If you trade on cryptocurrency exchanges like Poloniex or Bittrex, you’ve likely come across a tool called USDT. You may have even used it. However, some of you might not fully understand what USDT is and how to work with it.
USDT is a cryptocurrency asset issued on the Bitcoin blockchain using the Omni Layer protocol. Each unit of USDT is backed by an equivalent amount of US dollars held in reserve by Tether Limited. These can be accessed via the Tether platform. Essentially, it’s a cryptocurrency equivalent of the US dollar, which is why 1 USDT is almost always equal to $1 (price fluctuations are typically very minor).
You can transfer, store, and exchange USDT for goods or services, just like Bitcoin or any other cryptocurrency. Users can send and store Tether (USDT) in any wallet that supports the Omni Layer protocol—examples include Ambisafe, Holy Transaction, or Omni Wallet.
Tether created USDT and other related currencies to reduce barriers to using traditional currencies, offer users a stable alternative to Bitcoin, and provide a method for verifying the legitimacy of exchanges and wallets that might otherwise seem unreliable. USDT offers users a Proof of Reserves Process instead of the traditional Proof of Solvency method.
How To Verify Tether’s Dollar Reserves
Tether’s Proof of Reserves method allows anyone to check the amount of USDT in circulation via the Bitcoin blockchain using tools available on Omnichest.info. The corresponding total amount of USD reserves is reflected in regularly published bank statements and is audited by professional firms.
Anyone can independently check the amount of USDT in circulation. The total circulating supply of USDT is referred to as TUSD. The number of USDT tokens in circulation should always equal the number of US dollars held in the bank account that Tether Limited uses to send and receive fiat currency from users who are buying or selling Tether.
To confirm that the amount of USD in the bank account matches or exceeds the circulating USDT supply, Tether Limited publishes bank statements in a dedicated section of its official website. Professional auditors regularly review, sign, and publish the bank balance and financial reports.
This system is highly reliable and transparent. It’s built on the oldest and most secure blockchain—Bitcoin—and provides users with a stable digital asset tied to national currencies.
How To Use USDT
Using USDT is straightforward. On exchanges like Poloniex or Bittrex (and many others), you can use it to buy Bitcoin and other cryptocurrencies. You can also transfer it from an exchange to any Omni Layer-supported wallet. There are no internal transfer fees for Tether, although some wallets or exchanges may charge their own fees. To convert USDT to dollars (or vice versa) through the Tether platform, users must pay a small fee.
You can buy and sell Tether for Bitcoin on a wide range of exchanges—including those mentioned above—or directly through the Tether.to platform, which allows transfers to and from your bank account (more on this below).
One of the simplest uses of USDT is storing value. Imagine that another Bitcoin fork is coming soon, and you're worried about extreme price volatility. In such a situation, one smart move is to wait out the storm. How can you do that easily? You can sell your Bitcoins for USDT. This effectively locks in your “bankroll”—making it safe from any fork-related turbulence.
Later, when the market calms down and confidence returns, you can buy back Bitcoin or other cryptocurrencies.
Next, we’ll show you how to use the Tether.to platform.
Creating an Account on Tether.to
Step 1: Go to Tether.to.
Step 2: Click “Signup” to create an account.
Step 3: Enter your personal details and click “Create Account”.
Step 4: You’ve created your account. To use it, you must enable two-factor authentication (2FA) for added security. Click “Security Page”.
Step 5: Choose your 2FA method. “Google Authenticator” is highly recommended.
Step 6: Scan the QR code (option 1) or enter it manually (option 2) into the Google Authenticator app.
Step 7: You’ll see a frequently changing code. Enter this code and click “Enable”.
You’ve now enabled 2FA. You’ll need your phone to log in, so make sure you don’t lose it.
Step 8: Check your email and click the activation link sent by Tether.
Your email is now confirmed.
Verifying Your Account
To deposit or withdraw USD, you’ll need to verify your account first.
Step 1: Click on your username in the top right corner.
Step 2: Click “Verification”.
Step 3: Choose “Individual Verification”.
Step 4: Scroll down and read the instructions carefully—this will help you complete the process.
Step 5: Click “Continue to Individual Verification”.
Step 6: Complete all required steps to fully verify your account. Click “Begin” to start.
Sending, Receiving, and Withdrawing USDT
Sending and receiving USDT is simple. You’ll receive a Bitcoin wallet address that you can use to receive USDT. To get started, go to the “Add Funds” page:
You’ll see a wallet address that you can use to receive USDT or Bitcoin.
To fund your account from a bank, click “Fund from Bank” and follow the instructions.
To send USDT or Bitcoin, click “Send Funds”.
Then, enter the recipient’s Bitcoin address and the amount of USDT you want to send.
To convert and withdraw USDT to your bank account, click “Withdraw” and follow the steps.
You can also convert BTC back to USDT. Just click “Convert” and follow the instructions.
That’s all! You’re now ready to use USDT. Remember: to convert USDT to USD (or vice versa), you must first verify your account.
Frequently Asked Questions
What is USDT?
USDT (Tether) is a stablecoin pegged to the US dollar. It’s designed to offer the stability of fiat currency with the flexibility of a cryptocurrency. Each USDT token is backed by one US dollar held in reserve.
How does USDT maintain its value?
Tether Limited claims that every USDT in circulation is backed by an equivalent US dollar in its reserves. Regular audits and public bank statements help ensure transparency and trust in the stablecoin’s value.
Which wallets support USDT?
You can store USDT in any wallet that supports the Omni Layer protocol. Popular options include Omni Wallet, Ambisafe, and Holy Transaction. Many exchanges also offer built-in USDT wallet support.
Can I convert USDT to cash?
Yes. Through the Tether platform or supported exchanges, you can convert USDT back into US dollars. You’ll need a verified account and may need to pay a small conversion fee.
Is USDT safe to use?
While USDT is widely used, it’s important to be aware that its value depends on Tether’s reserves and transparency. Always use secure wallets and enable two-factor authentication for better safety.
Why use USDT instead of USD on exchanges?
USDT allows faster transactions between cryptocurrencies without needing to involve traditional banking systems. It’s especially useful during market volatility or for moving funds between exchanges 👉 Explore more strategies.
This article is based on publicly available information and is intended for educational purposes only. Always do your own research before using digital assets.