USDT (Tether) is the biggest trading pair against BTC and altcoins for several key reasons:
1️⃣ USDT Acts as a "Crypto Dollar"
USDT is pegged 1:1 to the US dollar, making it a stable value reference in the volatile crypto market.
Traders use it to hedge against price fluctuations without converting to fiat.
2️⃣ High Liquidity & Market Dominance
USDT has massive liquidity across almost all exchanges, making it the preferred trading pair.
Most BTC and altcoin pairs are against USDT because it simplifies price tracking.
3️⃣ Stability in Volatility
Unlike BTC or ETH, which fluctuate heavily, USDT remains stable, making it a safer trading option.
It allows traders to exit positions into a "stable" asset without going back to fiat.
4️⃣ USDT Minting: Why Billions Are Printed?
Tether mints USDT based on demand. Exchanges and institutions request USDT, and Tether issues new tokens.
However, there's controversy over whether Tether has 100% reserves for all USDT in circulation.
5️⃣ Dominance Over Other Stablecoins
Although there are other stablecoins like USDC, BUSD, and DAI, USDT has the highest adoption and trading volume.
Most exchanges list USDT pairs first because it's the most widely used stablecoin.
Final Thought 💡
USDT is the backbone of crypto trading because it provides stability, high liquidity, and a direct USD equivalent. However, its centralized nature and minting practices remain a point of concern for some traders.
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