Stablecoins for Beginners: USDT, USDC and Risks
Understand stablecoin use, issuers, networks, depegging and counterparty risk.
Stablecoins Aim to Track Fiat
USDT and USDC generally target one US dollar and are used for trading, transfers and temporary positioning. They are not bank deposits and are not the same as government-guaranteed cash.
The Same Stablecoin Exists on Multiple Networks
The same USDT symbol can exist on Ethereum, Tron, BNB Chain and other networks. Sender and receiver networks must match, and fees, speed and address formats differ. Always verify platform support.
Watch Depeg, Issuer and Platform Risk
A stablecoin can deviate from its target, while issuer reserves, redemption policies, regulation and exchange risk affect access. Do not keep all emergency funds in one stablecoin or one platform.
