Difference between BTC/USDT and BTC/USD

[LUCKMCFLY]

Actually when I do my analysis I do them based on BTC / USD, because the USD is the pure currency, USDT has other ingredients so to speak. Although some exchanges have the USD, the USDT is also accepted as the USD, although there are small variations but they are not so visible, however, for those high-renowned traders or investors they will always prefer BTC / USD due to the fact that they can do your direct transfers to preferred banks or those entities that require USD.

[Tytanowy Janusz]

Anyone who thinks that had better double and triple check down their local tax office. In the US and UK at least there is absolutely no difference between moving into USD or USDT. Both are classed as a disposal.

I'll bet there are thousands upon thousands of traders who have unknowingly run up humongous tax bills believing they're somehow immune because it's crypto. Not so. Hopefully they'll get away with it.

What about BTC/ETH trade? Why is it different if they both are crypto/crypto. US and UK crypto law is fucked up

In my country it is like - if you bought crypto for a fiat currency or good (e.g. you sold a washing machine for BTC) in a given accounting year, you enter it as a cost during the settlement. If you have sold for fiat or good currency (e.g. you bought a washing machine with bitcoin) then you give it as profit. Then you pay tax on profit (difference of these values). Its great because if you minted, get from airdrop or whatever you don't need to do anything ... just report it while selling to fiats as income.

But its like that starting from 2019. In 2017 for instance we had to pay 1% TAX (Tax on Civil Law Activities) from each trade and fill sepeare form for that. You bought BTC for USDT (1% tax), ETh for BTC (1% tax), sold ETH for USDT (1% tax). Imagine if you did not through about that and you were daytrader or scalper that day getting 0.2-1% from each trade and paying 2% in taxes (-1% net profit from each trade). Insane.

[davinchi]

There is zero difference during trading period at all. The only difference is, most exchanges that offer USD directly means that you could also withdraw USD as well to your bank account and that is why they offer that, to show you how much you could withdraw.

However the ones that offer USDT or USDC type of stable coins do not allow you to withdraw most of the time which means you are hodling your coins at dollars and not involved in crypto at that moment but you are also not completely out of crypto world neither because you can't withdraw USDT and you will have to get involved again even if it is only to move it to bitcoin to usd to move to your bank account. So, it is about withdrawal more than it is about trading and has zero differences when trading.

[death69]

Thanks for your reply.

Why do you think that some brokers does not have BTC/USD? For example, Binance. They have BTC/USDT and BTC/USDC but not BTC/USD.

Trading with real USD rises more problems which exchange does not want to have. Therefore, Tether is created to solve the problem. One USDT is equal to 1 USD and it is secured by Bitfinex. Dont worry much about this issue cause it wont affect your trading styles.

[Lhaine]

Thanks for your reply.

Why do you think that some brokers does not have BTC/USD? For example, Binance. They have BTC/USDT and BTC/USDC but not BTC/USD.

Because it's easy to use and actually have USD in their exchange you can trade your USDT to USD here https://www.binance.us/en/trade/USDT_USD.

The reason why many exchange doesn't use direct USD conversation is because it will make it difficult for them to have , if you want an easier conversion to USD you should find an exchange that accepted in US like coinbase.

[error08]

Thanks for your reply.

Why do you think that some brokers does not have BTC/USD? For example, Binance. They have BTC/USDT and BTC/USDC but not BTC/USD.

Because it's easy to use and actually have USD in their exchange you can trade your USDT to USD here https://www.binance.us/en/trade/USDT_USD.

The reason why many exchange doesn't use direct USD conversation is because it will make it difficult for them to have , if you want an easier conversion to USD you should find an exchange that accepted in US like coinbase.

does binance not accept crypto purchases using USD or doesn't support BTC/USD? Since late 2019, binance has enabled buying crypto using USD with debit or credit cards.
 and they have BTC/USD pair as well, you can check it below:
https://www.binance.us/en/trade/BTC_USD
https://www.binance.com/en/support/faq/360036928272-How-to-Buy-Cryptos-with-USD
https://support.binance.us/hc/en-us/articles/360046785934-Binance-US-Increases-ACH-Limits-for-USD-Deposits-and-Withdrawals

[jostorres]

Thanks for your reply.

Why do you think that some brokers does not have BTC/USD? For example, Binance. They have BTC/USDT and BTC/USDC but not BTC/USD.

Because USDC and USDT are both cryptocurrencies where USDT is a stable coin which aims to remain 1:1 with USD and issues by Tether Limited. USDC is another stable coin which if I am not are offered by coinbase.

The difference between USD and any stable coin is that while USD is official currency of USA but these stable coins are meant to stay relevant and stable in terms of USD.

