keys are encrypted when shown to the user, ensuring that nobody else has access to the wallet credentials. Users can also secure their MetaMask wallet with a PIN or password, depending on the chosen device type. MetaMask supports iOS and Android apps, as well as browser extensions. All supported wallet types are completely free to download.

After setting MetaMask up, users will be presented with their ERC20 deposit address. This supports Tether, Ethereum, Shiba Inu, and all other ERC20 tokens. A selection of other network standards can be added to MetaMask. This includes Optimism, Binance Smart Chain, Polygon, Arbitrum, and Avalanche.

In terms of features, MetaMask has an in-built tool for swapping USDT tokens. Do note that MetaMask charges 0.875% for this service. The cheaper option is to connect MetaMask to a dApp and complete the token swap there. MetaMask also offers an in-built staking tool, but this doesn’t support USDT. Finally, MetaMask also supports NFTs on the ERC20 standard.

Here’s our complete MetaMask review.

4. Binance – Convenient Tether Web Wallet for Storing, Trading, and Earning USDT     

One of the best Tether wallets for convenience is Binance. The world’s biggest crypto exchange offers a simple web wallet that comes packed with features. This includes the ability to trade hundreds of cryptocurrencies at 0.1% per slide. The Binance wallet also supports an ‘Earn’ feature that covers multiple yield tools.

For example, Flexible USDT savings accounts currently yield an APY of 1.67%. For balances up to 500 USDT, an additional 1.5% is offered. Another option is to deposit USDT into a yield farming pool. USDT can be paired with many cryptocurrencies, including TUSD, USDC, and BUSD. The Binance wallet also allows users to stake USDT, with APYs currently yielding 0.9%.

Another notable feature of this wallet provider is USDT perpetual. This allows users to trade USDT-based derivatives with leverage. BTC/USDT, for example, can be traded with leverage of 20x. In terms of security, Binance is a custodial wallet provider. This means users do not have access to their private keys. Instead, Binance keeps the USDT funds safe on behalf of investors.

Most USDT tokens are stored offline in cold wallets. Accounts are protected by two-factor authentication, as well as IP and device whitelisting. All outgoing transactions must be confirmed via SMS and email, offering an extra layer of security. Finally, the Binance wallet is also accessible via a mobile app. While iOS and Android are both supported, the Binance wallet app comes with fewer features.

5. Coinbase Wallet – Decentralized Wallet App for Tether and Thousands of Other Cryptos     

Coinbase Wallet is a decentralized wallet app for iOS and Android. The wallet is not connected to the main Coinbase exchange. And hence, users retain full control of their USDT tokens and private keys. Regarding the latter, private keys are provided as a 12-word passphrase.

This is encrypted on the user’s smartphone, ensuring that only the wallet owner has access. In addition to Tether, the Coinbase Wallet supports thousands of other cryptocurrencies. This includes everything from Bitcoin and Ethereum to BNB and Polygon. The Coinbase Wallet doesn’t charge any fees to receive or store USDT, nor does it add markups on GAS.

The Coinbase wallet seamlessly connects to Web 3.0 dApps like Aave and SushiSwap. This enables USDT holders to generate a yield on their idle tokens. Coinbase is also suitable for storing and viewing NFTs. In terms of usability, the Coinbase Wallet is perfectly suitable for beginners. Navigating through the different features is simple and hassle-free, providing a great user experience.

6. OKX Wallet – One of the Best Crypto Wallets for High USDT Yields  

OKX offers one of the best Tether wallets for earning high-interest rates on idle USDT tokens. This is because OKX has developed a bridge aggregator that supports over 200 DEXs. Users simply need to click on USDT, and OKX will display the best APYs in the market.

For example, currently, users can earn an APY of 11.71%, which is facilitated by Tender. After that, the highest APY is 8.48%, provided by Aave. Alternatively, the OKX Wallet enables users to earn income by adding USDT to a liquidity pool. Currently, the highest APY is paid on CRU/USDT at almost 22%. We also found that the OKX Wallet offers USDT savings accounts.

This pays 1.43% on a flexible basis, allowing investors to withdraw their USDT at any time. In addition, the OKX Wallet also offers in-built token swaps. Once again, its bridge aggregator tool will secure the best exchange rate in the market. While the OKX Wallet doesn’t support Bitcoin, it is compatible with 15 blockchain networks. This includes Ethereum, Arbitrum, Binance Smart Chain, and Fantom.

