Hey, cryptocurrency newcomers! Do you often hear about USDT but can't quite figure out what it is? Don't worry, today Onchain View is here to help you decode it!
USDT, full name Tether, is a stablecoin.
💡 Stablecoin: You can think of it as the 'digital dollar' of the cryptocurrency world! Its value is usually pegged to a stable asset (like the US dollar or gold), so price fluctuations are minimal, making it very suitable for hedging or trading.
USDT is called the 'king of stablecoins' because it is currently the largest and most widely used stablecoin, playing a super important role in cryptocurrency trading!
Main uses of USDT:
Hedging tool: When the cryptocurrency market is highly volatile, you can exchange other cryptocurrencies for USDT to lock in asset value and avoid losses.
Medium of exchange: Many exchanges support using USDT to purchase Bitcoin, Ethereum, and other cryptocurrencies, making transactions more convenient and faster.
Cross-border transfers: USDT enables fast, low-cost cross-border transfers, much more convenient than traditional bank remittances!
Now, do you have a deeper understanding of USDT? It's like a 'universal passport' in the world of cryptocurrency, allowing you to explore the mysteries of blockchain with more confidence!