Who: A stablecoin developed by Tether Limited.
What: A cryptocurrency pegged to the US dollar.
Where: Available on various blockchains such as Ethereum, Tron, Algorand, EOS, Solana and Avalanche.
When: First released in 2014.
Why: Designed to provide a hedge against volatility in cryptocurrency markets.
How: Each 1 USDT is backed by fiat currencies reserved by Tether Limited, equivalent to 1 US dollar.
Usage areas:
As an intermediary currency for cryptocurrency trading
For international money transfers
Mutual funds and other financial products
To get a steady income
Advantages:
It has a relatively stable value because it is pegged to the US dollar
Fast and cheap money transfers
global reach
Easy usability
Disadvantages:
There are concerns about the transparency of Tether Limited's reserves
Having a central structure
Not traded on some cryptocurrency exchanges
Summary:
USDT is a stablecoin widely used in cryptocurrency markets. Because it is pegged to the US dollar, it has a relatively stable value and can be used for fast and cheap money transfers.
Additional Information:
Besides USDT, Tether Limited has also launched other stablecoins such as EURT, GBP₮ and CNHT.
USDT is the largest stablecoin in the cryptocurrency markets.
USDT is supported by many cryptocurrency exchanges and wallets.