Different Types of Tether (USDT) and Their Blockchains

If you're interested in investing or trading in the cryptocurrency world, you need to know about stablecoins. One of the most widely used stablecoins is Tether, which maintains its value in line with the US dollar. While the price of USDT and USD might not always match perfectly, the difference is usually minimal.

Understanding Tether can help you protect your investments during market downturns and prevent losses. In this guide, we'll explore what Tether is and break down the different types available across various blockchain networks.

What is Tether?

Tether, or "USDT," is essentially a digital dollar that many people use in the cryptocurrency market. It's a stablecoin whose value rises and falls in line with the US dollar, providing a safe harbor during volatile market conditions.

USDT was first created in 2015 to help cryptocurrency investors manage risk. Before Tether existed, people had to convert their funds to actual dollars when the market declined to avoid losses, which meant leaving the crypto market entirely. After the introduction of digital dollar alternatives like Tether, investors could simply convert their holdings to USDT during market downturns while staying within the crypto ecosystem.

If you're looking to swap between different cryptocurrencies or stablecoins quickly and securely, 👉 you can exchange crypto instantly without registration through platforms like ChangeNOW, which support multiple Tether networks.

Understanding Tether Networks

USDT is offered on various blockchain networks, which can be confusing when you first encounter them. It's important to note that Tether isn't built on its own blockchain—it relies on other established blockchains to function.

Since 2015, Tether has been built on different blockchains, each with its own advantages and limitations. Let's explore the main networks where Tether operates.

Omni Tether (USDT Omni)

The first version of Tether was Omni Tether, which existed on the Bitcoin blockchain. Many investors also know this version as Bitcoin Tether. Being the first implementation, it suffered from several significant problems.

The main issues included slow transaction speeds, network congestion, vulnerability to hacker attacks, and high transaction fees. These problems eventually led investors and exchanges to abandon Omni Tether in favor of better alternatives.

Ethereum Tether (USDT ERC20)

Following the problems investors faced with Omni Tether, a new version called Ethereum Tether was introduced in 2017 on the Ethereum blockchain. If you're familiar with cryptocurrency, you already know how popular Ethereum blockchain is among investors.

Ethereum Tether quickly replaced Omni Tether by offering higher transaction speeds and lower fees. Another name for Ethereum Tether is ERC20 Tether. You might wonder why it has this alternative name—all tokens created on the Ethereum blockchain follow a specific standard called "ERC20," which is where the name comes from.

Tron Tether (USDT TRC20)

Ethereum Tether continued its positive trajectory until 2020. That year, after the launch of DeFi projects, Ethereum blockchain transaction fees increased dramatically, prompting investors to search for better alternatives.

This is when TRC-20 Tether was launched. Tron originally existed as a token on the Ethereum blockchain before launching its own separate blockchain. Tron Tether gained popularity quickly by offering high transaction speeds and lower transfer fees compared to Ethereum Tether.

Beyond these features, the Tron network also offers airdrop possibilities and rewards TRC20 users. Just like Ethereum tokens, Tron network tokens have their own standard called "TRC20"—the standard for tokens built on the Tron blockchain.

When transferring USDT between wallets or exchanges, 👉 choosing the right network can save you money on fees while using services that support all major Tether networks.

EOS Tether

Tether EOS is one of the newest and most complete versions of Tether. This version was first launched in 2019 and claims to eliminate transaction fees for transfers while providing the highest transaction speeds to users.

However, since this version was just recently launched, it's not yet as refined as other Tether types. Currently, Tron blockchain remains the best option for Tether, offering high speed and low transfer fees.

Comparing Tether Types Across Different Networks

As mentioned above, different Tether networks differ from each other in many ways. The biggest differences relate to transaction speed and fees.

Transaction Speed Comparison

When comparing transaction speeds across the three main Tether networks, Omni Tether offers the weakest performance. It takes approximately 10 minutes to 2 hours to create a new block on the Bitcoin blockchain—far too long for active traders.

