It is important to note that there are two types of USDT (Tether), the original Bitcoin-based USDT (issued via the Omni Layer Protocol) and Ethereum-based USDT, compatible with the ERC20 standard.
Covesting only supports the Ethereum-based version of the USDT token and as such deposits and withdrawals can only be accepted to/from ERC20 compatible wallets. Attempting to deposit Bitcoin-based USDT to Covesting will cause a failed deposit and you may incur a potential loss of funds, likewise, withdrawing USDT from Covesting to a Bitcoin-based address is not possible and may also incur a loss of funds. To prevent withdrawals to non-ERC20 compatible addresses it is not possible to whitelist Bitcoin-based USDT addresses on the Covesting platform.
Bitcoin-based USDT and Ethereum-based USDT are considered two separate cryptocurrencies which run on different blockchains - therefore they cannot be used interchangeably.
If you are unsure which version of USDT your wallet supports please contact your wallet provider and double check before making any transactions to your Covesting account, as it may not be possible to retrieve funds if an error occurs.
Why does Covesting use Ethereum-based USDT?
At Covesting we decided to utilise Ethererum-based USDT as the token incurs much lower blockchain transaction fees and has considerably faster confirmation times compared to it's Omni layer counterpart.
These benefits help to facilitate a much smoother and faster deposit/withdrawal process on the platform whilst also giving the same advantages of the Bitcoin-based version of the stable coin.