What is the difference between USD and USDT?

raman · Post time 27-8-2023 22:52:50

The value and movement of both USD and USDT seem the same when I see them on a market screener platform like Binance, Bybit, or any other exchange.

chetan · Post time 27-8-2023 23:43:36

Both are the same thing. The USD is a symbol for the fiat currency United States Dollar. The USDT is a cryptocurrency that is backed by the US Dollar and is used to trade cryptocurrencies.

dharmendar · Post time 28-8-2023 00:09:19

USDT is the on-chain version of the United States Dollar. It was issued by Tether, which keeps a reserve of USD. The amount of USDT issued is the same as the net worth of reserves in USDT's treasury. The reason why a separate USDT was used is because the US Dollar cannot be deposited directly to liquidity pools to earn interest.

shubham · Post time 28-8-2023 00:33:13

You are seeing both on the crypto exchanges because some exchanges support direct crypto trading with the US dollar. However, besides trading, there are multiple cases when the dollar is needed. For example, if you want to keep your assets on-chain for any reason, you need a cryptocurrency whose value does not fluctuate like Bitcoin or Ethereum. USDT is used as a store of value for such purposes.