What USDT and stablecoins are
Stablecoins are crypto designed to track a currency like the US dollar, which makes them popular for P2P trading.
A coin that aims to stay steady
A stablecoin is a type of crypto designed to keep a steady value by tracking a traditional currency, most often the US dollar. USDT (Tether) and USDC are the best-known examples. The aim is for one coin to stay close to one US dollar.
How they try to stay steady
The companies that issue these coins say they hold reserves, such as cash and short-term government debt, to back the coins in circulation. Different issuers publish different information about their reserves. It's worth reading about the issuer of any stablecoin you hold.
Why people use stablecoins
- They move like crypto: quickly, at any hour, between wallets around the world.
- Their value is meant to stay close to the currency they track, so they swing far less than coins like BTC.
- On P2P marketplaces they are a common way to hold or send a dollar-like value.
What "stable" doesn't mean
A stablecoin is not a bank deposit and is not guaranteed by a government. Its price can move slightly away from one dollar, and in rare cases further. Your local currency can also rise or fall against the dollar, which changes what a stablecoin is worth to you.
On Peerlyx
You can buy and sell USDT and USDC on P2P Trade and keep them in your Peerlyx wallet. Like every coin, your balance is shown per coin. Nothing in this lesson is investment advice.