Basic Information
- Full English Name: Tether
- Symbol: USDT
- Market Cap Rank: #3
- Algorithm: SHA256
- Launch Date: November 26, 2014
- Initial Price: $1 USD
- Listed Exchanges: 91 platforms
- Consensus Mechanism: Proof-of-Work (PoW)
- Block Time: 600 seconds/block
- Official Website: Tether.to
👉 Discover how USDT maintains 1:1 dollar parity
What Is Tether (USDT)?
USDT is a stablecoin pegged 1:1 to the US dollar, issued by Tether Limited. Each USDT is backed by $1 held in reserve, ensuring price stability. Users can:
- Convert USD to USDT via SWIFT transfers
- Trade USDT on exchanges
- Redeem USDT for USD at any time
Built on the Bitcoin blockchain using Omni Layer protocol, USDT combines cryptocurrency flexibility with fiat stability—making it ideal for hedging against crypto market volatility.
Key Advantages of USDT
1. Price Stability
Acts as a safe haven during market downturns, unlike volatile crypto-to-crypto trading pairs.
2. Transparent Pricing
1 USDT = 1 USD, providing clear USD-denominated valuations for all cryptocurrencies.
3. Fast Transactions
Settles in minutes via Bitcoin's blockchain vs. traditional banking delays.
4. Zero Transfer Fees
Wallet-to-wallet transfers incur no network fees.
Unique Features
| Feature | Benefit |
|---|---|
| 1:1 USD Peg | Eliminates price fluctuation risk |
| Regular Audits | Publicly verifiable reserves |
| Blockchain Transparency | All transactions publicly recorded |
👉 Compare USDT with other stablecoins
Practical Uses of USDT
Risk Management
Convert crypto holdings to USDT during bear markets to preserve capital.
Easy Fiat Conversion
- Deposit USD → Receive USDT
- Sell USDT → Withdraw USD (5% fee applies)
Exchange Arbitrage
Quickly move value between platforms without traditional banking delays.
FAQs
Q: How is USDT different from Bitcoin?
A: While both use blockchain technology, USDT maintains a stable $1 value whereas Bitcoin's price fluctuates.
Q: Where can I store USDT securely?
A: Use Omni Layer-supported wallets like Tether's official wallet or compatible exchange wallets.
Q: What guarantees USDT's 1:1 dollar backing?
A: Regular third-party audits verify Tether's USD reserves—viewable on their website.
Q: Can USDT lose its peg?
A: Historically maintains parity due to arbitrage opportunities when deviations occur.
Disclaimer: Cryptocurrency investments carry risks. Conduct thorough research before participating in markets.