USDT
Dollar-pegged stablecoin designed to limit volatility.
Beginner-friendly explanation
USDT is a special type of cryptocurrency called a 'stablecoin'. It always tracks the US dollar: 1 USDT is about 1 USD. This helps traders protect their money from crypto market swings. Example: If you sell Bitcoin for 5,000 USDT, your value stays stable even if Bitcoin keeps dropping.
Intermediate-level insight
USDT is issued by Tether Limited. It is supposed to be backed by dollar reserves or equivalent assets. It enables easy trading on crypto platforms without switching back to fiat currencies. Example: On Binance, you can buy ETH directly with your USDT without converting into euros or dollars.
Advanced perspective
USDT is central to crypto liquidity but faces debates about the transparency of its reserves. It plays a key role in arbitrage, DeFi strategies, and as a temporary safe haven during high volatility. Example: An arbitrage trader uses USDT to quickly move funds between exchanges and exploit price gaps.
Cryptocurrencies & Tokens
stablecoin, dollar, peg, crypto, volatility, liquidity, arbitrage, Tether, reserve