Key Metrics
Tether Price
Change 1w
24h Volume
Market Cap
Circulating Supply

What is USDT?

USDT, a.k.a Tether, is a stablecoin designed to maintain 1:1 peg with the U. S. dollar. This means that every USDT should be supported by USD or a different asset held by Tether Limited. You can think of it as electronic money that is equivalent to the dollar bills in your pockets.

What Problem Does USDT Solve?

USDT provides a solution to the high volatility problem, which is much of a characteristic of cryptocurrencies like Bitcoin and Ethereum. Huge price swings are very risky for traders and investors, and USDT provides a sense of stability that reduces this risk factor, as it has a specific value through which it can be traded, used to make payments or store value.

Why Does the Crypto Market Need USDT?

Crypto market needs USDT for several reasons: Stability: USDT provides a stable asset during periods of high volatility. Liquidity: With USDT comes much liquidity, facilitating efficient trading across various platforms. Fiat Gateway: The use of USDT simplifies the exchange between crypto and fiat currencies, making transactions smoother and faster.

History of USDT

Tether, or, as it was called earlier, Realcoin, was created in 2014. Initially deployed on the Bitcoin blockchain utilizing the Omni Layer solution, the token later spread to almost every existing blockchain, including Ethereum, Tron, and Solana, which contributed to a sharp increase in the popularity and market capitalization of USDT. The idea was apparently to develop an asset by blending the characteristics of blockchain with the stable value of the U.S. Dollar. USDT, as a digital trade currency, has become essential in trading within the crypto market, boosting crypto usage.

Who Created USDT?

Craig Sellars, Reeve Collins, and Brock Pierce founded USDT.  They had an idea for a stable cryptocurrency that would connect the worlds of traditional finance and the emerging cryptocurrency space. Due to their forethought, USDT is now an essential component of the cryptocurrency environment, facilitating more predictable and seamless transactions. USDT was launched by Tether Limited, which is closely associated with the cryptocurrency exchange Bitfinex.

What Technology Does USDT Use and How Does It Work?

USDT operates on multiple blockchain platforms. Originally deployed on the Bitcoin blockchain and since issued on Ethereum (ERC-20), Tron (TRC-20), Solana, and others. This multi-chain approach ensures wider accessibility and integration with various blockchain ecosystems. Each USDT token is backed by reserves held by Tether Limited, which ensures its 1:1 peg with the U.S. dollar. Think of it as a digital representation of the dollar that can travel across different digital highways.

Why and How Does USDT Maintain a 1:1 USD Peg?

USDT uses a reserve scheme to keep its 1:1 peg in place. Tether Limited maintains an equivalent amount of U.S. dollars in reserve for each USDT token that is issued. This peg is kept in place with the aid of public reporting and frequent audits. Tether maintains openness and confidence by disclosing the makeup of its reserves in quarterly attestations.

How Many Tokens of USDT Are There?

As of the most recent reports, approximately 73 billion USDT tokens are in circulation. To meet market demand, Tether issues new tokens or burns old ones, so this figure may change. What is the Maximum Supply of USDT? USDT does not have a fixed maximum supply. Tether's supply is dynamic and can be adjusted based on the USD deposited with Tether Limited. This flexibility allows Tether to meet the changing market demands.

What is USDT Utility?

USDT serves multiple functions in the crypto ecosystem: Trading Pair: It's used as a trading pair on crypto exchanges. Remittances: USDT facilitates quick and low-cost international money transfers. DeFi: It's critical to different decentralized finance (DeFi) applications for lending, borrowing, and providing liquidity.

Tokenomics of USDT

USDT operates on a full-reserve model, meaning fiat reserves fully back each token. This model ensures stability and confidence in USDT's value. Tether Limited manages the issuance and redemption of USDT, maintaining transparency through regular audits. This is crucial for keeping trust in USDT's value and its role as a stablecoin.

What is the All-Time High and All-Time Low for USDT?

The highest price paid for USDT was $1.32, recorded on July 24, 2018, and the lowest was $0.5725 on March 2, 2015. These values highlight rare examples of USDT shifting significantly from its 1:1 USD peg.

Where to Buy USDT?

You can buy USDT on almost all major cryptocurrency exchanges, including Binance, Coinbase, Kraken, and others. It is also available on decentralized exchanges (DEXs) such as Uniswap and Sushiswap.

Who Invested in USDT at an Early Stage?

