Many newcomers are often confused after reading a tutorial on buying cryptocurrency. They wonder: if buying Bitcoin directly with Chinese Yuan (CNY) has zero fees, why do most guides recommend buying USDT first and then using that USDT to purchase Bitcoin? Doesn’t that just add extra transaction costs?
The reason is simple: even with the additional step and fee, using USDT as an intermediate step is still more cost-effective. You end up with more Bitcoin compared to buying it directly with CNY.
To illustrate, let’s look at three screenshots taken within the same minute to minimize the impact of price fluctuations. Each shows what you get for 1000 CNY: one buying USDT directly, one buying Bitcoin directly with CNY, and one buying Bitcoin with USDT. We used the same platform and compared the best available rates to ensure a fair comparison.
The first image shows that for 1000 CNY, you can get 134.77 USDT.
The second shows a direct purchase of Bitcoin yielding 0.001894 BTC.
The third displays the real-time Bitcoin price: 68698.5 USDT. To find out how much Bitcoin you’d get by first converting CNY to USDT and then USDT to BTC, we divide the USDT amount by Bitcoin’s price. Remember, there’s also a small exchange fee to account for.
On OKX, even the basic user tier charges only 0.1% (1/1000) for crypto-to-crypto trades. Using an invite link can further reduce this fee by 20%. Let’s do the math:
134.77 USDT ÷ 68698.5 = 0.001962 BTC (ideal amount before fees)
0.001962 ÷ 1000 = 0.00000194 BTC (transaction fee)
0.001962 - 0.00000194 = 0.001960 BTC (actual amount after fees)
Now, compare this to the direct CNY-to-BTC purchase, which gave only 0.001894 BTC. Clearly, the two-step method yields more Bitcoin.
The difference might seem small, but let’s put it in percentage terms:
0.001960 ÷ 0.001894 ≈ 1.035
That’s a 3.5% difference. For every 1000 CNY you spend, you effectively lose 35 CNY worth of Bitcoin by choosing the direct method. If the market later rises, that loss is magnified.
Thus, despite the extra step, buying USDT first remains significantly more advantageous. Additionally, many altcoins and smaller cryptocurrencies aren’t directly purchasable with CNY. To trade them, you’ll need USDT anyway.
This guide will walk you through the entire process step by step. While current market conditions may not be ideal for buying, familiarizing yourself with the process now will save you time later. Preparing your USDT in advance ensures you’re ready to act when the market is right.
Getting Started with OKX
Account Registration and App Download
If you don’t already have an OKX account, you can create one using the link below. This ensures you get the lowest possible trading fees.
👉 Sign up for a discounted trading fee account here
A quick tip: use your phone’s default browser or Google Chrome for the best experience. The invitation code should auto-fill. If not, enter it manually to ensure you receive the 20% fee discount. After registration, set your country/region to China and create a secure password.
Once registered, download the OKX app from the official website or your app store. The interface might vary slightly due to ongoing updates, but the onboarding process is user-friendly and will guide you through the essentials.
Identity Verification
Before you can start trading, you’ll need to complete identity verification. This is a standard requirement on most compliant platforms.
From the app’s homepage, navigate to your account settings and find the "Identity Verification" section. You’ll need to provide photos of your ID card and complete a facial recognition scan. For higher transaction limits, you may need to complete an additional video verification. Basic verification is sufficient for most beginners.
Buying USDT
Return to the homepage and tap "Buy Crypto." You’ll see two options: "C2C Trading" and "Quick Buy." C2C allows you to choose your merchant and is suitable for larger amounts, while Quick Buy is faster and better for smaller purchases. Both methods allow you to purchase USDT with CNY.
What is USDT? It’s a stablecoin pegged to the US dollar. Initially, each USDT was backed by one USD held in reserve. Though the backing mechanism has evolved, USDT remains the most widely used dollar-backed stablecoin. Think of it as a digital representation of the US dollar—holding USDT is like holding digital dollars.
In the Quick Buy section, select USDT, enter the amount you wish to spend (e.g., 200 CNY), and choose your payment method: Alipay, WeChat Pay, or bank transfer. Alipay often offers the best rates. After confirming, the system will match you with a seller.
These sellers are licensed merchants who facilitate the exchange. Your funds are held in escrow by OKX until the transaction is complete, minimizing risk. Follow the seller’s instructions carefully—they may require additional steps like checking your bank transaction history to prevent fraud.
Once you’ve made the payment, mark it as completed. The seller will release the USDT to your account shortly. If any issues arise, OKX support can mediate based on transaction evidence.
After the transaction, your USDT will appear in your "Funding Account."
Buying BTC
To use your USDT for trading, you’ll need to transfer it to your "Trading Account." This internal transfer is free and instantaneous.
Think of these accounts as separate compartments: Funding for storage, Trading for active deals, and Finance for earnings activities. Go to "Assets," select "Funding Account," choose "Transfer," and move your USDT to the Trading Account.
Now, return to the homepage. You can browse popular cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) under "Mainstream Coins." For beginners, these are safer starting points due to their high liquidity and market stability.
To avoid confusion, use the search bar and look for "BTC." Among the various options, select "Spot Trading" (listed as "BTC/USDT"). This means you’ll use USDT to buy BTC.
In the trading interface, you’ll see two primary order types: limit and market orders. A limit order lets you set a specific price (e.g., buying if BTC drops to 30,000 USDT), while a market order buys immediately at the best available price.
For this example, we’ll use a market order. Enter the amount you wish to spend (e.g., 50% of your USDT), confirm, and the order will execute. Your BTC will then appear in your Trading Account.
Frequently Asked Questions
Why can’t I buy Bitcoin directly with CNY?
While some platforms offer direct CNY-to-BTC pairs, the rates are often less favorable. Using USDT as an intermediary provides better liquidity and lower effective costs, especially for larger or recurring purchases.
Is USDT really safe?
As the largest stablecoin by market cap, USDT is widely trusted and accepted. It’s backed by reserves and maintains a steady 1:1 peg with the USD, making it a reliable medium for trading and value storage.
What if the seller doesn’t release USDT after I pay?
OKX uses an escrow system: the seller’s USDT is locked until you confirm payment. If issues arise, you can raise a dispute with OKX support, who will investigate and ensure you receive your funds.
Are there any hidden fees?
The only fee is the platform’s trading fee, which is as low as 0.1% for basic users. Using an invite link can reduce this further. Internal transfers and unused orders incur no costs.
Can I use other stablecoins instead of USDT?
Yes, but USDT has the highest liquidity and widest acceptance. Other options like USDC or BUSD are valid but may have less favorable pairs or limited availability on some platforms.
What’s the minimum investment amount?
You can start with as little as 200 CNY. However, remember that transaction fees and price spreads might have a larger relative impact on very small amounts.