What is Tether (USDT)? – The Pioneering Stablecoin in Cryptocurrency Market Explained

What is Tether USDT

What is Tether (USDT)? – The Pioneering Stablecoin in Cryptocurrency Market Explained

In the world of cryptocurrencies, volatility is a given. With swings that can rise or drop by large percentages in mere hours, investors often seek financial instruments that offer stability. This is where Tether USDT enters the picture. But what is Tether (USDT)? This query often arises among those entering the crypto sphere. Simply put, Tether is a type of digital currency known as a stablecoin, designed to maintain a stable value relative to a specific asset or a pool of assets. In this case, Tether is pegged to the US dollar.


The notion of a ‘stable’ cryptocurrency might seem paradoxical to some, given that cryptocurrencies are usually associated with high volatility. This is what sets Tether apart from many other cryptocurrencies. Tether mitigates the price volatility typically associated with cryptocurrencies such as Bitcoin or Ethereum by being pegged to a stable fiat currency like the US dollar.


Tether serves as a bridge between the digital and traditional financial worlds, enabling investors to reap the benefits of blockchain technology without subjecting themselves to extreme market fluctuations. This comprehensive guide delves into Tether’s origin, uses, and significance in the growing digital finance landscape. As we navigate through the world of decentralized finance, blockchain, and cryptocurrencies, understanding Tether becomes increasingly vital.

Understanding Tether (USDT)

Tether (USDT) is a cryptocurrency stablecoin pegged to the US dollar. It is backed “100% by Tether’s reserves,” as declared on their official website. It functions on multiple blockchains, including Bitcoin’s Omni and Liquid protocols, Ethereum, TRON, EOS, Algorand, Solana, and Bitcoin Cash (SLP).


As of January 2023, Tether is the third-largest cryptocurrency after Bitcoin (BTC) and Ethereum (ETH), and the largest stablecoin with a market capitalization of nearly $68 billion. Tether’s popularity isn’t surprising. Stablecoins such as Tether play a pivotal role in the cryptocurrency market as they promise price stability, something rare in the highly volatile world of cryptocurrencies.

Role of Tether in DeFi

One of Tether’s key uses is in the DeFi space. DeFi uses blockchain technology to recreate traditional financial instruments in a decentralized manner. It offers several benefits over the traditional financial system, including higher accessibility, increased transparency, and often better interest rates.


Tether (USDT) is used as a common trading pair on most cryptocurrency exchanges. It’s also a preferred choice as a liquidity provider owing to its stable value. In the DeFi space, Tether is often used as collateral in lending and staking protocols.

Role of Tether in DeFi

Tether as a Tool for Cross-Border Payments

Another key application of Tether lies in facilitating peer-to-peer transactions and cross-border payments. Traditional cross-border payments can often be slow and include high fees. On the other hand, Tether allows for quick, seamless, and cost-effective transactions across geographical boundaries.

The Journey of Tether

Launched as RealCoin in July 2014, the project was rebranded as Tether in November 2014. Over the years, Tether has expanded to various geographic regions, including China, Mexico, and the Eurozone. Tether’s historical journey, however, has yet to be without controversies. In 2021, Tether’s parent company was fined nearly $60 million to settle regulatory probes alleging mishandling and misrepresentation of its reserves.


Despite these challenges, Tether has continued to grow, reaffirming its role as a crucial player in the global crypto ecosystem.

How to Buy Tether (USDT)

Buying Tether (USDT) is relatively straightforward, much like purchasing other cryptocurrencies. Here, we outline the steps you need to follow to add this significant stablecoin to your digital portfolio.


  • Choose a Cryptocurrency Exchange: The first step to purchasing Tether is to select a cryptocurrency exchange that lists USDT. Some popular cryptocurrency exchanges that offer USDT include Binance, CoinSpot, Bitfinex, and Kraken. Each exchange will have its own procedures and policies, so choosing one that aligns with your needs in terms of security, liquidity, and ease of use is important.
  • Create an Account: Once you’ve chosen an exchange, the next step is to sign up for an account. This typically involves providing some personal information as part of the exchange’s Know Your Customer (KYC) process. After providing your details, you should secure your account using a strong, unique password, and consider enabling two-factor authentication for added security.
  • Deposit Funds: After your account is set up, you must deposit funds into it. Depending on the exchange, you might be able to deposit either fiat currency (like USD, EUR, or GBP) or another cryptocurrency (like BTC or ETH). Be aware that some platforms may charge a small fee for deposits or withdrawals.
  • Buy USDT: With funds in your account, navigate to the trading section of the cryptocurrency exchange and select the pair you want to trade. If you’ve deposited fiat, look for a USDT/fiat pair like USDT/USD. If you’ve deposited another cryptocurrency, look for a crypto pair like BTC/USDT or ETH/USDT. After selecting your trading pair, enter the amount of USDT you wish to buy and execute the transaction.
  • Withdraw Your USDT: For security purposes, it’s recommended that you withdraw your USDT from the exchange and store it in a secure digital wallet unless you plan to trade it. This measure is essential to protect your funds from potential security breaches or hacks on the exchange.

Note: This process may vary slightly depending on your specific cryptocurrency exchange. Always stay updated on current market rates and fees associated with your transactions.


Once you have your USDT, you can use this stablecoin in many ways. You can hold it as a stable asset amid market volatility, use it to trade against other cryptocurrencies, carry out peer-to-peer transactions, or even make purchases where USDT is accepted, for example, using a crypto debit card.


In essence, Tether provides a stable and versatile medium of exchange within the cryptocurrency market, offering users the benefits of digital currencies while maintaining a reliable value pegged to the US dollar.


Tether at Disrupttech

One platform that supports Tether (including its USDT trc20, bep20, and erc20 chains) is Disrupttech, a White Label Crypto Loading Platform & Debit Cards. By offering crypto debit card services, Disrupttech facilitates seamless transactions in Tether and other cryptocurrencies, making it an essential asset for traders, investors, and businesses.


Tether has proven to be an invaluable asset in the cryptocurrency market. Providing a stable value amidst market volatility enables users to hold and trade cryptocurrencies without the usual risks. With the use of a crypto debit card, interacting with Tether and other cryptocurrencies has always been challenging.


While Tether has had its share of controversies, it remains a popular choice for those seeking stability in the otherwise volatile cryptocurrency market. As blockchain technology and decentralized finance continue to evolve, Tether’s role in this ecosystem will undoubtedly be one to watch.


In a world that is rapidly embracing digital assets, understanding what is Tether (USDT) and its functionalities is more than just beneficial—it’s essential for those interested in participating in the dynamic world of cryptocurrencies.

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