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A wine decanter is a vessel (usually made of glass) used to serve wine. The process of decanting wine, then, is the act of pouring the wine from a bottle into a decanter. In the home setting, you'll use the decanter to serve the wine into individual glasses.
If the wine is stored in the decanter, you'll want to enjoy it within two to three days. Storing wine for any longer than that once it has been opened is not recommended without a wine preservation system.
From young wine to old wine, red wine to white wine, and even rosé, most types of wine can be decanted. In fact, nearly all wines benefit from decanting for even a few seconds, if only for the aeration. However, young, strong red wines in particular need to be decanted because their tannins are more intense.
Yes, if done properly, it means any sediment that has accumulated in the bottle won't end up in your glass. Decanting, ideally into a wide-bottomed decanter that increases the wine's surface area, exposes the wine to oxygen, speeding up its transformation.