Tether (USDT) is a stable coin. Stable coins have been lauded as the holy grail of crypto and the only avenue for the space to expand because of its ability to shield investors from volatility. Aside from regulatory concerns, Bitcoin and altcoin volatility is one of the reasons why the space is still considered “risky”. But as always, risky is relative and the same volatility is a source of profits for savvy traders.
Now, out of this stability we have Tether which happens to be the most liquid stable coin in the space and theoretically backed by equal reserve of USD. That is, for every USDT in circulation, an equivalent amount is held at reserves.