What is USDT, and why do traders use it?

USDT (Tether) is a stablecoin: a cryptocurrency designed to keep a steady value of about one US dollar. It is one of the most widely used coins in crypto trading.

Why a stable coin matters

Most cryptocurrencies move in price every minute. A stablecoin gives traders a place to hold value without leaving the crypto market. Instead of converting back to a bank currency, many traders move into USDT when they want to pause, and back into other coins when they are ready.

How USDT is used on CryptoEx

• Pricing: most markets on CryptoEx are quoted in USDT, such as ETH/USDT, so prices are easy to compare.
• Trading: you buy other coins with USDT and sell them back for USDT on the spot market.
• Swapping: you can swap USDT for another coin, or the other way around, in one step.

Things to keep in mind

A stablecoin aims to hold its value, but it is still a crypto asset. Its price can move slightly away from one dollar, especially when markets are busy. As with any asset, only hold what you understand.