7. Trezor – Safest Way to Store Large USDT Balances     

We found that the best USDT wallet for safety and security is Trezor. While this option won’t appeal to short-term traders, Trezor offers solid security features for those with large balances. This is because Trezor is a hardware wallet that offers 24/7 cold storage.

In fact, the private keys are encrypted on the device, so are never vulnerable to remote hackers. Moreover, a PIN needs to be entered on the device to make outgoing transactions. The PIN can be any combination of between four and 50 digits. When setting Trezor up, users are presented with their backup passphrase. This is either 12 or 24 words, depending on the model.

The Trezor Model One is the entry-level option, costing $69. This comes with a two-button pad and support for USB type A. The Trezor Model T is an advanced model that retails for $219. This comes with support for USB type C and a touchscreen interface. Both models support over 1,000 cryptocurrencies and multiple networks. This includes Bitcoin, Ethereum, and Binance Smart Chain.

8. MyEtherWallet – Great Tether Wallet for Storing Multiple ERC20 Tokens     

MyEtherWallet is a non-custodial hot wallet that was launched in 2015. It supports Tether, Ethereum, and all other ERC20 tokens. MyEtherWallet is a mobile wallet accessible via an Android and iOS app. There is also support for web browsers, but this is provided via a third-party extension.

MyEtherWallet does not charge fees for receiving or storing Tether. Nor does it add any markups on outgoing transactions. In addition to cryptocurrencies, MyEtherWallet also supports ERC71 NFTs. In fact, it also has its own collection of NFTs that back previous ERC20 transactions. We also like that MyEtherWallet supports Aave.

This enables users to swap USDT tokens as well as earn interest. That said, MyEtherWallet does not directly support any other DEXs. Moreover, this is one of the few Tether wallets that does not support WalletConnect. This means that users will be limited in what Web 3.0 applications can be accessed. Another drawback is that other network standards are not supported, such as Bitcoin and XRP.

Our reviews of the best USDT wallets covered a variety of options. This includes a choice between custodial and non-custodial storage, as well as multiple device types. We also focused on USDt wallets with additional features, such as trading and staking.

Read on to learn more about how we ranked the best Tether wallets for 2023.

Safety and Security 

The level of security offered by Tether wallets will vary widely. This is largely dependent on the type of Tether wallet being used.

For example, the safest and most reputable custodial wallet is eToro, as it is regulated and comes packed with security features. The latter includes two-factor authentication, cold storage, and a full-time risk management department.

Non-custodial options like Trust Wallet and MetaMask offer fewer security features. In fact, these wallets are only secured by a password. That said, non-custodial Tether wallets provide users with their private keys, which will appeal to many investors.

Supported Network Standards

Tether is a stablecoin, so it doesn’t offer the prospect of capital gains. As such, many Tether holders also own other cryptocurrencies, such as Bitcoin, Ethereum, and Dogecoin.

Those with multiple cryptocurrencies should consider a Tether wallet that supports other network standards. Trust Wallet stands out here, with the wallet supporting millions of digital assets on more than 70 blockchains.

Custodianship

Investors need to choose between a custodial or non-custodial Tether wallet. Put simply, the choice boils down to who is responsible for safeguarding the USDT tokens.

• Custodial wallets do not provide users with their private keys. This is because custodians are responsible for keeping the USDT tokens safe.
• Non-custodial wallets do provide users with their private keys. This means only the USDT owner can access the wallet and authorize transactions.

Investors should choose wisely when exploring USDT custodianship. Ultimately, both options come with pros and cons.

Additional Features and Tools

The best Tether wallets come packed with features.

For example:

• The eToro wallet connects to its regulated and low-fee exchange. This allows users to trade over 90 cryptocurrencies in a safe and convenient environment.
• Trust Wallet has an in-built tool that allows users to swap USDT tokens without going through an exchange. This tool is offered on a fee-free basis.
• Binance has in-built yield tools, allowing investors to seamlessly earn interest on their USDT tokens. This includes USDT savings accounts with flexible terms, as well as staking and yield farming.

The above features offer a great user experience, removing the need to use additional platforms or exchanges.

Pricing

Most Tether wallets are free to obtain. The exception here is Trezor and other hardware wallets, which must be purchased. The basic and advanced Trezor models retail for $69 and $219, respectively.

Rarely do Tether wallets charge fees for storing or receiving tokens. But GAS fees will always apply. This needs to be paid in ETH, and the exact fee is determined by network conditions.

