In this article:
Learn about Tether (USDT), also commonly known as USDT, a cryptocurrency launched in 2014, known as a stablecoin.
USDT explained
USDT is one of the largest and most popular stablecoins on the crypto market.
Unlike traditional cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), which can experience significant price fluctuations, stablecoins like USDT are designed to maintain a stable value over time.
In essence, USDT is pegged to the US Dollar, meaning that 1 USDT is always intended to equal 1 US Dollar. It can also be represented as being pegged 1:1.
Tether also offers tokens pegged to a range of fiat currencies, including the Euro, offshore Chinese Yuan, Mexican Peso, and even gold. However, these have yet to generate as much market capitalization as the US Dollar-pegged USDT tokens.
What is a stablecoin?
Stablecoins are a special type of cryptocurrency engineered to maintain a steady value, typically pegged to a fiat currency like the US Dollar.
They offer stability and security in a realm often characterized by volatility. There are several types of stablecoins:
Fiat-backed stablecoins: Tied to traditional currencies like the US Dollar, ensuring stability through tangible asset backing.
Crypto-backed stablecoins: Supported by other cryptocurrencies, ensuring value through collateralisation.
Algorithmic stablecoins: Utilise algorithms to regulate token supply dynamically, aiming for price stability.
Read our detailed guide on stablecoins and what they are.
Tether’s transparency and reserves
Tether maintains transparency by regularly updating a breakdown of its reserve holdings on its website. As of Dec. 31, 2024, Tether reported more assets than liabilities, with $157.6 billion in backing and $137.6 billion in circulating tokens.
The company disclosed that roughly 85% of its reserves consisted of cash, cash equivalents, short-term deposits, and commercial paper, with 75% of this portion invested in US Treasury bills.
Additionally, Tether allocated 0.05% of its reserves to corporate bonds, 3.62% to precious metals, 2.91% to Bitcoin, 4.95% to secured loans to unaffiliated entities, and 3.89% to other investments. These numbers often change, and as always, DYOR (Do Your Own Research) on any cryptocurrency you want to hold.
Why hold USDT?
Whilst it's very important to do your own research, owning USDT, or any stablecoin, can offer several advantages:
Stability: They can act as a shield from the unpredictable swings of traditional cryptocurrencies, ensuring a secure store of value.
Funds for Swaps: You can swap stablecoins for other cryptocurrencies in Best Wallet, facilitating quick reactions to market movements.
Fast and Borderless Transactions: They also enable swift and cost-effective transactions globally, ideal for cross-border payments.
Transparency: Many stablecoins undergo regular audits, ensuring complete backing and transparency, and fostering trust among users.
Can I buy USDT in Best Wallet?
Yes, you can buy USDT directly within Best Wallet on several chains, including Ethereum, Solana, and BNB Smart Chain.
You can also buy other major stablecoins like USD Coin (USDC) and Dai (DAI) in-app.
Swapping your USDT tokens
Swapping your USDT for another crypto token is simple and quick in Best Wallet, both on the same chain or cross-chain, opening up new assets in-app.
Read our guides on how to swap crypto on the same chain or cross-chain.
Why hold USDT?
USDT can be an excellent option for holding a stable reserve directly within your Best Wallet, providing you with the flexibility to quickly swap into other cryptocurrencies when opportunities arise. Its stability makes it a valuable tool for navigating volatile market conditions.
You can own USDT on Ethereum, Solana, BNB Smart Chain, and Polygon.
As always, please do your own research before buying or holding a cryptocurrency.
Need further support?
USDT is a widely used stablecoin that can offer stability, flexibility, and reliability in an often volatile crypto market.
You can buy, deposit, and swap USDT all in Best Wallet. If you need assistance, please contact the Best Wallet support team in-app by going to Settings → Get Help, or open a ticket on our Support site.
Important Reminder:
No one from Best Wallet will ever request your private key. Keep this information strictly private and never share it with anyone.