What Is USDT?

  • USDT is a cryptocurrency just like BTC, ETH, and XRP
  • USDT is an abbreviation for the term United States Dollar Tether
  • United States Dollar Tether (USDT) is a blockchain-based cryptocurrency
  • USDT is also known as Tether
  • USDT is the symbol under which Tethertokens trade

USDT is a type of cryptocurrency that is pegged to a given fiat currency as well as physical assets such as gold. These cryptocurrencies are known as stablecoins.

Consequently, USDT holds the equivalent amount of to the given cryptocurrencies in reserve. For example, there is currently close to $80 billion in USDT in circulation, which means Tether holds the equivalent amount in its reserves. As a result, each USDT is redeemable for a corresponding U.S. dollar that is held by the company.

Stablecoins, such as USDT, are primarily used for trading purposes on cryptocurrency exchanges. Tether itself is available on almost every well-known exchange including Coinbase, Binance, FTX, Kraken, Kucoin, and dozens more.

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