What is Tether and why is it worth one dollar?

Tether is a stablecoin meant to track the US dollar. The issuer holds reserves and the market keeps the price near one dollar, but the peg is not guaranteed.

Which network is best for USDT?

It depends on the recipient and the fee, and the key rule is to use the network the recipient asked for. Tron, TON and BNB Smart Chain usually cost less than Ethereum.

Yes, the issuer can freeze tokens at certain addresses. That is one difference between USDT and coins such as Bitcoin.

It carries issuer, freezing, regulatory and wrong-network risks. Holding it in a non-custodial wallet and checking the address and network reduces the risk of human error.

How do I buy USDT in Waletifi?

Use P2P trading, which is protected by an on-chain escrow contract. P2P requires identity verification.

What is Tether (USDT)?

Published: October 26, 2026

Tether (USDT) is a stablecoin, a crypto token designed to stay close to one US dollar. People use it to move money, to hold value in dollar terms and as a base for trading other assets. This guide explains how it works, which networks it runs on and what the risks are.

What is Tether?

Tether (USDT) is a token that aims to be worth one US dollar. The company that issues it, simply called the issuer, holds reserves against the tokens in circulation.

Unlike cash, USDT moves on a blockchain. You can send it to another wallet at any hour without a bank and check the transaction in a block explorer.

How does USDT stay close to one dollar?

The issuer says the tokens are backed by assets such as cash and short-term securities, and it publishes periodic attestation reports. An attestation is not the same as a full audit, so read such reports with a critical eye.

Market trading also pulls the price back toward one dollar: when it dips, buyers step in. Still, the peg is not guaranteed, and stablecoins have at times drifted away from one dollar for a while.

Why do people use USDT?

There are three main uses:

USDT tracks the dollar, not other currencies, so holding it does not earn interest automatically; its value lies only in keeping that peg.

Transfers: sending value across borders, usually faster and cheaper than a bank wire
Dollar-terms savings: staying in a dollar-pegged token to avoid the swings of Bitcoin or Ethereum
Trading base: many crypto markets quote prices in USDT

Which networks does USDT run on?

The same USDT exists on several blockchains, and each version only moves on its own network. The common ones are:

Tron (TRC20): widely used and supported by most exchanges; fees are paid in TRX or Tron energy
BNB Smart Chain (BEP20): fees are usually low and confirmation is quick
TON: fees are usually low and confirmation is quick; fees are paid in TON
Ethereum (ERC20): the broadest support, but fees are usually higher

How to buy, hold and send USDT safely

A non-custodial wallet is the safest everyday place to hold USDT, because only you hold the recovery phrase and keys. Before every transfer, ask which network the recipient uses and compare the full address.

In Waletifi you can hold and send USDT on Tron, TON, BNB Smart Chain and Ethereum, and the network fee is always shown before you confirm. To buy, there is P2P trading with an on-chain escrow contract that holds the seller's USDT until payment is confirmed. P2P trading requires identity verification.

The risks of USDT

USDT is not risk-free. Know these before you use it:

Issuer risk: the value depends on trust in the issuer's reserves and conduct
Freezing: the issuer can freeze the tokens at an address, and a non-custodial wallet cannot prevent that
Regulatory risk: rules in your country can change
Wrong network: USDT sent on the wrong network may be lost
Scams: beware of look-alike addresses and anonymous sellers

Next steps

To choose a network, read the USDT networks comparison, and check the fee in the app before any transfer. This is educational text, not investment advice or a price forecast.