When new users follow cryptocurrency tutorials, one common question arises: Why buy USDT first instead of purchasing Bitcoin (BTC) directly with fiat currency like CNY? After all, many exchanges offer 0% fees for direct CNY-to-BTC trades. Doesn't adding an extra step—buying USDT first—introduce unnecessary transaction costs?
The answer might surprise you: Even with the small trading fee involved, buying BTC via USDT often results in more Bitcoin received than direct fiat purchases. This is due to better exchange rates and deeper liquidity in the USDT markets.
Let’s break this down clearly, using real-world logic and comparative pricing.
👉 Discover how switching to USDT-first strategies can boost your crypto buying power today.
The Hidden Advantage of Using USDT
Imagine you're investing 1,000 CNY. There are two paths:
- Direct Purchase: Buy BTC directly with CNY.
- Indirect Route: Buy USDT with CNY, then use USDT to buy BTC.
At first glance, the direct method seems simpler and cheaper—especially if advertised as "zero fee." But what really matters isn't just fees; it's how much BTC you actually receive.
Here’s a realistic scenario based on near-simultaneous market data (within one minute), minimizing price fluctuation impact:
- With 1,000 CNY, you can buy 134.77 USDT via peer-to-peer (P2P) trading.
- Directly buying BTC with 1,000 CNY gets you approximately 0.001894 BTC.
Now, take that 134.77 USDT and divide it by the current BTC price (~$68,698.50), which gives:
134.77 / 68,698.5 ≈ 0.001962 BTC(ideal amount before fees)
Now subtract the minimal exchange fee (just 0.1% on most platforms like OKX):
- Fee:
0.001962 × 0.001 = 0.000001962 - Final BTC received:
0.001962 - 0.000001962 ≈ 0.001960 BTC
Compare:
- Direct CNY → BTC: 0.001894 BTC
- CNY → USDT → BTC: 0.001960 BTC
That’s a 3.5% difference — meaning you get significantly more Bitcoin using the two-step process.
To put that into perspective:
- On a 1,000 CNY investment, you gain an extra 66 CNY worth of BTC.
- On 10,000 CNY, that’s 350 CNY extra — just from choosing a smarter route.
- And if BTC doubles in value? That “lost” 3.5% becomes double the loss for those who bought directly.
So why does this happen?
Liquidity & Market Depth Matter
Stablecoins like USDT (Tether) dominate crypto trading volume. Most traders use USDT pairs (e.g., BTC/USDT) because they offer tighter spreads and deeper order books compared to fiat pairs (like CNY/BTC). This means better prices and faster execution when buying major cryptocurrencies.
Additionally, many altcoins aren’t available for direct fiat purchase. If you want to trade Ethereum, Solana, or smaller-cap tokens, you’ll almost always need to convert your fiat into USDT first.
👉 Learn how top traders maximize every dollar by leveraging stablecoin advantages.
Step-by-Step Guide: From CNY to BTC via USDT
Step 1: Register and Download the App
Start by creating an account on a trusted global exchange like OKX. Use official channels to ensure security and access fee discounts.
Once registered, download the app through your browser or app store. Navigate the interface easily with guided prompts for buying, selling, and transferring assets.
Step 2: Complete Identity Verification
Before trading, complete KYC (Know Your Customer) verification:
- Upload clear photos of both sides of your ID.
- Perform facial recognition via the app.
Some users may also need C2C Video Verification if higher transaction limits are required. This extra layer ensures safety and compliance but isn't mandatory for small trades.
Step 3: Buy USDT with CNY
Go to the [Buy Crypto] section and choose:
- P2P (Peer-to-Peer): Best for larger amounts; lets you pick trusted sellers.
- Quick Buy: Ideal for beginners; system auto-matches you with sellers.
Select USDT, enter your desired amount (e.g., 200 CNY), and choose a payment method:
- Alipay
- WeChat Pay
- Bank Transfer
You’ll see real-time offers. Usually, Alipay provides the best rate.
Click [Next] → [Buy USDT] to create an order.
How P2P Works
Unlike traditional banking, crypto platforms don’t act as direct counterparties due to regulatory reasons. Instead, they host a marketplace where individuals sell USDT for CNY.
When you place an order:
- The seller’s USDT is locked in escrow by the platform.
- You send CNY to their provided account (e.g., Alipay).
- Once confirmed, the platform releases USDT to your wallet.
If a seller doesn’t deliver, file a dispute with customer support—they’ll review chat logs and payment proof to resolve fairly.
After payment, check your [Assets] tab under [Funding Account]—your USDT should now be visible.
Step 4: Transfer and Trade
Your USDT starts in the Funding Account, which is secure but not usable for trading.
To trade, transfer funds to your Trading Account:
- Go to [Assets] → [Transfer]
- Select: From “Funding” to “Trading”
- Choose USDT and amount → Confirm
No fees apply during transfers.
Now go to [Markets] → Search for “BTC/USDT” → Tap to open the trading pair.
Choose between:
- Limit Order: Set your preferred price (ideal for strategic entries).
- Market Order: Instant buy at current best price.
For quick entry:
- Slide to select percentage (e.g., 50% of balance)
- Click [Buy BTC]
Your order executes instantly. Check your Trading Account—you’ll see partial USDT converted to BTC.
Frequently Asked Questions (FAQ)
Q: Is buying USDT legal?
A: Yes, holding or trading USDT is legal in most jurisdictions as long as you comply with local regulations and tax reporting requirements.
Q: Why can’t I buy all coins directly with CNY?
A: Exchanges limit direct fiat pairs due to regulatory complexity. USDT acts as a universal bridge currency across thousands of crypto assets.
Q: Are there risks in P2P trading?
A: Minimal if you follow platform guidelines—only trade with high-reputation sellers and never release funds until confirmation.
Q: Does converting via USDT always yield more BTC?
A: Not always—but in most cases, yes. Due to superior liquidity in USDT markets, pricing is often more favorable than direct fiat-to-crypto routes.
Q: Can I reverse the process and cash out?
A: Absolutely. Sell BTC for USDT, transfer back to Funding Account, then use P2P to sell USDT for CNY and withdraw to your bank.
Q: What happens if the price changes while I’m transferring?
A: Transfers between accounts are instant and price-independent. Only actual trades are affected by market movement.
👉 Start optimizing your crypto buys with smarter stablecoin strategies now.
Final Thoughts
While it may seem counterintuitive at first, buying USDT before purchasing BTC is a proven strategy used by experienced traders worldwide. It leverages stronger market depth, better pricing, and broader access to digital assets—all while minimizing effective costs.
Even though there's a tiny fee for swapping USDT to BTC, the gains from improved exchange rates far outweigh it. Over time, these micro-efficiencies compound into substantial savings and higher returns.
Whether you're a beginner or scaling up your portfolio, mastering this foundational workflow—CNY → USDT → Crypto—sets the stage for smarter investing in the decentralized economy.
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