What is USDT and How To Purchase It

  1. Home
  2. Knowledge Base
  3. Dropil (DROP) Tokens
  4. What is USDT and How To Purchase It

What is USDT?

USDT is the ticker/symbol for the Tether coin/token. It is the largest stable currency used in cryptocurrency at this time. This means that the value of 1 Tether is approximately 1 USD at all times. The company behind Tether maintains USD funds equivalent to all Tether in circulation, so that 1 USDT is always redeemable for 1 USD. Exchanging coins or tokens for USDT means you are exchanging them for a USD value equal to how much your coins or tokens are worth, and you receive the equivalent USDT. There are some price fluctuations on USDT, where they may be worth $.99 or $1.01, but in general, these are relatively minor fluctuations.

Why is a USDT Market Useful?

Most cryptocurrency markets are extremely volatile. Exchanging your assets with BTC or ETH trading pairs means you are exchanging one volatile asset for another. With USDT pegged to approximately $1, users can trade into a currency that will maintain its value. For a market like DROP, users can hold USDT and wait to purchase until the market stabilizes or sell their DROP tokens in order to seek refuge from market volatility.

How to Acquire USDT

The easiest way to acquire USDT is by trading another cryptocurrency for it, but some markets also allow for direct conversion of USD to USDT.

Other exchanges such as Binance, OKEx, HitBTC, and many other exchanges offer larger coin pairs with USDT. This is the easiest way to acquire USDT if you already have Bitcoin or Ethereum or a number of other coins. Simply find an exchange that supports USDT and has a USDT pair with the coin that you own (such as Bitcoin) and exchange your coins for their USDT value.

*Example from the BTC/USDT pair on Binance

Was this article helpful?

Related Articles