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All You Need To Know About USDT: Concept, Goals, And Use Cases

Cosmas Mwirigi

Cosmas Mwirigi

Freelance Writer

The cryptocurrency market would be much more challenging to enter if it wasn’t for the advent of stablecoins like USDT. These cryptocurrencies pegged to the US dollar allow traders to be much more flexible when entering or exiting positions.

With fiat money, there’s still some significant friction to enter crypto markets. This is why many investors choose to easily buy ETH to USDT and skip the tedious KYC procedures of crypto exchanges.

This article will provide you with a deep dive into USDT (Tether) fundamentals, advantages, and use cases.

Tether Concept

The concept behind Tether is fairly simple. This cryptocurrency is pegged to the value of the US dollar, with each USDT always being equal to one USD. To achieve this, the Tether company holds fiat assets or equivalent assets in reserve and allows users to redeem USDT for USD.

Consequently, this makes USDT an ideal onramp into the cryptocurrency market, as it allows users to easily purchase other coins on exchanges like godex.io.

Coming into the market in 2014, it’s now the oldest stablecoin in existence. It’s also the most adopted stablecoin, with a market cap of $80 billion. As such, it stands tall at the #3 spot by market cap size.