I purchased a large amount of BItcoin (peer2peer purchase with cash so no KYC was involved) only to see its value start dropping. i was suggesting to switch it to USDT in order to keep it and convert it back to BTC or any other Crypto when needed. While this idea may be sound financially wise. i wonder how sound it is privacy wise,
is there any good wallet for USDT and a place you can recommend me for in order to make this conversion? i was suggested to go on kucoin becuse you can trade in crypto up to 1 bitcoin without verification process. but i dont know enough to know if this is enough so what do you guys think?
The idea itself is not a problem for your privacy if you do it right.
I would recommend an exchange from BTC to USDT for example on ChangeNow (as far as I know they have a few problems right now, but in itself it’s very trustworthy) or SideShift (has always worked well for me!).
When choosing the USDT wallet make sure to either use a hardware wallet, or if you don’t have one and don’t want to get one then at least not keep it on an exchange (Coinbase, Binance etc.) but use a trustworthy USDT wallet such as MyEtherWallet.
I haven’t tested KuCoin myself, so unfortunately I can’t say anything about it, but I’ve only heard good things about it!
In order to avoid unnecessary losses due to wrong address, keep in mind that there are different chain types (OMNI, ERC20, TRC20 etc.) when making USDT transfers.
If you want to know more about it just reply and I will show you.
Well, you can decide for yourself on the exchange websites what you would like to receive. For example, you can decide that OMNI chain (via the Bitcoin network) or ERC20 (via the Ethereum network) or TRC20 (via the Tron network).
But note that USDT in the three networks is not interoperable.
Each type of chain has its own advantages and disadvantages, you can choose according to your own assets.
Main differences between the three chain types
USDT-OMNI is the USDT issued by Tether based on the BTC network.
The currency deposit address is the BTC address; the deposit and withdrawal will be taking place on the BTC network.
The protocol used by USDT-Omni is the Omni layer protocol built on the BTC blockchain network.
USDT-ERC20 is the USDT issued by Tether based on the ETH network.
Its deposit address is the ETH address and its deposit and withdrawal use the ETH network.
The protocol of USDT-ERC20 is the ERC20 protocol.
USDT-TRC20 is the USDT issued by Tether based on the TRON network.
The currency deposit address is the TRON address, and the deposit and withdrawal will be taking place on the TRON network.
The TRC20-USDT uses the TRC20 protocol.
I always recommend to buy Crypto through AgoraDesk / LocalMonero (They are basically the same with different Domains, so it doesn’t matter which one to use), since you not necessarily need to go through any KYC details.
But if you don’t care about your transaction / wallet being tied to your ID you can of course use any exchange like Binance or so.
1: Withdrawing fees on exchanges very high and they still lock your funds if you try to withdraw it. I wouldn’t take that risk.
2: FTX was the 2nd biggest exchange and a few days ago they collapsed, that why crypto dropped the last few days.