Must-Read for Safe Remittance! 3 Steps and 1 Pitfall in Stablecoin USDT Operations

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Are you looking to remit money to family or friends overseas, yet troubled by the high fees and long waiting times of traditional banks? The cost and efficiency of traditional remittance methods are indeed unsatisfactory.

At this point, you may have heard of USDT. As a stablecoin, it has a massive market capitalization and aims to provide a more efficient option.

• Market Capitalization: $183.42B
• 24-Hour Trading Volume: $119.99B

This article will guide you on how to safely use stablecoins, giving you more confidence in operations and avoiding common pitfalls of fund loss.

Key Takeaways

• Choose a reliable platform, enable two-factor authentication, and back up your personal wallet to ensure USDT account security.
• Before transferring, confirm the recipient’s network type (such as TRC-20 or ERC-20), and carefully verify the receiving address and amount to avoid fund loss.
• Beware of fake “mining” and impersonated customer service scams; do not pay extra fees to “unfreeze” funds or “verify” assets.
• Understand the legal risks of USDT remittance, avoid illegal currency exchange, and comply with local laws and regulations.

Step 1: Exchanging for USDT and Account Security

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To safely use stablecoins, your journey starts with building a solid security foundation. This step includes three key aspects: choosing a reliable platform, strengthening your account, and mastering your digital assets.

Choose a Reliable Platform to Exchange for USDT

Your first step is to acquire USDT on a trustworthy platform. Apps like Biyapay that support multiple fiat deposit channels provide convenient exchange options. No matter which platform you choose, the process is generally similar:

1. Register an Account: Complete registration using your email or mobile number.
2. Complete Identity Verification (KYC): This is a key step to ensure fund security and regulatory compliance. You need to prepare and submit basic information.

• Personal Information: Provide your name, address, etc.
• Identity Verification: Upload clear photos of government-issued ID documents (such as passport or ID card) and complete a facial recognition selfie.

3. Purchase USDT: After verification is approved, you can purchase USDT through platform-supported methods (such as bank transfer).

Enable 2FA Two-Factor Authentication

Your account password is the first door, while two-factor authentication (2FA) is the second lock, greatly enhancing account security. When logging in from a new device or performing sensitive operations like withdrawals, in addition to the password, you need to enter a dynamic verification code.

Security Tip: It is strongly recommended to use a time-based one-time password (TOTP) app to set up 2FA instead of SMS verification, as SMS may be intercepted.

Common 2FA setup methods include:

• Authenticator App: Use apps like Google Authenticator or Microsoft Authenticator to scan the QR code provided by the platform.
• Hardware Security Key: This is a physical device offering the highest level of security protection.

Create and Back Up Your Personal Wallet

Exchange accounts are suitable for trading, but for long-term storage of large assets, a personal wallet (non-custodial wallet) that you fully control is a safer choice. You can consider using popular wallets like MetaMask or Trust Wallet.

After creating the wallet, you will receive a set of “seed phrase” consisting of 12 or 24 words.

Warning: The seed phrase is your assets!

• Offline Backup: Write the seed phrase on paper and store it in a fireproof and waterproof safe.
• Never Screenshot or Cloud Store: Absolutely do not store the seed phrase digitally on connected devices; hackers specifically scan these files.
• Verify Backup: You can first deposit a small amount of funds (such as $10) into the new wallet, then try restoring the wallet with the seed phrase to ensure the backup is accurate.

Remember, in the crypto world, you are the bank manager of your own assets.

Step 2: Safely Using Stablecoins to Complete Transfers

You now have a secure account and wallet, entering the most critical practical operation phase. Safely using stablecoins for remittance requires you to act like a meticulous pilot, carefully checking every instrument before takeoff. Every confirmation in this step is crucial.

Confirm the Recipient’s Network Type

This is the step in USDT transfers most prone to errors and with the most severe consequences. Before initiating a transfer, the first thing you must do is confirm with the recipient: On which network do they need to receive USDT?

You can think of different blockchain networks as mutually isolated banking systems. For example, the TRC-20 network is Bank A system, and the ERC-20 network is Bank B system. If you try to transfer from Bank B to a non-existent account in Bank A, the money will be lost.

Sending USDT to the wrong network will make your funds inaccessible on the target network. For example, you send Ethereum-based ERC-20 USDT to a TRC-20 address. The transaction may technically show as successful, but the recipient’s wallet will not recognize or use these tokens. Because blockchains are independent systems, they do not communicate automatically. Recovering these funds is very complex and may even be permanently lost.