Early-stage investors in Tether (USDT) are not documented. However, its close association with Bitfinex suggests significant initial backing from entities involved in the exchange's operations. Bitfinex and Tether share the same parent company, iFinex Inc.

What is the Income Source of USDT?

Tether Limited generates income via several channels: Issuance Fees: Fees charged for issuing and redeeming USDT tokens. Investments: Earnings from investing the reserves in instruments like U.S. Treasuries and other financial products. Transaction Fees: Fees from transactions and transfers involving USDT.

More Articles About Tether
Show All Articles
10 Best Wallets to Hold USDT in 2024
Jul 01, 2024
Holding USDT, a popular stablecoin, requires choosing the right wallet. There are myriads of crypto wallets to choose from, and most of them claim to fully support Tether's USDT, the most popular stablecoin in the world. How to choose the wallet that is right for you in 2024? Here we will try to explore the best wallets for holding USDT. We will cover security features, differences between custodial and non-custodial wallets, exchange versus personal wallets, and finally we will come up with the cherry on a top - our own rating of the top wallets available for USDT. What is USDT? USDT, or Tether, is a stablecoin pegged to the US dollar, providing stability in the volatile cryptocurrency market. Selecting the right wallet to hold USDT is crucial for ensuring security, accessibility, and convenience. This essay will guide you through the essential aspects of choosing a USDT wallet and provide a rating of the top wallets in 2024. Security Features Importance of Security Security is paramount when choosing a wallet for USDT. With increasing cyber threats, it’s essential to understand the security measures each wallet offers. You wouldn't want to lose any of your savings, would you? Securing your crypto doesn't require any special hacker-like knowledge. You don't need coding skills or digital security expertise. All you need is paying attention to some ground rules while choosing the crypto wallet. Some of this basic knowledge is basically the same as with many other IT-services. Common Security Features Two-Factor Authentication (2FA): Adds an extra layer of security by requiring a second form of verification. Encryption: Ensures data is protected by converting it into a code that can only be read with a key. Cold Storage: Offline storage that protects funds from online hacks. Multi-Signature (Multi-Sig): Requires multiple keys to authorize a transaction, reducing the risk of unauthorized access. Biometric Authentication: Uses fingerprints or facial recognition for secure access. Custodial vs. Non-Custodial Wallets Here is the moment of truth. Let's try to solve one of the most epical questions since the beginning of crypto. Which wallets are better - custodial or non-custodial. Custodial Wallets Custodial wallets are managed by third-party services. The provider holds the private keys, offering convenience but requiring trust in the service. Advantages: Ease of Use: User-friendly interfaces and features. Customer Support: Assistance available for issues. Backup and Recovery: Simplified processes for recovering lost access. Disadvantages: Control: Users do not have full control over their private keys. Security Risks: Centralized control can be a target for hackers. Non-Custodial Wallets Non-custodial wallets provide users with full control over their private keys, enhancing security and autonomy. Advantages: Full Control: Users manage their private keys, ensuring complete control over their funds. Enhanced Security: Reduced risk of centralized attacks. Privacy: Greater privacy as there is no third-party involvement. Disadvantages: Responsibility: Users are responsible for their own security and backup. Complexity: May require a higher level of technical knowledge. In fact, if you are a novice investor with some relatively small amounts of crypto holdings and USDT savings, it might be a good idea to start with a simple custodial wallet. Just to get familiar with the world of crypto. Yet, as soon as we are talking about some substantial amounts of USDT - think of the sum you wouldn't want to lose at the risk of death - you should better be thinking of a non-custodial wallet. Exchange Wallets vs. Personal Wallets A bit of the same discourse here. Use personal wallet or stick to the wallets provided by crypto exchanges? That question goes back a while. Exchange Wallets Exchange wallets are provided by cryptocurrency exchanges, offering integrated trading and storage solutions. Advantages: Convenience: Easy access to trading and storage in one platform. Liquidity: Quick transfer of funds for trading. Features: Additional features like staking, lending, and borrowing. Disadvantages: Security Risks: Centralized exchanges can be prime targets for hackers. Control: Users do not have full control over their funds. Personal Wallets Personal wallets are standalone applications or hardware devices that provide secure storage for cryptocurrencies. Advantages: Security: Enhanced security features like cold storage and multi-sig. Control: Full control over private