Short definitions of the terms that come up most often. Each entry should be a single short paragraph at most, written for someone who has never seen the term before.
\nA digital token designed to keep a stable value, usually against a regular currency like the US dollar or a commodity like gold. USDt is a US-dollar stablecoin. XAUt is a gold-backed stablecoin.
\nA regular government-issued currency (US dollar, euro, peso, naira, etc.) whose value comes from government decree and shared trust, not from being backed by a physical commodity like gold.
\nA digital token recorded on a blockchain. Bitcoin and Ether are the best-known examples. Stablecoins are a kind of cryptocurrency designed not to swing in price.
\nA shared public ledger that records transactions. Many computers around the world keep copies and agree on its contents. Once a transaction is recorded and confirmed, it cannot be changed or undone.
\nIn crypto conversation, the network is the blockchain. "Send USDt on Tron" and "send USDt over the Tron network" mean the same thing. Sender and receiver must use the same network.
\nA long string of characters (often starting with 0x on Ethereum or T on Tron) that identifies a destination on a blockchain. Sending to a wrong address is irreversible. Always check the first and last few characters before confirming a send.
\nThe unique identifier the blockchain gives to your transaction. You can paste it into a block explorer to see the status. Useful when you need to prove to a recipient that you sent something, or when contacting support.
\nThe app or device that holds the keys to your crypto. A self-custodial wallet means you, and only you, hold the keys. A custodial wallet means a company (an exchange, for example) holds them for you.
\nDescribes a wallet where you hold the keys yourself. Full control, full responsibility. Tether Wallet is self-custodial.
\nDescribes an arrangement where a company holds the keys to your funds. An exchange account is custodial. Convenient, but you depend on the company.
\nA small physical device (looks like a USB stick) that keeps your private keys offline. You plug it in to sign a transaction, then unplug it. The keys never touch an internet-connected device. Mainly used for long-term storage of larger amounts.
\nA list of 12 or 24 ordinary words that controls a self-custodial wallet. Also called recovery phrase or mnemonic. Whoever has the words controls the wallet. Never share it.
\nThe cryptographic secret that signs transactions for an address. The seed phrase is a human-readable way to back up the private key.
\nThe small fee paid to a blockchain network to process a transaction. Paid in the network's native token (ETH on Ethereum, TRX on Tron, and so on), not in USDt. The wallet usually handles this, but you need some native token in the wallet for it to work.
\nAny service that converts local currency into crypto. Exchanges, P2P platforms, and some local agents are on-ramps.
\nThe reverse: a service that converts crypto back to local currency.
\nA trade between two people without an exchange in the middle. Often used in countries where bank-based exchanges are limited. Most retail scams happen on or near P2P trades; use platforms with proper escrow.
\n"Know Your Customer". The identity-verification step that regulated services run, usually involving an ID document and a selfie. Required by law in most countries.
\nA unit of value recorded on a blockchain. USDt, XAUt, and USAt are all tokens.
\nAfter a transaction is sent, the network includes it in a block and then adds more blocks on top. Each additional block is a confirmation. Most receivers accept a payment after one or a few confirmations.
\nA public website that lets anyone look up addresses and transactions on a blockchain. Examples: tronscan.org for Tron, etherscan.io for Ethereum. The transaction ID from your wallet is what you paste in.
\nIn P2P trades, escrow is the platform holding the seller's USDt until the buyer confirms payment. It is what stops the seller from disappearing after you have paid. Never trade off-platform.
\nA small program that lives on a blockchain and runs automatically when called. USDt itself is implemented as a smart contract on each network it runs on.
\nThe company that creates and redeems the stablecoin. Tether International is the issuer of USDt, XAUt, and (with caveats) USAt.
\nA stablecoin whose value is held stable by the issuer keeping cash and cash-equivalent reserves equal to the supply of tokens. USDt is fiat-backed.
\nA stablecoin whose value is held stable by the issuer holding a physical commodity in reserve. XAUt is commodity-backed; one XAUt represents one troy ounce of gold.
\nA stablecoin that tries to hold its price stable using software rules rather than reserves. Several have collapsed in spectacular ways. Most widely used stablecoins today are not algorithmic.
\nA general rise in prices, which means each unit of currency buys less than it used to. People in high-inflation countries often hold USDt as a way to keep their savings in dollars instead of in a currency that is losing value.
\nThe target value a stablecoin is designed to track. USDt's peg is one US dollar. XAUt's peg is one troy ounce of gold.
\nWhen a stablecoin moves significantly away from its peg and stays there. Short-term wobbles on a single exchange are usually a liquidity issue on that exchange, not a true depeg.
\nThe primary market is between the issuer and large exchanges (where new tokens are minted or redeemed). The secondary market is where regular users buy and sell on an exchange. Small price drifts on the secondary market usually come from local supply and demand, not from anything wrong with the stablecoin.
\nThe standard unit gold is priced in. Slightly heavier than a regular ounce. One XAUt represents one troy ounce of gold.
\nThe ability of a stablecoin issuer to freeze or block specific addresses from using the token. Performed at the token-contract level, not by the wallet app. Tether International (the issuer) administers this for USDt, not Tether Data (the wallet publisher). See the Group A refusal template (active freeze) and the Group B refusal template (general freeze questions) for the canonical responses.
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