You want to send USDT abroad - to your family or loved ones. Your balance seems sufficient, but instead of a successful transaction, you get an error about insufficient crypto assets. Why does this happen? Let’s break it down.
What Is USDT?
USDT (Tether) is one of the most popular stablecoins in the world, with its value pegged 1:1 to the US dollar. Thanks to its price stability and wide support, USDT has become a reliable tool for storing crypto assets, making payments, and sending fast transfers - over 450 million people use it globally.
Stablecoins are cryptocurrencies whose value is tied to fiat currencies (most commonly the US dollar) and remains stable regardless of market fluctuations.
USDT Across Different Networks
USDT was first launched on the Ethereum network as an ERC20 token. But as other blockchains like Tron, Solana, TON, and others became more popular, it became clear that users needed faster and cheaper transactions. That’s why new USDT versions were created on different networks. Each USDT format runs on its own blockchain and needs that network’s native token to pay transaction fees.
Popular USDT Formats:
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USDT TRC20: The most popular version, operating on the Tron network. Known for near-zero fees and high transaction speed. TRX is required to process transactions.
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USDT ERC20: Runs on the Ethereum network. It’s secure and widely supported in DeFi, but can have high gas fees. Transactions require ETH.
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USDT BEP20: Available on the BNB Smart Chain, offering lower fees compared to Ethereum. BNB is used for gas.
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USDT SPL: The Solana version of USDT. It delivers fast transactions and minimal fees. Requires SOL for transfers.
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USDT Jetton: A version of USDT built on the TON blockchain using the Jetton standard. Requires a small amount of TON for transactions.
USDT Transaction Fees: Exchange vs Self-Custody Wallet
Many users ask: “Why can I pay fees in USDT on an exchange, but not in my personal wallet?” Instead of a successful transaction, they see an error like “Insufficient XXX.” Here’s why. Exchanges like Binance cover network fees themselves using their own reserves of ETH, and other native tokens. Then they deduct the equivalent amount in USDT from your balance.
This is possible because exchanges operate as custodial wallets. Your assets are managed by the platform, and all transactions are performed on your behalf. This is convenient - especially for beginners - but it comes with certain limitations.
Exchange Advantages:
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Transaction fees are deducted directly in USDT - no need to hold additional tokens.
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Fees are converted automatically and often at a fixed rate.
Exchange Disadvantages:
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Your assets are controlled by the platform - you don’t have direct ownership.
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Access to your crypto can be restricted if there are issues with your account.
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Fixed-rate fees aren’t always cost-effective - you might end up paying more than the actual network fee.
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Identity verification is required - it’s not just entering your name. You’ll need to upload document photos, record a video with your face, and have a smartphone camera or webcam. This process can take a lot of time and effort.
Why Do Self-Custody Wallets Require TRX?
In self-custody wallets like Gem Wallet, things work differently. You manage your tokens directly and are fully responsible for covering network fees. To successfully transfer USDT, you need to have a small amount of the network’s native token in your balance - such as TRX, SOL, or TON. Without it, the transaction cannot be processed. Native tokens can be easily purchased with a credit card - just a few clicks right inside the wallet.
Self-Custody Advantages:
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Full control over your assets - only you hold the private keys.
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Flexible fees that depend on real-time network conditions - self-custody follows actual market demand. You pay less when the network is quiet, and more when it’s busy.
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In some networks, fees can be reduced to zero. For example, on Tron you can stake TRX to receive resources like Energy and Bandwidth for free transactions.
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Privacy - no personal information is required during registration.
Self-Custody Disadvantages:
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You need additional cryptocurrencies to pay for transaction fees.
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To use self-custody comfortably, you might need a bit of practice.
Insufficient SOL to send USDT on the Solana network
How To Transfer USDT Between Networks
Imagine you have a subway pass for one city, but then you move to another. The ticket still says “subway pass,” but it doesn’t work in the new system. The same thing happens when you try to transfer USDT from Ethereum to USDT on BNB Chain. Even though the name is the same, these are different versions of the token - and they’re not compatible with each other. If you send USDT to the wrong network address, your crypto could be lost forever - a common mistake for beginners. So, how can you move USDT from one network to another? There are two main options:
Bridges: This method lets you “lock” your token on one network and receive an equivalent on another. But it often involves third-party services, manual inputs, and understanding technical details. For beginners, this can be confusing and risky.
Cross-Chain Swaps: This is the easiest way - just a few clicks inside your wallet. For example, you can swap USDT ERC20 to USDT BEP20 with a small fee for switching networks. Simply choose the “Swap” function, select the networks (from and to), enter the amount - and the wallet handles the rest. It’s a quick and safe way to move your USDT across chains without any hassle.
Swap USDT ERC20 to USDT BEP20
How To Safely Send USDT: Avoiding Common Mistakes and Lost Crypto
To make sure your USDT transfers are fast, smooth, and error-free, follow these simple but important tips:
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Double-Check Wallet Addresses: Before sending or receiving USDT, make sure both you and the other party are using the same blockchain network, and that the wallet address is entered correctly. This helps avoid compatibility issues and reduces the risk of losing your crypto.
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Be Aware of Network Fees: Transaction fees vary depending on the network. TRC-20 is typically cheaper than others, making it a good choice for frequent or small transfers.
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Send a Test Transaction: If you’re sending USDT to a new address or you’re unsure about any detail, start with a small amount. This simple step can confirm everything works as expected before moving a larger amount of crypto.
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Use QR Codes: Scanning a wallet address via QR code helps reduce the risk of mistakes when entering long crypto addresses. A single incorrect character can result in loss - especially when dealing with different blockchains.
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Track Your Transaction: If your transfer is delayed, use a blockchain explorer to check the current status of your transaction and confirm that your crypto is on its way.