Now coming back to why some exchanges do not offer USD markets? That is because they might not have the right means of supporting it like users are not allowed to withdraw and deposit USD so it does not make sense to allow a currency which user cannot withdraw. USDT markets are same though and serves the same purpose. Binance though offers USD/BTC market (I believe for US members) as you may visit here - https://www.binance.us/en/trade/BTC_USD

[Rengga Jati]

These may be the answers:

Main takeaways
Trading volume is much higher on Tether than on fiat USD and this holds true over time.
BTC/USDT markets are far less concentrated than BTC/USD markets.
BTC-USDT and BTC-USD closing prices (cross exchanges) closely mirror each other with very small tracking errors.
BTC-USDT and BTC-USD daily returns display different volatility regimes over time.
Intraday extremes between BTC-USDT and BTC-USD show higher dispersion than the usual close to close measure.

Taken from Tether vs. USD, is a Dollar a Dollar when it comes to trading?

I also ever traded in Chatex, and see what is the difference, pairing with USD and USDT is very different. We can get a higher price when paired with USDT and a lower price in USD. I don't know why but this happens when I was trading there. probably because they are converted directly to the US Dollar currency?

[CryptopreneurBrainboss]

So, it is about withdrawal more than it is about trading and has zero differences when trading.

There could be some difference when trading, I'm speaking about the liquidity on the exchange. While USDT is widely accepted on most exchanges and can be easily access that of the fiat currency can't obviously due to avoiding the regulations from the government. If there's an option to trade both pairs on an exchange, I'll recommend trading with the stablecoin instead of the fiat.

Stablecoin like usdt and usdc can be moved and traded between most exchanges in the industry that supports those coins but that of fiat can be certain since it isn't common among the exchanges, only a few have them as trading pairs on their platform.

[justdimin]

Although some exchanges have the USD, the USDT is also accepted as the USD, although there are small variations but they are not so visible, however, for those high-renowned traders or investors they will always prefer BTC / USD due to the fact that they can do your direct transfers to preferred banks or those entities that require USD.

I actually stopped trading with the USD par since USDT was known to me because USDT can be withdrawn while USD I had to keep as digital balance on the exchange and at times I keep the balance in USD for weeks and it was risky so I can now easily withdraw in USDT and have control over my funds.

Still, not only the USD tether you can use as a stable coin because DAI is also the same price as the USD, but mostly the common pair in exchange is BTC/USDT

A lot of guys answered already and yeah you are right and since you mentioned DAI, I would like to tell you that when traders chose a stable coin the most important factor to keep in mind is the market cap and there is no doubt why USDT is so famous because it has enormous market cap and it gets bigger as more people start using it.

[Ryker1]

Well, there is a difference between ^[BTC/USD] and ^[BTC/USDT] for USD is the fiat currency of the United States while the usdt is a digital token that has an equivalent value with USD. In terms of profit, --there is no difference since they have equal value. However, it is the trader's preference which he will use or if the exchange platform will not allow you to do it then you can may conversion USDT to USD anytime I suggest Binance, Bitfinex or Kraken for these exchanges because they were all tested and has a good reputation but you may still search for other exchange platforms that you may use as long as you will conduct at least a background check on it just not to be scammed.

[noorman0]

Apart from regulatory issues are flexibility and transparency.
USD fiat is not crypto which transactions can be publicly traced. People need a lot of processing to send and confirm between platforms. It also makes it difficult for both parties if something goes wrong.

USDT has been adopted in almost all trading platforms and wallets. The USDT feature has met the standard expectations of crypto users and service devs. With a public transaction trail (blockchain) everyone can see the confirmation status immediately.

[cr1776]

in order not to worry about meeting a series of strict guidelines that would have to be met while maintaining a legal tender. It is also preferable by many traders to not have to worry about reporting each transaction to the tax office for tax purposes. BTC/USDT is crypto/crypto transaction not crypto/Legal tender so potential profit / loss in many jurisdictions is not subject to taxation.

Anyone who thinks that had better double and triple check down their local tax office. In the US and UK at least there is absolutely no difference between moving into USD or USDT. Both are classed as a disposal.

I'll bet there are thousands upon thousands of traders who have unknowingly run up humongous tax bills believing they're somehow immune because it's crypto. Not so. Hopefully they'll get away with it.

Precisely right.  It is critical to know the tax laws that apply to you and not rely on something you read here.  It MAY be right what you read here, but it is much better to know for sure.

[barbara44]

My question, is the any difference (in term of day trading profit) between BTC/USD and BTC/USDT?  

There is no direct difference, but indirectly yes! If the value of the cryptocurrency goes up, the value of fiat currency that is USD will go down. In simpler terms, you could buy 1 BTC for $40  years ago and now you have to pay $15k+ to buy 1 BTC. As long as your BTC-USDT/USD is concerned, you can't buy USD from a digital exchange. You can either convert it or liquidate it.

Good explanation but I was wondering what is the difference between USD and USDT then in terms of market because USDT is going to be always 1:1 with USD and hence both the markets are same technically.

There is a lot of confusion around USD and USDT but the difference is quite clear that one is a fiat currency while the other is meant to match the fiat currency while working as a crypto. You basically need to convert your USDT into US dollars or USD before you can actually use them.

Exchanges must need to work on offering USD markets by fulfilling licence requirements in my opinion as they are already offering USDT markets.