Re: Difference between BTC/USDT and BTC/USD

Quote from: Joel_Jantsen on November 20, 2020, 08:28:00 PM

Quote from: WazY on November 20, 2020, 05:40:58 PM

My question, is the any difference (in term of day trading profit) between BTC/USD and BTC/USDT? Roll Eyes

There is no direct difference, but indirectly yes! If the value of the cryptocurrency goes up, the value of fiat currency that is USD will go down. In simpler terms, you could buy 1 BTC for $40 years ago and now you have to pay $15k+ to buy 1 BTC. As long as your BTC-USDT/USD is concerned, you can't buy USD from a digital exchange. You can either convert it or liquidate it.

Good explanation but I was wondering what is the difference between USD and USDT then in terms of market because USDT is going to be always 1:1 with USD and hence both the markets are same technically.

There is a lot of confusion around USD and USDT but the difference is quite clear that one is a fiat currency while the other is meant to match the fiat currency while working as a crypto. You basically need to convert your USDT into US dollars or USD before you can actually use them.

I don't know why exchanges don't offer USD markets but they should offer it if they are already offering USDT markets.