What Are USDT and USDC? A Beginner’s Guide for Traders
You’ve probably seen USDT and USDC mentioned in crypto conversations and wondered what exactly they are — and more importantly, whether you need to understand them to trade on Bayse.
The short answer is yes, and the longer answer is that they’re actually much simpler than they sound. This guide explains both, in plain language, without the jargon.
What Are USDT and USDC?
USDT (Tether) and USDC (USD Coin) are both types of cryptocurrency called stablecoins.
Most cryptocurrencies — Bitcoin, Ethereum, BNB — move up and down in value constantly. One day Bitcoin is worth $60,000, the next it’s worth $45,000. That volatility is what makes crypto exciting for some people and terrifying for others.
Stablecoins work differently. Instead of floating freely in value, they’re tied directly to the US dollar. That means 1 USDT is always worth approximately $1. 1 USDC is always worth approximately $1. The price doesn’t swing wildly because the whole point of a stablecoin is to stay stable.
Think of them as digital dollars, they live on the blockchain and move like cryptocurrency, but their value behaves like cash.
What’s the Difference Between USDT and USDC?
Both serve the same purpose and both are worth $1. The differences are mostly under the hood.
USDT (Tether) is the older and more widely used of the two. It has the highest trading volume of any stablecoin in the world and is accepted on virtually every crypto platform. When people say “send me USDT,” they’re using it the same way someone might say “send me dollars.”
USDC (USD Coin) was created by Circle and Coinbase. It’s considered slightly more transparent in terms of its reserves; the company publishes regular audits showing that every USDC in circulation is backed by actual dollars held in regulated financial institutions. As a result, it’s often preferred by people who want an extra layer of trust.
For practical purposes, trading on Bayse, sending money, buying crypto, both work identically. The choice between them usually comes down to personal preference or which one your exchange has more of.
Why Do People Use Stablecoins?
There are three main reasons Nigerians and traders worldwide use USDT and USDC:
To move money across borders quickly and cheaply. Sending $500 internationally through a traditional bank can take days and cost significant fees. Sending $500 in USDT takes minutes and costs a fraction of the price, regardless of which country you’re in.
To hold value in dollars without a dollar bank account. For many Nigerians, holding money in naira means watching it lose value against the dollar over time. Holding USDT or USDC means your savings stay pegged to the dollar without needing a domiciliary account or going through a bank.
To trade on crypto platforms without exposure to volatility. If you want to buy Bitcoin when the price dips, you can hold USDT in the meantime and convert instantly when you’re ready, without the risk of your holding losing value while you wait.
Where Can You Buy USDT or USDC in Nigeria?
Two of the most popular platforms available in Nigeria are Binance and Bybit. Both are accessible, support naira-to-crypto conversion, and allow you to send USDT or USDC to external wallets like Bayse.
Buying on Binance
Download the Binance app from the App Store or Google Play. Create an account and complete the KYC verification process — this is the identity check that all regulated crypto platforms require. Once verified, tap Deposit Crypto from your dashboard, select USDT or USDC, choose the amount you want to buy in dollars, pick your payment method (Visa or Mastercard), and complete the purchase. Your USDT or USDC will appear in your Binance wallet almost immediately.
Buying on Bybit
Download the Bybit app and register or log in to your existing account. Tap Buy Crypto and select USDT or USDC. Bybit offers three ways to buy:
Debit or Credit Card — the simplest method. Save your card, enter the amount you want to spend, verify the payment, and the transaction completes within minutes.
Crypto Trade — if you already hold another cryptocurrency, you can swap it directly for USDT or USDC at the current market rate.
P2P Exchange — buy directly from another person at an agreed price, paying in naira through bank transfer. This is popular in Nigeria because it avoids card fees and works with any Nigerian bank account.
You can also buy USDT or USDC on other platforms available in Nigeria — Yellowcard, KuCoin, OKX, and others all support it. The process varies slightly by platform, but the outcome is the same: USDT or USDC in your wallet, ready to use.
What Networks Do USDT and USDC Run On?
This is the one technical detail worth understanding, because getting it wrong causes real problems.
USDT and USDC don’t just exist on one blockchain, they run on several different networks simultaneously. The two networks Bayse supports are BEP20 (the Binance Smart Chain network) and Solana.
When you send USDT or USDC to your Bayse wallet, you have to make sure the network you’re sending on matches the network you selected in Bayse. If you choose Solana in Bayse but send via BEP20 from your exchange, the transfer will fail. And because crypto transactions are irreversible, a wrong network selection can’t be undone.
The rule is simple: match the network on both ends before sending anything.
Is It Safe?
Both USDT and USDC have been used to move trillions of dollars in value and are among the most battle-tested financial tools in crypto. That said, a few common-sense rules apply:
Never share your wallet address with people you don’t trust. While receiving funds at your address is safe, sharing it carelessly can expose you to scams.
Always verify the wallet address before sending. Copy-paste errors happen, and some malware is designed to swap wallet addresses in your clipboard. Double-check the first and last few characters of any address before confirming a transfer.
Only use regulated platforms to buy. Binance and Bybit are established, regulated exchanges. Be cautious of informal or peer-to-peer arrangements outside trusted platforms.
How Do USDT and USDC Work on Bayse?
On Bayse, your USDT or USDC sits in your USD Wallet. When you deposit crypto, it converts into your trading balance, which you use to buy YES or NO shares on prediction markets. When you withdraw, the funds go back out as USDT or USDC to the external wallet address of your choice.
The advantage of using crypto to fund your Bayse account is speed and accessibility. Crypto deposits are processed quickly, there are no banking restrictions, and you can fund your account from anywhere in the world as long as crypto trading is available in your country.
Ready to Deposit?
Now that you understand what USDT and USDC are, the next step is getting them into your Bayse wallet.
Read the step-by-step deposit guide →
Or start trading on Bayse now →
