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 trading another cryptocurrency for it, but some markets also allow for direct conversion of USD to USDT. The easiest market for converting USD to USDT for most users is through Kraken. Kraken has a USD/USDT trading pair that allows for direct conversion of fiat to Tether.
Exchanging Coins for 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
What Can You Do With Tether?
Tether can be moved, exchanged, and traded much like any other coin or token. If you have purchased USDT on Binance using Bitcoin and would like to move it to IDAX in order to purchase DROP, you can withdraw your USDT directly to IDAX and complete the purchase using the DROP/USDT pair. Alternatively, you can choose to hold your USDT if you would like to maintain the USD value of your investment.
Depositing USDT to IDAX
If you would like to deposit USDT to IDAX in order to purchase DROP, you can do so from your “Assets” menu by selecting “Deposit” for USDT, and then sending them from Binance or another exchange where you currently own USDT.