Storing USDT off exchange.

[mikeywith]

a member on my Local board asked if he could store USDT off exchange, and I made this small/simple guide in my Local language and decided to translate it to English just in case someone else might be looking for the same thing, I am also not sure if this is the right section or i should move it somewhere else.



For some reason you might want to exchange your BTC  to USDT and the most common way to accomplish this would be sending BTC to an exchange like Binance then selling BTC for USDT

But what if you want to hold your own funds?


First of all you need to know that USDT runs on two different platforms/Blockchains , one is Ethereum another one is OmniLayer, the latter is what most exchanges use.

so in order to store /send / receive  USDT the OmniLayer version, you need a wallet the supports OmniLayer , I will use Coinomi for this example ( Supported on both Android and IOS)


1- Download , Run the wallet ( pretty self-explanatory)

2-Click on +Tokens



3-Chose OmniLayer > TetherUS / USDT




At this point you should see the 2 coins/tokens added to your wallet like so





you will also notice that the 2 have the same BTC address


-USDT



-OmniLayer




Think of it as having an ETH address and an ERC20 tokens where both have the same address but show different balances.

now in order to send USDT to an exchange or another USDT wallet, you must have some BTC in Omnilayer , just like Gas in ETH.

The things I have tried

-Receiving USDT from Binance.
-Sending USDT to binance.
-Receving BTC on the Omnilayer BTC address.
-Sending BTC from OmniLayer address.


The other cool thing about this that you can actually exchange your BTC to USDT without having to use an exchange, Coinomi has an exchange feature where it can convert your BTC to USDT and vice versa , but you need to make sure the BTC is in your OmniLayer and not the normal BTC address.



Source of information used and more details can be found here > https://coinomi.freshdesk.com/support/solutions/articles/29000020077-all-about-omnilayer-and-tether-usdt-

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[crairezx20]

Is it OK if I transfer USDT from Omnilayer wallet in Coinomi to USDT in Exodus wallet? or you should use a wallet which is Omnilayer supported?

How about zelcore wallet it also has USDT can I transfer my USDT from coinomi to Zelcore wallet?

[OmegaStarScream]

Is it OK if I transfer USDT from Omnilayer wallet in Coinomi to USDT in Exodus wallet? or you should use a wallet which is Omnilayer supported?

How about zelcore wallet it also has USDT can I transfer my USDT from coinomi to Zelcore wallet?

There are two versions of Tether I believe, one based on bitcoin's blockchain (omni token) and another one on Ethereum's (ERC20 Token). If the wallets you're referring to generate a bitcoin address, then you should be fine. If it's an Ethereum address, you won't be able to transfer.

[bitmover]

I know in some cases it might be interesting for some people who live in different countries to store some USDT in your personal wallet.
However this is not safe, as USDT may have problems in the future.

You may be storing tether safetly in your wallet and they may be worth nothing in the future. I wrote about it here:

Tether as Debt Security. And Tether Rich List

[Crypto Girl]

I know in some cases it might be interesting for some people who live in different countries to store some USDT in your personal wallet.
However this is not safe, as USDT may have problems in the future.

You may be storing tether safetly in your wallet and they may be worth nothing in the future. I wrote about it here:

Tether as Debt Security. And Tether Rich List

Moreover, coinomi isn't secured anymore with its recent "backdoor" issue so I guess it's better to find alternative wallet.

The other cool thing about this that you can actually exchange your BTC to USDT without having to use an exchange, Coinomi has an exchange feature where it can convert your BTC to USDT and vice versa , but you need to make sure the BTC is in your OmniLayer and not the normal BTC address.

They're actually cool and convenient to use though, perhaps I was a fan of coinomi not until the issue.

[illyiller]

You may as well just hold USD on an exchange like Coinbase or Kraken. Holding USDT in your own wallet doesn't eliminate the custodial risk. You're still exposed to Tether's third party risk. They could have bank accounts seized or otherwise lose the money at any time. Then the USDT in your wallet will plummet in value.

Moreover, coinomi isn't secured anymore with its recent "backdoor" issue so I guess it's better to find alternative wallet.

Source? Are you talking about the Google spell check vulnerability? Wasn't that patched months ago?

[bitmover]

Moreover, coinomi isn't secured anymore with its recent "backdoor" issue so I guess it's better to find alternative wallet.

I don´t agree with this. That backdoor was already patched and it happened only in the desktop version of the wallet (which is very new, released few months ago. While coinomi is a very old wallet, since 2014, one of the first multicurrency wallets).

Official Statement on Spell Check findings

On 22 Feb 2019 we were contacted by Warith Al Maawali via our Support Helpdesk regarding a security vulnerability in our Desktop wallets. We immediately flagged this request as High Priority and we started investigating this issue. The report said that seed phrases were being sent over to Google in plain text due to a built-in spell-check functionality in Desktop wallets and that there was a wallet hacked due to this vulnerability.

Our engineers confirmed that spell-check functionality was indeed enabled for the Desktop wallets only — the mobile apps were not affected by this.
.....

