What is USDT in simple terms.

The world of cryptocurrency is vast and very diverse. It can astonish, confuse, and help earn money. When exploring the world of cryptocurrencies, it is important to understand what USDT (USDT in simple terms) is. After all, this is a stablecoin. 

So, what is USDT: one of the most popular coins that is very important for cryptocurrency. In simple terms, it is a stablecoin that is pegged to traditional money. Overall, USDT has become a convenient tool for both experienced traders and newcomers. 

What is USDT: what is it in understandable terms? 

USDT is a cryptocurrency belonging to the category of stablecoins (from the English "stable coin"). Unlike regular coins in cryptocurrency, stablecoins are pegged to real money. Its main feature is that the value of one USDT always strives to be equal to 1 US dollar. And this is what provides the stability that is often lacking in Bitcoin and Ethereum. 

So, what is known about stablecoins: 

1. This coin is pegged to the dollar. There are minimal deviations, but the proportion is approximately 1 to 1. 

2. This coin takes its link from the blockchain. USDT is issued on several blockchains, including Ethereum, Tron, and Binance Smart Chain.

Thanks to this, stablecoins are widely used for trading, storing, and transferring funds.

The principle of operation of this coin 

So, USDT has a clear working principle. First and foremost, it concerns reserve backing. Every issued USDT is allegedly backed by a real dollar or its equivalent (securities, assets, etc.). This allows for maintaining a stable value.

It is also important to consider the blockchain technology. It is also related to stablecoins. USDT exists in the form of tokens on the blockchain, which makes its use transparent and secure. Moreover, it is worth mentioning which popular networks are being referred to. They are usually Ethereum (ERC-20), which is the most common network and has a high degree of security. Tron (TRC-20) can also be considered. This network offers low transfer fees. Binance Smart Chain can also be considered. 

In Ukraine in 2024, stablecoins also have their advantages. First and foremost, it concerns the convenience of cross-border transfers. What is being referred to: under the conditions of restrictions on bank transfers and the instability of the hryvnia, USDT has become a convenient means for international transactions. 

In terms of saving assets, stablecoins have no equal. For Ukrainians concerned about the devaluation of the national currency, USDT serves as a means of preserving funds. Stablecoins help the cryptocurrency market to develop. In Ukraine, cryptocurrency exchanges and services supporting USDT continue to develop.

There is also such a concept in Ukraine as investment through cryptocurrency. Using USDT, one can participate in cryptocurrency trading, invest in DeFi projects, and earn from staking.

Who needs USDT and why?

So, this currency has its significant advantages. Therefore, USDT is often used. Where does this happen: 

1. On trading exchanges. Such an exchange is convenient for buying and selling other cryptocurrencies. Stablecoins help avoid market volatility.

2. Stablecoins are used for storing funds. What is being referred to: the stable value allows using USDT as a "digital dollar". It is also a great option for storing funds in an inflationary environment.

3. Stablecoins are suitable for various transfers. These are fast and inexpensive transfers both within the country and abroad. Additionally, thanks to stablecoins, there are no intermediaries.

4. Stablecoins are suitable for earning. First and foremost is income from staking and lending.

In other words, stablecoins can be used in various ways. 

Where in Ukraine can you buy USDT?

In 2024, it has become easier to purchase USDT thanks to the numerous available platforms. They are suitable for investors from Ukraine. How can one buy stablecoins: 

1. First of all, one can buy coins through an exchange. Popular platforms include Binance, WhiteBIT, Bybit.

2. Other platforms can also be used. This includes purchasing directly from other users.

3. Exchangers can also be used separately. These are online services like ChangeNOW, BestChange.

Less frequently, but one can also use cryptocurrency ATMs for such purposes. In major cities of Ukraine, cryptocurrency ATMs supporting USDT can be found. However, the war has introduced its own adjustments. Therefore, online options are more available. 

Where and how is it best to store such coins? 

To store USDT, a cryptocurrency wallet is required. After all, this is a convenient and reliable method that is accessible to many. Moreover, one can choose from different types of wallets that are advantageous in terms of fees or ease of use. 

What types of wallets are there and which of them can be used: 

1. The most popular are hot wallets. Among them, mobile applications like Trust Wallet, MetaMask are popular.

2. The second and no less popular option is cold wallets. These are devices that are maximally secure. A good example can be Ledger or Trezor.

When using any wallet, it is important to consider all security protocols. What is being referred to: 

1. The private key from the wallet should not be shared with anyone. 

2. Complex authentication should always be used.

3. To store large amounts, it is better to choose cold wallets.

This will be enough to protect your assets. 

A few words should be said about the advantages of this type of coin. These include stability and minimal volatility. Moreover, stablecoins can be utilized in various ways. Such coins are accepted practically on all exchanges. Also, coins can be quickly transferred, and transactions occur almost instantaneously. One should not forget about the relatively low fees. This is what the Tron network is famous for.

Along with this, such coins have their disadvantages. There have long been doubts about full reserve backing. And these doubts are growing each year. Additionally, in some countries, USDT is under close scrutiny from authorities. Stablecoins also have limited functionality. They are not an asset for growth but merely a tool for stability.