Bitcoin Forum

Is it safe to say, that there is not much difference between selling my btc to fiat usd on coinbase to changing them for usdt on binance? Or can someone explain me in simple words the function of USDT ?

its a cryptocurrency that wants to mimic price of a dollar but sometimes the price fluctuate, 1 usdt= 0.99 usd, and sometimes 1 usdt=1.01 usd and other times 1 USDT = $0.89

The main function of USDT is to enable virtual USD transfers to crypto-currency exchanges that are cut off from traditional banking.

Apart from slight price fluctations the main problem with USDT is that it's centrally issued by an effectively unknown entity. So while relatively stable due to being "backed" by USD... you have no guarantuee that USDT isn't running fractional already. Which means the risk of a "default" is higher with USDT on Binance than with USD in Coinbase. In other words, buyer beware.

if you use coinbase you will get safe way but need to verify your ID

USDT simple is dollar, but it is crypto currency.

If you want to sell your coins, do it in Coinbase for real money, and not for the USDT scam.

Just like others already said, you can't really know if every USDT in the market is really backed by the dollar. They already got problems with their banks in the past, like all incoming international wires to Tether being blocked and refused by their Taiwanese banks[1]. Or how they just created $70 million USDT from nowhere[2]. So I wouldn't trust them.

[1] https://www.cryptoninjas.net/2017/05/16/tether-international-wires-blocked-taiwan-banks/
[2] https://twitter.com/Bitfinexed/status/904867721652797440

Don't follow this, USDT isn't the dollar. It's a cryptocurrency which says it mimics the dollar, but if you look at the chart of this coin you'd see that at some points you could lose out on a good amount as it REALLY DOESNT MIMIC THE DOLLAR.


Not a big price to pay, as I'd rather lose some privacy then lose my hard earned money.


So it's a dice roll, avoid at all costs.


JUST GO WITH COINBASE DOLLAR AND NOT SOME BS ONE BY AN UNKNOWN ENTITY.

Okay but still function is unclear to me. How come it is helping out here if tis fluctuating all the time. I mean USD price for specific coin will also fluctuate in the same manner as it is being doing for the USDT as per your explanation. I mean is it really great help to convert to that USDT and then back into fiat currency? Whats the use and what about the fees, won't they kill the profit after performing three transaction of my original coin. IF its mimicing then I don't see and use rather than just pumping it with my hard earn money. Lolz. I mean may be I don't know exactly thats why I'm speculating that. So whats the real deal.

USDT = Tether is centralized token backed by real USD (as they claim but many doubt in it), It is also traded against real USD in kraken.

USD on coinbase is actually real dollar whose value will never fluctuate but you can't store those USD in other wallets or even in your bitcoin address like USDT. So both have their own pros and cons...