Operation Core: Before transferring, be sure to obtain a clear receiving address from the recipient and have them explicitly tell you which network the address belongs to (e.g., TRC-20 or ERC-20).

Detailed Explanation of TRC-20 vs. ERC-20 Differences

Understanding the two most common USDT networks—TRC-20 (TRON chain) and ERC-20 (Ethereum chain)—can help you make wiser choices. They differ significantly in address format, transfer speed, and fees.

Why such big differences in fees and speed?

• ERC-20 USDT: It runs on the Ethereum network. As the most mainstream smart contract platform, Ethereum has very busy network transactions, leading to high processing costs (Gas fees) and relatively slow speeds.
• TRC-20 USDT: It runs on the TRON network. TRON’s design goal is high throughput and low cost; it can process thousands of transactions per second. Therefore, TRC-20 transfers are almost instant with extremely low fees.

For daily small remittances, the TRC-20 network is undoubtedly more economical and efficient. This is why it is so popular among individual users.

Verify Receiving Address and Amount

Blockchain transactions are irreversible. Once a transaction is confirmed, no one can cancel or modify it. Therefore, repeatedly verifying before clicking “Send” is the last barrier to protecting your funds.

Security Checklist:

1. Copy and Paste Address: Manually entering the address is highly error-prone. Be sure to use the copy-paste function.
2. Check First and Last Characters: After pasting the address, carefully verify the beginning (such as T... or 0x...) and the last 4-6 characters to ensure they match what the recipient provided.
3. Confirm Network Match: Confirm again that the transfer network you selected (TRC-20/ERC-20) fully matches the type of the receiving address.
4. Send Test Amount: If it’s the first time transferring to a certain address or the amount is large, it is strongly recommended to send a small test amount (e.g., $1 USDT) first. After the recipient confirms receipt, send the remaining large amount.
5. Check Memo/Tag: Some centralized platforms (like exchanges) require filling in a specific “memo” (Memo or Tag) to identify users. If the recipient provides a memo, be sure to fill it accurately, otherwise the funds may not arrive.

Following this checklist can maximize avoidance of fund loss due to operational errors. This is one of the core habits of safely using stablecoins.

Confirm Transaction and Query Records

After you confirm all information is correct and submit the transfer, the platform will generate a unique transaction ID, usually called Transaction Hash (Transaction Hash or TxID). This is a long string of letters and numbers, serving as your transaction proof on the blockchain.

You can use this TxID to query the transaction status on the corresponding blockchain explorer:

• TRC-20 Transaction: Use Tronscan (tronscan.org) to query.
• ERC-20 Transaction: Use Etherscan (etherscan.io) to query.

How to Query?

1. Visit the corresponding blockchain explorer website.
2. Copy and paste your transaction hash (TxID) into the search box.
3. Press Enter, and you can see all details of this transaction, including sender address, receiver address, amount, and most importantly—transaction status.

When the transaction status shows “Confirmed” or “Success”, it means the transaction has been written to the blockchain and the funds have been successfully transferred. At this point, the recipient should see the funds in their wallet.

Must Beware: 2 Major Pitfalls and 1 Risk in USDT Remittance

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You have mastered the basics of USDT operations, but this is just the beginning. In the crypto world, technically correct operations do not fully guarantee your fund security. You also need sharp risk identification skills to see through carefully designed traps. Next, we will deeply analyze two most fatal pitfalls and one legal risk you must not ignore.

Technical Pitfall: Selecting the Wrong Transfer Network

We have explained the importance of network selection in detail in Step 2, but it must be emphasized again here as the number one pitfall. Because this is the purest, most common, and most regrettable technical mistake.

Pitfall Recreation: You send a sum of ERC-20 USDT (address starting with 0x) to a TRC-20 address (starting with T) provided by a friend. The transaction shows “success” in your wallet, but your friend will never receive the money.

These funds are not “disappeared” but sent to an uncontrollable address on the TRON network. Due to the one-way nature of blockchain, this money is almost impossible to recover. The only antidote to this pitfall is: Perform repeated confirmations before clicking “Send”.

Scam Pitfall: Beware of Fake Transaction Scams

Once you are proficient in USDT operations, scammers will use more advanced social engineering tactics to attack you. They no longer rely on your technical mistakes but directly induce you to “voluntarily” send funds into their pockets.

