Understanding USDT in Cryptocurrency

Photo credit: Bitcoinist

USDT stands for Tether, which is a type of cryptocurrency known as a stablecoin. Its value is pegged to the value of a traditional fiat currency, like the US Dollar. In the case of USDT, the value is intended to be equivalent to one US Dollar.

This stability is achieved by backing each token with a reserve of real-world currency held in a bank. Traders often use USDT as a way to move funds in and out of different cryptocurrencies without directly involving traditional banking systems, providing a stable bridge between crypto and fiat currencies.