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What is USDT (Tether)?

USDT is a stablecoin pegged to the US dollar (1 USDT ≈ 1 USD) issued by Tether. It facilitates payments, trading and transfers between platforms and networks with generally low cost.

Peg
1 USDT ≈ 1 USD
Use
Payments with USDT
Compatibility
Wallets

Definition

USDT is a digital asset called a “stablecoin” because it aims to maintain a stable price similar to the US dollar. It is designed to move between exchanges, wallets and networks with high liquidity and lower volatility than other crypto assets.

Its issuer, Tether Limited, states that tokens are backed by reserves. Users commonly use USDT for remittances, arbitrage between platforms, hedging against volatility and as a bridge currency to enter or exit crypto markets.

At a glance

  • • Target price: 1 USD per USDT.
  • • Guided process: purchase, validations and confirmation.
  • • Funds received in your wallet using a compatible and verified address.
  • • Fast movements and generally low network fees.

How does USDT work?

USD peg

USDT aims to maintain a 1:1 value with the US dollar; the issuer manages reserves and redemptions.

Guided flows

Clear steps to start a purchase, validate details and confirm the operation.

Pre–validation

Key data is checked before confirming payments and destination addresses.

Wallet reception

You provide a compatible address and verify it before sending.

Liquidity

Broad support in wallets, exchanges and related services.

Cost visibility

Check fees and times with your provider before operating with USDT.

Key aspects and risks

Even though USDT seeks stability, it is still a crypto asset with specific operational and regulatory risks. It is important that you understand them before using it.

  • • Volatility risk in the peg under extreme market conditions.
  • • Dependence on the issuer's reserve management and transparency.
  • • Risks associated with the networks used (congestion, fees, technical issues).
  • • Regulatory changes that may affect the use of stablecoins in your country.

A practical view

Many people use USDT to move value between platforms faster than with traditional channels. However, it is not risk–free and should be used with a clear strategy and awareness of the associated implications.

Frequently asked questions

Some quick answers to common questions about USDT and how it is usually used.

Is USDT the same as a bank deposit in USD?+
No. Although USDT seeks to replicate the value of the US dollar, it is a crypto asset issued by a private company and is not equivalent to a bank deposit or government–backed savings.
On which networks can I use USDT?+
USDT exists on multiple networks such as Ethereum, Tron and others. Before sending, you must confirm which network will be used by your wallet or service so that the address is compatible.
What happens if I send USDT to the wrong network?+
Sending USDT to an incompatible network or an incorrect address may lead to irreversible loss of funds. Always verify the network and address before confirming a transfer.