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What Is USDT?

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Issuer Tether
Value Pegged 1:1 to the dollar
Backing Tether's reserves (cash, cash equivalents and other assets), according to Tether
Most common networks TRC20 · ERC20 · BEP20
Uses Holding value in dollars, cross-border transfers, trading

Why do people use USDT?

  • Stable price: unlike Bitcoin, USDT stays close to one dollar.
  • Sending money across borders: you send USDT to your family or to someone in another country, and they sell it for their local currency on P2P.
  • A gateway to trading: most trading pairs on exchanges are quoted against USDT (BTC/USDT, for example).
  • Holding value in dollars in countries where the local currency keeps losing ground.

How does USDT keep its dollar value?

According to Tether, every USDT is pegged 1:1 to the dollar and 100% backed by its reserves. Those reserves include traditional currencies, cash equivalents and other assets, and Tether publishes circulation and reserve figures on its transparency page.

What are USDT TRC20, BEP20 and ERC20?

They aren't different coins. They're the same USDT on different networks:

Name Network Address format
USDT TRC20 Tron Starts with T
USDT ERC20 Ethereum Starts with 0x
USDT BEP20 BNB Smart Chain Starts with 0x (a pegged version; not on Tether's official list)

When you send USDT, you have to pick the same network on both ends, or you could lose your money. The full guide: USDT networks.

What is USDT Flash? (It's a scam)

USDT Flash, or "flash USDT", is an offer that circulates in Telegram and WhatsApp groups: "Buy USDT at half price" or "I'll send you USDT in exchange for this". Here's what actually happens:

  • The scammer makes you believe they've sent you USDT, but the transaction is never actually recorded on the blockchain.
  • A fake balance may show up in your wallet for a short time and then disappear, after you've already paid them real money.
  • The offer always comes from outside the exchanges, at a price "below market".

How to protect yourself

  1. Never buy USDT outside trusted exchanges. Use P2P inside the exchange only.
  2. Check every deposit on a blockchain explorer or in the exchange's own deposit history.
  3. Never pay a "fee to unlock your balance". That's always a scam.
  4. Never grant wallet permissions to a website or contract you don't know.

How do I buy real USDT?

From a trusted exchange: on P2P in your local currency, with a card, or by converting another coin. The full guide: How to buy USDT.

Frequently asked questions

What does USDT mean? It's a stablecoin from Tether whose value is pegged 1:1 to the US dollar.

Is USDT the same as a dollar? Its value is pegged to the dollar, but it's a digital currency issued by Tether and backed by Tether's reserves.

What's the difference between USDT TRC20 and BEP20? It's the same coin on two different networks: TRC20 runs on Tron, and BEP20 runs on BNB Smart Chain. Choose a network that both sides support.

Is USDT Flash real? No. It's a scam that shows a fake balance, which disappears once you've paid.

What is Tether? Tether is the name of the company that issues USDT, and people also use it as a name for the coin itself.

Last updated: 10 October 2026 · Sources: Tether's official pages (FAQ and supported networks), and scam warnings from OKX and Binance.

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