USDT: What It Is, How It Works, and Why It Matters in Crypto
When you hear USDT, a digital currency pegged to the US dollar and designed to hold steady value. Also known as Tether, it's the most used stablecoin in cryptocurrency markets—traded more than Bitcoin on many exchanges. Unlike Bitcoin or Ethereum, which swing wildly in price, USDT stays close to $1. That’s why traders use it to park money during market crashes, avoid cashing out to bank accounts, or move fast between exchanges without losing value.
USDT is backed by reserves, but here’s the catch: no one can fully verify what’s in those reserves. Tether claims it holds cash, bonds, and other assets to match every USDT in circulation. But audits are limited, and critics have questioned whether it’s truly 100% backed. Still, for millions of users, it works. If you’re trading altcoins, you likely use USDT to buy in or cash out. It’s the bridge between crypto chaos and the familiar dollar.
Related to USDT are other stablecoins like USDC and DAI, but none match its volume. USDC is more transparent, backed by regulated banks, but it’s not as widely accepted on smaller exchanges. DAI is decentralized and crypto-backed, but it’s more complex and can still dip below $1 during market stress. USDT? It’s simple, fast, and everywhere. That’s why even if you don’t trust it, you still use it.
What you’ll find below are real guides on how USDT affects your crypto trades, what happens when it loses its peg, how to avoid scams tied to it, and why some investors treat it like cash—even when the rest of the market is falling apart. These aren’t theory pieces. They’re practical breakdowns from people who’ve been burned, saved, or profited using USDT in real markets.
Stablecoin Pairs in Crypto Trading: How to Reduce Volatility Exposure
Stablecoin pairs like BTC/USDT let crypto traders avoid volatility without leaving the market. Learn how USDC, USDT, and DAI work, which pairs to use, and how to protect your portfolio from crashes.
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