Guide · 4 min read
What is USDT? The stablecoin explained simply
USDT is one of the most used cryptocurrencies in the world. Unlike Bitcoin, its price is designed to stay close to the dollar. Here is what to understand.
A cryptocurrency that aims for stability
USDT, issued by the company Tether, is a “stablecoin”: a cryptocurrency that seeks to keep a value close to 1 US dollar. So 1 USDT is worth about 1 USD, whereas the price of Bitcoin can swing sharply from one day to the next.
What is it used for?
- Holding dollar value in digital form, without a foreign-currency bank account.
- Sending or receiving money remotely, quickly, on a blockchain.
- Moving from one wallet or platform to another without exposing the value to Bitcoin’s swings.
Its limits
- Its stability depends on the issuer and the reserves behind it: “stable” does not mean “risk-free”.
- It moves on several networks (TRC20, ERC20, BEP20…): a transfer on the wrong network can be lost.
- It is not legal tender: its value in CFA francs follows the dollar and the exchange rate.
How to get it with Mobile Money
With PayFaye you pay with Wave, Orange Money, MTN or Moov, and the USDT goes to your wallet. Conversely, you can sell your USDT and receive CFA francs on your Mobile Money number. The rate, fees and amount received are shown before you confirm.
Good to know
This guide is general information, not investment advice. The value of cryptocurrencies moves: only trade what you can afford to see fluctuate.
Frequently asked questions
- Is USDT always worth 1 dollar?
- It is designed to stay close to it, but its price can move slightly away. The rate in CFA francs shown before each order reflects the current market.
- Is USDT an official currency?
- No, it is a cryptocurrency issued by a private company, not legal tender.
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