keys. Flexibility: Supports a wide range of cryptocurrencies and features. Disadvantages: Complexity: May require more effort to set up and manage. Limited Features: May lack some of the advanced features offered by exchanges. Top Wallets for USDT in 2024 Here comes the essence of this article. We picked the absolutely best wallets of different types for you. No matter what your needs are, you can pick a wallet for yourself from our top list, and be sure it will fit your needs perfectly. Ledger Nano X Ledger Nano X is a leading hardware wallet known for its robust security features. Pros: Cold Storage: Keeps private keys offline. Multi-Currency Support: Supports over 1,500 cryptocurrencies. Bluetooth Connectivity: Allows easy connection to mobile devices. Cons: Price: More expensive than software wallets. Complexity: Requires setup and management. Trezor Model T Trezor Model T is another top-tier hardware wallet offering advanced security. Pros: Cold Storage: Secure offline storage. Touchscreen Interface: User-friendly navigation. Open-Source: Transparent and regularly audited. Cons: Price: High cost. Learning Curve: Requires understanding of hardware wallet operations. Exodus Exodus is a popular software wallet with a user-friendly interface. Pros: Ease of Use: Intuitive design suitable for beginners. Multi-Currency Support: Supports multiple cryptocurrencies. Integrated Exchange: Built-in exchange feature. Cons: Security: Less secure than hardware wallets. Custodial Elements: Some features require trust in Exodus. Trust Wallet Trust Wallet is a mobile wallet known for its versatility and security. Pros: Multi-Currency Support: Supports a wide range of cryptocurrencies. Staking: Allows users to earn rewards by staking their assets. Decentralized: Non-custodial wallet providing full control. Cons: Mobile Only: Limited to mobile devices. Security: Less secure than hardware wallets. MyEtherWallet (MEW) MyEtherWallet is a web-based wallet primarily for Ethereum and ERC-20 tokens, including USDT. Pros: Non-Custodial: Full control over private keys. Compatibility: Integrates with hardware wallets for added security. Open-Source: Transparent and community-driven. Cons: Complexity: May be challenging for beginners. Web-Based Risks: Susceptible to phishing attacks. Coinbase Wallet Coinbase Wallet is a mobile wallet with strong integration with the Coinbase exchange. Pros: User-Friendly: Easy setup and navigation. Multi-Currency Support: Supports a wide range of cryptocurrencies. Integration: Seamless connection with Coinbase exchange. Cons: Custodial Risks: Requires trust in Coinbase for some features. Limited Control: Not fully non-custodial. MetaMask MetaMask is a browser extension and mobile wallet primarily for Ethereum and ERC-20 tokens. Pros: Ease of Use: Simple interface suitable for all users. Integration: Compatible with numerous decentralized applications (dApps). Non-Custodial: Full control over private keys. Cons: Security: Browser-based risks. Limited to Ethereum: Primarily supports Ethereum and ERC-20 tokens. Atomic Wallet Atomic Wallet is a decentralized wallet offering extensive features. Pros: Multi-Currency Support: Supports over 500 cryptocurrencies. Atomic Swaps: Enables peer-to-peer exchanges without intermediaries. Non-Custodial: Full control over private keys. Cons: Security: Software wallet security risks. Complexity: Requires some technical knowledge. Binance Wallet Binance Wallet is the wallet service provided by the Binance exchange. Pros: Integration: Seamless connection with Binance exchange. Multi-Currency Support: Supports a wide range of cryptocurrencies. Features: Advanced trading and staking features. Cons: Custodial Risks: Requires trust in Binance. Control: Limited control over private keys. BitPay Wallet BitPay Wallet is a versatile wallet with strong merchant integration. Pros: Merchant Integration: Supports payments to numerous merchants. Multi-Currency Support: Supports multiple cryptocurrencies. Security: Offers non-custodial security features. Cons: Complexity: May be challenging for beginners. Limited Features: Focused more on payments than advanced features. Conclusion Choosing the best wallet for holding USDT involves balancing security, control, and convenience. Hardware wallets like Ledger Nano X and Trezor Model T offer top-notch security but come at a higher cost and complexity. That is definitely not the best choice for a rookie. But it is probably the best choices for a true crypto whale. Or at least, for a whale-wannabe. Software wallets like Exodus and Trust Wallet provide user-friendly interfaces and multi-currency support but are less secure. They are perfect if you operate small amounts of crypto primarily from your smartphone. Exchange wallets offer convenience and integrated features but require trust in the provider. You can easily swap your USDT for any tokens you like or simply sell them for fiat money. That's convenient, but not for holding large amounts of your savings. Ultimately, the best wallet for you depends on your specific needs and preferences. You and only you can decide what matters the most to you. You might prioritize security over the ease of use, or vice verse.