# What is the difference between USD and USDT?

USD (United States Dollar) is the official currency of the United States, which is used as a medium of exchange for goods and services in the country and globally.

USDT ([Tether](https://www.investopedia.com/terms/t/tether-usdt.asp)) is a stablecoin cryptocurrency that is pegged to the value of the US dollar. This means that 1 USDT is intended to be equivalent to 1 USD, and it is used to provide stability to cryptocurrency trading by providing a digital representation of the USD that can be used to trade other cryptocurrencies.

The main difference between USD and USDT is that USD is a physical currency that is issued by the government, while USDT is a digital currency that is issued by private companies. Also, the value of USD is determined by market forces such as supply and demand, while the value of USDT is pegged to the value of USD.


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