Common Scam Tactics Include:

• Fake “Mining” or “Airdrop” Baits: You may encounter projects claiming you can “mine” USDT by staking or participating in activities. Especially on the TRON network, such scams are common. In fact, USDT itself cannot be mined. Scammers may also deliberately send an erroneous “airdrop” to your address; when you check the block explorer, you will see an error message and be guided to a website to “solve the problem”. This website is a phishing trap.
• Impersonating Customer Service or Official Personnel: Scammers impersonate exchange customer service, project parties, or so-called “blockchain official personnel” and contact you via social media.

Scam Alert: Stop operations immediately if the following occurs!

1. Requires paying extra fees to “unfreeze” funds: The other party claims your funds are frozen and requires paying a “deposit” or “fee” to unlock. Legitimate services never do this.
2. Guides you to a third-party website to verify fund sources: The other party sends a link requiring you to “verify if your funds are clean” or “check asset contamination” through some service. Legitimate platforms always complete these checks internally.
3. Claims you need to pay “tax” to receive funds: Scammers say you must pay a tax to receive the transfer, even forging official documents. If this “tax” requires payment in cryptocurrency, it is almost certainly a scam.
4. Receives so-called “official documents”: You receive notifications from “blockchain regulatory agencies” or “government departments” requiring you to transfer or unlock your wallet. Remember, blockchain is a technology, not an organization that sends you notifications.

How Do Scammers “Launder” Your Money?

Once you fall for it and transfer USDT to scammers, they immediately start a complex money laundering process, making fund tracking extremely difficult.

This process is very rapid; once your USDT leaves your wallet, it may be transferred to the ends of the earth in minutes. Therefore, prevention is key.

Legal Risk: Avoid Crossing the Illegal Currency Exchange Red Line

The convenience of USDT makes it a popular choice for cross-border remittance, but it hides huge legal risks, especially in countries and regions with strict foreign exchange controls. You must understand that operational convenience does not equal legal behavior.

In mainland China, any act of bypassing official channels for RMB to foreign currency exchange may violate the law. The Supreme People’s Procuratorate has repeatedly clarified that using virtual currency for offshore exchange is a prohibited illegal financial activity.

The following behaviors have been clearly identified as illegal:

• Disguised Forex Trading: You buy USDT with RMB on an OTC platform, then transfer USDT to an overseas platform to exchange for foreign currency. This process is legally considered “disguised forex trading”, violating China’s Foreign Exchange Management Regulations.
• Becoming a Link in Money Laundering Chain: Even if you just want normal exchange, if your counterparty’s funds are from illegal sources or the platform itself is engaged in money laundering, you may unknowingly become part of the crime chain.

Legal Cost China’s Supreme Court and Supreme People’s Procuratorate have explicitly included “virtual asset” transactions in the scope of money laundering crimes.

• Criminal Penalties: According to public legal cases, individuals have been sentenced to imprisonment for participating in illegal USDT transactions. For severe money laundering, such as amounts over about $700,000, may face 5 to 10 years imprisonment and high fines.
• Asset Confiscation: Any proceeds from illegal activities will be confiscated.

Therefore, before any USDT-related transaction, ensure its compliance. Safely using stablecoins means not only protecting your assets from scammers but also keeping yourself away from legal red lines.

Now, you have mastered the core three steps of safe remittance: secure exchange, cautious transfer, and risk identification. Always stay vigilant about the three major points of “wrong network selection”, “scam traps”, and “legal risks”, and develop the habit of “confirm and confirm again”.

In the crypto world, personal responsibility is the first line of defense for asset protection. Because private keys control asset access, you are the bank manager of your own assets.

Internalize safe operations as a habit, and wish every USDT remittance of yours to be safe and smooth.

FAQ

What if I accidentally send USDT to the wrong network?

Blockchain transactions cannot be reversed. Once funds are sent to the wrong network, they are almost impossible to recover. Therefore, repeated verification before transfer is crucial.

Key Tip: Always prioritize prevention. Before sending large funds, test with a small amount (such as $1).

Why do I need a personal wallet? Isn’t an exchange account enough?

Exchange accounts are controlled by the platform and suitable for trading. Personal wallets have private keys controlled by you, with assets fully belonging to you, making long-term storage safer. Think of it as your personal digital safe.

Is USDT’s price really always stable?

USDT aims to peg 1:1 with the USD, but market supply and demand can still cause slight price fluctuations, usually between $0.99 and $1.01. In extreme market conditions, fluctuations may be larger.

How can I quickly identify a USDT scam?

Remember one core principle: Any behavior proactively requiring you to pay “fees”, “deposits”, or “taxes” to unlock or receive funds is almost always a scam. Legitimate transactions do not set such preconditions.