That said, we found that Binance adds a markup on USDT transactions, as it charges a flat fee that is above the network rate. This isn’t the case with most other Tether wallets.

Types of Tether Wallets

In addition to exploring custodianship, investors should also consider the type of Tether wallet that is most suitable.

This is generally a choice between software, hardware, and paper wallets – which we discuss below.

Software Wallet

Software wallets (also called hot wallets) are the most convenient option in the market. They always remain online and can be accessed via an app, desktop software, and/or web browser.

Not only are software wallets ideal for storing USDT tokens, but also trading them. For example, the eToro wallet app allows investors to swap tokens across more than 500 pairs.

Software wallets also make it simple to earn interest on idle USDT tokens. For example, Trust Wallet, MetaMask, and Coinbase Wallet are compatible with all dApps on the Ethereum network. dApps like Uniswap and SushiSwap support token swaps, staking, and liquidity pools.

But do remember that software wallets are vulnerable to hacking attempts and scams. This is because software wallets are always online. That said, custodial software wallets like eToro and Binance keep most client tokens offline in cold storage.

Hardware Wallet

The safest way to store and manage USDT investments is via a hardware wallet. This ensures the tokens are kept away from the internet and, thus – hackers.

But hardware wallets make it inconvenient to transfer USDT tokens. This is because users need to enter their PIN on the device to authorize transactions.

Hardware wallets also make it cumbersome to earn income on idle USDT tokens. But ultimately, hardware wallets offer unrivaled security, so will appeal to those large USDT holdings.

Paper Wallet

Another option is to store the USDT tokens in a paper wallet.

• Paper wallets have the public address and private keys printed on them
• Users keep the paper wallet somewhere private and safe
• This is a secure option, considering that paper wallets keep the private keys offline at all times
• But paper wallets are inconvenient for transferring funds and do not support yield-earning products

Investors should do their homework when choosing a USDT paper wallet provider. Make sure the private keys can be created while offline. This will ensure the wallet owner is the only one to have access.

How to Get & Use a Tether Wallet

Below, we explain how to get the eToro wallet app, which supports Tether and dozens of other cryptocurrencies.

Step 1: Open an eToro Account

Visit the eToro website and click on ‘Sign Up’. Follow the on-screen instructions by entering some personal information and contact details.

Complete the registration process by uploading some ID. This is a legal requirement because of eToro’s regulated status. That said, once the account is verified, users can access all features offered by the wallet.

Step 2: Download eToro Wallet App

Once the account is opened and verified, proceed to download the eToro wallet app.

There are no fees to download the app, and both iOS and Android are supported.

Once downloaded, open the eToro wallet app and log in. Users will need to enter their username and password.

Step 3: Deposit USDT

The next step is to deposit some USDT into the eToro wallet.

• Click on ‘Crypto’ and select USDT.
• Then, click on ‘Receive’ to reveal the USDT deposit address.
• Click on the ‘Copy’ icon to copy the address to the smartphone clipboard.

Proceed to transfer USDT to the copied wallet address.

Step 4: Send USDT

To send USDT to another wallet address, follow these steps:

• Click on the ‘Crypto’ icon and select ‘USDT’
• Then, click on the ‘Send’ button.
• Paste in the USDT wallet address for the receiver
• Type in the number of USDT tokens to transfer and confirm

Alternatively, the eToro wallet app also comes with a QR code scanner. This removes the risk of entering the receiver’s wallet address incorrectly.

Conclusion

In summary, many considerations need to be made when researching the best Tether wallets. Not only in terms of custodianship but the wallet type and preferred device.

Moreover, USDT holders should also consider what features the wallet offers alongside fees and usability.  Overall, the eToro wallet app is a great fit for beginners.

Not only does it store cryptocurrencies, but it also offers token swaps across over 500 pairs. What’s more, the eToro wallet is regulated and is protected by cold storage and two-factor authentication.

Best of all, eToro takes full responsibility for its users’ tokens and private keys. As such, no prior experience in wallet security practices is required.

Cryptoassets are a highly volatile unregulated investment product.

References

https://trezor.io/compare

https://www.fsc.gi/

https://coinmarketcap.com/rankings/exchanges

https://www.cnbc.com/2022/11/15/how-to-keep-crypto-safe-by-using-cold-storage-hardware-wallet.html

https://ethereum.org/en/developers/docs/standards/tokens/erc-721/

https://coinmarketcap.com/

https://www.finra.org/rules-guidance/rulebooks/finra-rules/2090

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