We’ve had zero reports of hacked Desktop wallets so far other than Warith Al Maawali’s, which however cannot be sustained by the underlying facts.
https://medium.com/coinomi/official-statement-on-spell-check-findings-547ca348676b

[pooya87]

you should also know that the wallet you are suggesting here (Coinomi) is NOT open source so you are putting your fate in the hands of something that is not publicly reviewed and can do anything that the developer wants. that google spellckecing vulnerability that leaked your secret information was just one of many possible downsides of using such a wallet.

[figmentofmyass]

Moreover, coinomi isn't secured anymore with its recent "backdoor" issue so I guess it's better to find alternative wallet.

I don´t agree with this. That backdoor was already patched and it happened only in the desktop version of the wallet (which is very new, released few months ago. While coinomi is a very old wallet, since 2014, one of the first multicurrency wallets).

that fiasco still indicates that coinomi is a bad choice in terms of security. the degree of stupidity (or malice) required to send user wallet seeds to google in plaintext is mind-boggling.

if the wallet were open sourced, auditing developers would have instantly caught such a stupid vulnerability. it just goes to show you why it's always risky to use a closed-source wallet.

[PrimeNumber7]

Is it OK if I transfer USDT from Omnilayer wallet in Coinomi to USDT in Exodus wallet? or you should use a wallet which is Omnilayer supported?

How about zelcore wallet it also has USDT can I transfer my USDT from coinomi to Zelcore wallet?

There are two versions of Tether I believe, one based on bitcoin's blockchain (omni token) and another one on Ethereum's (ERC20 Token). If the wallets you're referring to generate a bitcoin address, then you should be fine. If it's an Ethereum address, you won't be able to transfer.

There are actually four versions of USDT (tether). There are also implementations on the EOS and TRON blockchains.

IMO, you should not use the onmi layer implementation because of the high fees on the bitcoin network. I would personally recommend using the ERC-20 ETH implementation, as the fees are lower, and there are a number of ERC20 compatible wallets and block explorers that can be used to store and track USDT.

[bitmover]

IMO, you should not use the onmi layer implementation because of the high fees on the bitcoin network.

Fees are not that important if you are storing high amounts in long term. It´s more important to chose the most reliable plataform (which is, in that case, bitcoin).
If you are storing 1000 USD in USDT, saving 0,4 usd in fees to store in EOS or ETH chai is simple irrelevant.

[mikeywith]

I think some members think of this topic as an endosmement to use Coinomi or USDT in the first place, which is exactly not the case here.

We could talk for days about the reliability of Coinomi and/or USDT but then that is beyond the scope of this topic. I personally use Coinomi for small amounts of everyday's stuff, i buy/sell usdt only for day trading purposes on Binance, but i sure as hell won't hodl usdt for the sake of it.

[jademaxsuy]

More and more coins now are having some developments.and USDT is one of them. Seeing now that USDT can be stored OFF ina exchange make me believe that it is worth it to buy more USDT. This is the only crypto also that can be minimally influence by bitcoin market price. Usually if there are huge market price fluctuation all.over the market then choosing USDT for a moment taking things back to normal when market stabilizes with fluctuations. It is safe to store money using USDT and it more become likely because we can now store USDT offline.

[crairezx20]

Moreover, coinomi isn't secured anymore with its recent "backdoor" issue so I guess it's better to find alternative wallet.

Source? Are you talking about the Google spell check vulnerability? Wasn't that patched months ago?

I think this is what his talking about https://www.coindesk.com/tether-claims-30-million-stable-token-stolen-attacker
the old news about stolen 30$ million tether transfer unauthorized Bitcoin address.

This is big news that I heard on the past about tether.

[Malvika_sitlani]

Now you can deposit and withdraw your USDT by using both ERC20 based address and Omni based address. Some exchange is only accepted ERC20 addresses. You can store your USDT in trust wallet,imtoken, myether wallet, and metamask. Make sure which address you are using and then choose the wallet for it.

[Velkro]

exchange your BTC  to USDT and the most common way to accomplish this would be sending BTC to an exchange like Binance then selling BTC for USDT
First of all you need to know that USDT runs on two different platforms/Blockchains , one is Ethereum another one is OmniLayer, the latter is what most exchanges use.
so in order to store /send / receive  USDT the OmniLayer version, you need a wallet the supports OmniLayer , I will use Coinomi for this example ( Supported on both Android and IOS)

This is complicated too much for me. I mean i can understand it if i want, but i don't want to. World is simple i have 0.1 BTC or i don't. If someone putting ways of taking my 0.1 BTC for some token named USDXXXX which have complicated mechanics and is good in this or that i sense scam right away.
Why in the world someone would want to give away their BTC accepted worldwide for a token noone use or is accepted in one exchange.
I wouldn't.

[mikeywith]

This is complicated too much for me. I mean i can understand it if i want

Judging by your post it makes sense that you don't understand, maybe it is too complicated for you and that is okay, but talking about things you don't fully understand is stupid at it's best and the rest of your post is useless off-topic bullshit.

Have a nice day.

Just for the record binance migrated from Omni Layer to ERC20 , so technically any ETH wallet will suffice at this point.