USDT is one of the oldest and most popular stablecoins. It is a household name that has expanded the functionalities of DeFi and other branches of the crypto industry.

Tether Limited created USDT as a fiat-collateralized stablecoin backed primarily by US Dollar reserves, which include cash, short-term US Treasury Bills, commercial paper, and other cash-equivalents.

If you think about it, stablecoins are the main form of real-world assets ever to exist: a tokenized version of a fiat currency, like the US Dollar. But what can you do, exactly, with a stablecoin like USDT?

Here’s a quick breakdown:

  • The primary and most important use of USDT is to hedge against the volatility of other cryptocurrencies or to quickly move in and out of crypto positions without converting back to fiat currency. For example, in times of extreme volatility, crypto investors tend to readjust their portfolios by converting a percentage of their funds into stablecoins, leaving a smaller…

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