Crypto · November 1, 2026 · Teukoo Editorial Team

Stablecoins: what are USDT and USDC, and why use them?

A crypto that's always worth about 1 dollar: how USDT and USDC work, their benefits, their limits, and why Teukoo pays your winnings in stablecoins.

Bitcoin can lose or gain 5% in a single day. Great for speculating, much less so for paying, receiving winnings or holding a balance. That's exactly the problem stablecoins solve: cryptocurrencies designed to always be worth about 1 dollar.

What is a stablecoin?

A stablecoin is a digital token whose value is pegged to a traditional currency, most often the US dollar. 1 USDT ≈ $1, 1 USDC ≈ $1.

To hold that peg, the company issuing the token keeps reserves (cash, short-term government securities…) meant to cover every token in circulation. When someone deposits a dollar, a token is created; when they redeem it, the token is destroyed.

USDT and USDC: the two most used

• USDT (Tether): the most traded stablecoin in the world, widely used on exchanges and on the TRON network.
• USDC (Circle): the other major dollar stablecoin, known for regularly publishing attestations of its reserves.

Both work the same way for the user: you send, you receive, and the value stays stable.

Why they're useful

• No price surprises: what you send is worth the same when it arrives.
• Fast and available everywhere: a transfer takes a few seconds to a few minutes, any time, weekends included.
• Low fees on the right networks: a few cents, sometimes nothing.
• Easy to convert: most exchanges let you swap USDT and USDC for your local currency.

The limits to know

No financial tool is risk-free:

• trust in the issuer: a stablecoin is worth what its reserves are worth. The major stablecoins have stayed very close to $1, but brief deviations have happened in crypto history;
• choosing the network: the same stablecoin exists on several blockchains, and they don't talk to each other. USDT sent on the wrong network can be lost (see our networks guide);
• looking after your funds: in your own wallet, you're responsible for your recovery phrase.

And on Teukoo?

Stablecoins are at the heart of how Teukoo works:

• your balance is in dollars;
• you can deposit USDT (on TRON, BNB Chain, Polygon, Solana or Ethereum) or USDC (on BNB Chain, Polygon or Solana): 1 USDT deposited = $1 of balance;
• your withdrawals are paid in USDT or USDC, never in a volatile coin: what you've won doesn't shrink during the transfer.

Prefer to deposit Bitcoin or another coin? You can: it's converted to dollars when you deposit. All the details are in our deposit guide.

Key takeaways

• A stablecoin is worth about 1 dollar at all times.
• USDT and USDC are the two most used.
• They're fast, cheap and stable, but you need to pick the right network and keep your funds safe.
• On Teukoo, your balance is in dollars and your winnings are paid in stablecoins.

Frequently asked questions

Is one USDT worth exactly one dollar?

It's designed to be, and in practice its price stays very close to $1. Tiny deviations of fractions of a cent are normal on the markets.

What's the difference between USDT TRC-20 and USDT BEP-20?

It's the same stablecoin, but on two different blockchains: TRON for TRC-20, BNB Chain for BEP-20. They're not interchangeable: the sender and the recipient must use the same network.

How do I turn my USDT into local currency?

Send it to an exchange that supports your currency, then sell it and withdraw to your bank account or mobile money wallet, depending on what the exchange offers in your country.

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