Tether (USDT) is a well-known stablecoin in the cryptocurrency market. Each USDT coin is pegged to 1 USD, ensuring its value remains stable—always approximately equal to $1. Issued by Tether Limited, a company owned by Bitfinex, over two-thirds of USDT’s token supply is backed by cash or liquid trade assets.
As a stablecoin, USDT is resistant to sudden price volatility. When transferring USDT, you can trust that its value won’t fluctuate. However, USDT is not equivalent to USD and is neither legal tender nor government-issued currency.
Tether primarily operates on the Ethereum blockchain as an ERC20 token, meaning it can be sent to any Ethereum-compatible wallet address.
Is USDT Safe?
Tether leverages cryptographically secured open-source blockchain technology, making transactions immutable and highly resistant to hacking. According to Tether Limited’s terms, USDT is redeemable for USD, provided it is stored, sent, or received securely via the blockchain.
Critics, however, question its centralization—unlike decentralized cryptocurrencies, USDT’s supply and minting are controlled by a single entity.
Important Note:
Cryptopay supports USDT transfers exclusively via the following networks:
- BNB
- TON
- ERC20
- TRC20
Funds sent through unsupported networks (e.g., BEP20) will be permanently lost.
Compliance Update
Under the Financial Promotion Act (effective October 8, 2023), certain account features are temporarily restricted for UK-based Cryptopay users with verified residency.
FAQ
1. How Does USDT Maintain Its 1:1 Peg to USD?
Tether Limited claims to hold equivalent USD reserves for each USDT in circulation, audited periodically to ensure transparency.
2. Can USDT Be Used Like Cash?
No. While stable, USDT lacks legal tender status and functions solely as a digital asset for trading or transfers.
3. Why Choose USDT Over Other Stablecoins?
USDT’s widespread adoption and liquidity make it a preferred choice for traders seeking stability in volatile markets.
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