What is USDT and stablecoins
Updated: 2026-06-09
A stablecoin is a cryptocurrency whose price is pegged to a stable asset, most often the US dollar. The best known are USDT (Tether) and USDC. One such token almost always trades around one dollar, so stablecoins are used for savings, payments and protection from crypto-market volatility.
Why stablecoins matter
Bitcoin and ether swing a lot in price. A stablecoin gives the same speed and reach of a blockchain but without sharp jumps: you hold a digital dollar that can be sent anywhere in the world instantly.
- ✓Savings in dollar terms
- ✓Fast and cheap transfers
- ✓A convenient base to swap into other coins
How USDT differs from USDC
USDT (Tether) is the oldest and most liquid stablecoin and is accepted almost everywhere. USDC is issued by Circle and is considered more transparent about its reserves. In practice both are pegged to the dollar and interchangeable for most purposes.
What are the risks
A stablecoin is only as reliable as its issuer and reserves. In rare cases the price can temporarily drift from the dollar. That's why large amounts are worth spreading out and keeping in your own non-custodial wallet.
Connect your wallet and see your stablecoins across all networks.
Open my accounts →Frequently asked questions
Is USDT always worth exactly one dollar?+
Almost always the price holds around one dollar, but small short-term deviations are possible depending on demand and trust in the issuer.
Which is safer, USDT or USDC?+
Both are widely used. USDC is considered more transparent about reserves, USDT more liquid. For most users the difference is not critical.
Where should I store stablecoins?+
Ideally in a non-custodial wallet where only you hold the keys. That way you don't depend on an exchange or service and fully control your funds.