Ethereum Tether has faster transaction speeds, ranging between 5 to 10 minutes, which is a better option for traders than Omni Tether. But compared to Ethereum Tether, Tron Tether has significantly higher transaction speeds at around 3 minutes. This is definitely a great advantage for traders who need quick transfers.

Network Fee Comparison

Transaction fees vary across blockchain networks, and this is very important when choosing between different Tether networks. Omni Tether charges the highest fees compared to Ethereum Tether and Tron Tether. In some cases, these fees reach $30-35, which is substantial for a transaction fee.

Transaction fees on the Ethereum network were much lower in previous years when the network was quieter. Currently, due to Ethereum network congestion and the higher price of ETH, transaction costs have also increased. Some Ethereum network transaction fees reach $30, though this may improve after Ethereum upgrades are implemented.

Tron Tether transaction fees are currently the lowest. In fact, the cheapest Tether transaction fees belong to the Tron network. Transaction fees on Tron were initially around 10-20 cents, and while they've increased slightly as Tron's price has risen, they remain the most affordable. The highest transaction fee received on the Tron network was $2, which is still much lower than Ethereum and Omni fees. Currently, Tron network transaction fees are around 80 cents.

Transferring Different Types of Tether to Wallets

Since all the Tethers presented differ from each other, you must be careful when transferring them to wallets. You need to enter the exact wallet address for the transfer. For example, you can't use an Omni Tether wallet address to transfer Tron Tether.

To identify these addresses correctly, it's best to familiarize yourself with their appearance and characteristics:

• Omni Tether addresses on the Bitcoin blockchain start with the numbers 1 or 3, or the letters "bc1"

• Ethereum Tether addresses on the Ethereum blockchain start with 0x

• Tron Tether addresses on the Tron blockchain start with TX

Paying attention to these details will help you easily transfer your Tether to the specified wallet address without issues.

Wallets for Different Tether Types

You need a cryptocurrency wallet to keep your Tether in a safe place. These days, many wallets support different types of Tether:

Trust Wallet is a leading wallet service among cryptocurrency investors and traders. This wallet has mobile versions for Android and iOS, with simple installation and usage steps for easy Tether transfers.

Dedicated Tether Wallet is specific to Tether. To install it, visit the official Tether website, register, and purchase the wallet.

Coinomi Wallet is currently one of the most complete cryptocurrency software wallets, offering all its features free to users. It has both mobile and desktop versions and supports all types of Tether.

Tether Free Wallet is designed specifically for Tether types and only works on mobile devices. You can download it from the Tether Free Wallet website.

Atomic Wallet currently supports many coins, with Tether types being just some of the supported currencies. Like other wallets mentioned, Atomic is offered in mobile and desktop versions through the Atomic Wallet website.

Ledger Wallet (Ledger Nano) is a hardware wallet that needs to be connected to a computer system to make cryptocurrency transfers. This hardware wallet is currently one of the most secure wallets for storing digital currencies, supporting Tether and over 100 other cryptocurrencies.

Trezor Wallet is another hardware wallet like Ledger Nano. Since these wallets are not connected to the internet, they cannot be vulnerable to hacker attacks, making them one of the most secure ways to store digital currencies. Trezor wallet supports storing Tether, Dollar, and Euro.

Which Tether is the Best Choice?

Based on the introduction and comparison of Tether types in this article, we can now make a professional choice between them. Among the four networks—Omni, Ethereum, Tron, and EOS—both Tron and EOS offer the best transaction speeds and lowest transaction fees for transfers.

Therefore, Tron Tether and EOS Tether are better options than other types of Tether right now. Of course, Ethereum is working on developing some capabilities in its blockchain network, which may soon reduce transaction fees and increase transaction speeds for this platform.

For now, if you prioritize speed and low costs, Tron Tether remains the most practical choice for everyday cryptocurrency trading and transfers.