USDT & Crypto Glossary — India Edition

USDT (Tether) is a stablecoin cryptocurrency pegged 1:1 to the US Dollar. It is issued by Tether Limited and is the world's largest stablecoin by market cap and trading volume. 1 USDT always equals approximately $1 USD regardless of market conditions — unlike Bitcoin or Ethereum which fluctuate daily.

A stablecoin is a cryptocurrency whose value is pegged to a stable asset — most commonly the US Dollar. Popular stablecoins include USDT (Tether), USDC (USD Coin), and BUSD (Binance USD). Unlike Bitcoin, stablecoins are not volatile and maintain a constant value, making them ideal for transfers and OTC exchange.

USDC (USD Coin) is a stablecoin issued by Circle, also pegged 1:1 to the US Dollar. It is the second most popular stablecoin after USDT. USDtoCash.live currently only accepts USDT — USDC is not supported.

TRC-20 is the token standard for USDT on the Tron (TRX) blockchain. It has near-zero transaction fees (typically under ₹8), confirms in 1–3 minutes with 19 block confirmations required, and is the most widely used network for USDT transfers globally. Recommended for USDT to INR exchange in India.

ERC-20 is the token standard for USDT on the Ethereum blockchain. It is secure and widely supported, but Ethereum gas fees can be high ($5–$50 per transaction) and confirmations take 5–15 minutes. For USDT exchange in India, ERC-20 is costlier than TRC-20.

BEP-20 is the USDT token standard on BNB Smart Chain (formerly Binance Smart Chain). It has low fees (similar to TRC-20) and fast confirmation times. Supported by USDtoCash.live.

Polygon is an Ethereum Layer-2 scaling network. USDT on Polygon (sometimes called Polygon USDT or USDT-MATIC) has very low fees. USDtoCash.live supports Polygon USDT for exchange.

A blockchain is a distributed, immutable digital ledger that records all cryptocurrency transactions. Each confirmed transaction is added to a "block" in the chain. All USDT transfers happen on blockchains (Tron, Ethereum, BNB Chain, etc.) and can be verified publicly on a block explorer like Tronscan or Etherscan.

A blockchain confirmation is each new block added after the block containing your transaction. More confirmations = higher security. TRC-20 USDT requires 19 confirmations (≈1–3 minutes). ERC-20 requires 12 confirmations (≈5–15 minutes). USDtoCash.live processes your INR payout after the required confirmations are reached.

OTC (Over-The-Counter) exchange means you transact directly with a platform or dealer at a pre-agreed, fixed quoted price — without a public order book. USDtoCash.live is an OTC exchange. Benefits: fixed rate, no slippage, faster settlement, personal support, no counterparty risk.

P2P (Peer-to-Peer) exchange platforms like Binance P2P, LocalBitcoins, or WazirX P2P match individual buyers and sellers directly. Rates vary per seller. You must wait for a seller to accept your order, and if the counterparty doesn't pay or disputes arise, resolution can take days.

A CEX (Centralized Exchange) like WazirX, CoinDCX, or Zebpay is a regulated platform where you can trade crypto through an order book. To withdraw INR, you sell on the exchange and request a bank withdrawal — which takes 30 minutes to 4 hours and involves trading fees + withdrawal fees.

IMPS (Immediate Payment Service) is India's real-time interbank payment system operated by NPCI (National Payments Corporation of India). It is available 24 hours a day, 7 days a week, 365 days a year including public holidays. Transfers are typically completed in seconds. Limit: up to ₹5 lakh per transaction. USDtoCash.live uses IMPS for INR payouts.

UPI (Unified Payments Interface) is India's mobile payment system that allows instant bank-to-bank transfers via UPI ID (e.g., name@upi, phone@paytm). Operated by NPCI, available on apps like GPay, PhonePe, Paytm, and BHIM. USDtoCash.live accepts UPI IDs for INR payouts.

NEFT (National Electronic Funds Transfer) is a batch-based interbank payment system in India. Unlike IMPS, NEFT processes in batches every 30 minutes. It is available 24/7 but settlement may take up to 2 hours. Suitable for larger transfers where speed is less critical.

VDA is the official Indian government term for cryptocurrencies, including USDT. Introduced under Section 2(47A) of the Finance Act 2022. All crypto — whether Bitcoin, Ethereum, or USDT — is classified as a VDA in India. VDA transactions are legal but subject to specific tax treatment.

TDS (Tax Deducted at Source) of 1% applies on VDA transactions above ₹10,000 in a financial year (₹50,000 for specified persons). Introduced under Section 194S of the Income Tax Act from July 2022. The buyer/exchange is responsible for deducting and remitting TDS.

Section 115BBH of the Income Tax Act taxes VDA (crypto) profits at a flat 30% rate (plus 4% health and education cess = 31.2% effective rate). Losses from VDA cannot be set off against any other income or carried forward. This applies to all USDT to INR exchange profits.

KYC is the process of verifying a customer's identity before providing financial services. In India, standard KYC documents include Aadhaar (address proof) and PAN card (tax ID). For crypto exchanges, KYC is required under PMLA (Prevention of Money Laundering Act) guidelines from SEBI/FIU.

The PMLA (2002) governs anti-money laundering compliance in India. In March 2023, crypto exchanges were brought under PMLA, requiring them to register with FIU-IND, maintain records, and report suspicious transactions. USDtoCash.live follows PMLA guidelines in its operations.

AML refers to laws and procedures designed to prevent the proceeds of illegal activities from being disguised as legitimate income. Indian banks and crypto exchanges are required to follow AML policies, including transaction monitoring, suspicious activity reporting, and customer due diligence.

A crypto wallet is a digital tool that stores your private keys and allows you to send/receive cryptocurrency. It does not store coins directly — it stores keys that give access to on-chain funds. Types: hot wallets (software, e.g., Trust Wallet, MetaMask) and cold wallets (hardware, e.g., Ledger). When using USDtoCash.live, you send USDT from your personal wallet to our exchange wallet address.

A transaction hash (or TxID) is a unique identifier for every blockchain transaction — like a digital receipt number. It allows anyone to track and verify a transaction on a block explorer (Tronscan for TRC-20, Etherscan for ERC-20). When you send USDT to USDtoCash.live, share the TxHash with us to speed up verification.

Gas fees are network transaction fees paid to blockchain validators for processing transactions. Ethereum gas fees fluctuate with network demand and can be $5–$100 during busy periods. Tron (TRC-20) and BNB Smart Chain have near-zero gas fees. Gas fees are separate from USDtoCash.live's exchange spread.

The spread is the difference between the market price of USDT and the rate an exchange offers. USDtoCash.live charges a 3% spread: we buy USDT from you at 97% of the market price and sell at 103% of the market price. This is our only fee — there are no additional charges.