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What is USDT and why is it used so much in cryptocurrencies?.
#USDT. If you are starting in the world of cryptocurrencies, it is very likely that you have seen the name USDT almost everywhere. In this article, I explain what it is, what it is used for, and why it is so widely used, in a clear manner without technical jargon.
What is USDT?
USDT (Tether) is a stablecoin, meaning it is a cryptocurrency designed to maintain a stable value.
📌 1 USDT ≈ 1 US dollar (USD)
Unlike Bitcoin or Ethereum, whose prices fluctuate constantly, USDT aims to stay close to 1 dollar at all times.
What is USDT used for?
USDT is mainly used for:
1️⃣ Protecting against volatility
When the market is unstable, many users convert their cryptocurrencies to USDT to avoid temporary losses.
2️⃣ Buying and selling cryptocurrencies
On Binance, most trading pairs use USDT, for example:
BTC/USDT
ETH/USDT
XRP/USDT
This makes it a base currency within the crypto ecosystem.
3️⃣ Sending money quickly
Sending USDT is usually:
Faster than a bank transfer
Cheaper (depending on the network)
Available 24/7
How does it differ from traditional dollars?
Although its value is similar, USDT is not a physical dollar nor is it in a bank.
Traditional dollars depend on banks and hours, while USDT operates on blockchain and can be used at any time.
Is USDT safe?
USDT is one of the most used stablecoins in the world, but like everything in cryptocurrencies, it is not without risks.
Some points to consider:
Depends on the issuing company
Is not bank money
Should be used responsibly
Therefore, many users use it as a temporary tool, not as long-term savings.
Conclusion.
USDT is a key piece within the crypto ecosystem because:
It maintains stability
Facilitates trading
Reduces temporary risks
If you are just starting, understanding USDT is one of the first correct steps.