URL: https://exchangesteps.com/what-is-usdt
Updated: 2026-10-10
Sources: https://tether.to/en/faq , https://tether.to/en/supported-protocols , https://www.okx.com/en-us/help/identify-new-scams-and-securely-use-web3-wallets , https://www.binance.com/en/support/faq/caution-on-the-rising-number-of-crypto-scams-ba0e3b7e0e19495cbe690544ddaa9010

# What Is USDT?

> **Quick answer**
> **USDT** (also known simply as **Tether**) is a **stablecoin** issued by **Tether**. Its value is **pegged 1:1 to the US dollar**, and Tether says it is **100% backed by its reserves**. The same USDT runs on several networks: **TRC20** (Tron), **ERC20** (Ethereum), **BEP20** (BNB Smart Chain) and others. **"USDT Flash"**, on the other hand, is a **scam**: a fake balance that appears and then vanishes.
>
> **[Open Binance and buy real USDT →]**

| | |
|---|---|
| **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](https://exchangesteps.com/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](https://exchangesteps.com/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.

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