How to buy and use stablecoin (USDT)?

Time:2022-09-10 Read:120 Discuss:0 Writer:admin


Stablecoins are cryptocurrencies whose value is pegged to an asset (usually a fiat currency) and are designed to provide price stability for the digital currency trading market. Among them, Tether (USDT) is one of the most famous stablecoins, which is pegged to the US dollar at a 1:1 ratio, and the value of each USDT token is equal to $1.

What is Tether (USDT)?

USDT stands for Tether Limited, headquartered in Hong Kong, and is the world's largest stablecoin issuer. Tether Limited was founded by Bitcoin founder Joseph Lubin, and the company claims that every USDT token on its platform is backed by corresponding US dollar reserves. These reserves are kept in a bank's trust account to protect its value from market fluctuations.

Why is USDT so important?

In the digital currency market, price fluctuations are very drastic, which makes it difficult for investors to predict and control risks. To solve this problem, people began to use stablecoins as a medium of exchange for digital currencies. USDT is one of them, and due to its stable exchange rate and wide acceptance, it has become one of the most popular stablecoins in the digital currency market.

In addition, USDT is also used as collateral or means of payment by many cryptocurrency exchanges, which further increases its importance.

How to buy and use USDT?

Currently, the most common way to buy and use USDT is through cryptocurrency exchanges. On these exchanges, you can exchange Bitcoin or other cryptocurrencies for USDT. Once you have USDT, you can trade it on various trading platforms, including spot trading, futures trading, etc. It should be noted that although USDT claims that its value is 1:1 anchored to the US dollar, the market has been controversial about its transparency and audit process. Therefore, before using USDT, investors should fully understand the associated risks.


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