What is Tether (USDT)? - Complete Stablecoin Guide

Tether (USDT) is the most popular stablecoin pegged to the US dollar, maintaining a stable value of approximately $1 USD. USDT is widely used for transactions, trading, and gaming at Melondex without exposure to cryptocurrency price volatility. Our partnerships with Coinbase and Blockchain.com make USDT transactions seamless. Learn more about how to buy crypto on site and cryptocurrency exchanges.

What is Tether (USDT)?

Tether is a stablecoin backed by reserves (US dollars and other assets) held by the issuing company. Each USDT token maintains a value of approximately $1 USD, making it ideal for:

• Storing value without price fluctuations
• Making transactions without volatility concerns
• Trading and arbitrage
• Gaming with stable funds

Brief History

• 2014: Launched as RealCoin, later renamed Tether
• 2015: Bitfinex became first exchange to trade Tether
• 2018: Reached $500 million market cap, faced backing concerns
• 2019-Present: Expanded to multiple blockchain networks, maintained market leadership

How Tether Works

Stablecoin Mechanism:

• Each USDT backed by equivalent reserves
• Market mechanisms maintain $1 peg
• Arbitrage corrects price deviations
• Regular audits verify backing

Available Networks:

• TRON (TRC-20): Fast, low-cost transactions (recommended for gaming)
• Ethereum (ERC-20): Widely supported, higher fees
• Bitcoin (Omni): Original implementation, less common
• Other: Polygon, Solana, Avalanche

Key Features

• Price Stability: Maintains ~$1 USD value
• Fast Transactions: Quick confirmations, especially on TRON
• Low Fees: Minimal transaction costs
• Multi-Chain: Available on multiple networks
• Widely Accepted: Largest stablecoin by market cap

Using USDT at Melondex

Depositing:

1. Log into Melondex account
2. Navigate to wallet → Deposit
3. Select Tether (USDT)
4. Choose network (TRON recommended for low fees)
5. Copy deposit address
6. Send USDT from your wallet
7. Wait for confirmation (seconds on TRON, minutes on Ethereum)

Withdrawing:

1. Log into Melondex account
2. Navigate to wallet → Withdraw
3. Select Tether (USDT)
4. Choose network (must match your wallet)
5. Paste withdrawal address
6. Enter amount and confirm

Benefits:

• Stable value - no volatility
• Fast deposits and withdrawals
• Low fees, especially on TRON network
• Perfect for frequent transactions

USDT vs Other Cryptocurrencies

USDT vs Bitcoin:

• USDT: Stable price, better for transactions
• Bitcoin: Variable price, store of value

USDT vs Ethereum:

• USDT: Stable value, lower fees on TRON
• Ethereum: Variable price, smart contracts

USDT vs Other Stablecoins:

• USDT: Largest market cap, most liquid
• Others: Similar stability, different backing

Network Selection

For Gaming (Recommended):

• TRON (TRC-20) - Fastest, lowest fees

For Trading:

• Ethereum (ERC-20) - Widely supported
• TRON (TRC-20) - Lower fees

Important: Always ensure network matches between Melondex and your wallet.

Related Guides

• What is Bitcoin (BTC)?: Learn about Bitcoin
• What is TRON (TRX)?: Fast network for USDT
• What is a Cryptocurrency Exchange?: Learn about exchanges
• How to Choose a Cryptocurrency: Guide to selecting crypto

Conclusion

Tether (USDT) provides price stability for crypto transactions. With fast confirmations and low fees (especially on TRON), USDT is ideal for gaming, trading, and everyday crypto use at Melondex.

Always verify network compatibility and addresses before sending USDT.