Tether (USDT) is a cryptocurrency that was created in 2014 with an idea of creating a digital dollar. It is a stablecoin that is fully backed by the US Dollars in a 1:1 ratio. This means that all the Tethers in circulation reflect the amount of reserves in US Dollars and are supposed to be priced close to $1. The purpose of Tether is to convert cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan. Tether (USDT) is issued on the TRON, Ethereum (ETH), EOS and many other blockchains. It is also the most common and used stablecoin amongst all coins that we know.

Since USDT is deemed as a stablecoin, it is often considered to be a powerful tool for avoiding extreme volatility in the cryptocurrency markets. Traders sell other cryptocurrencies when they expect a sudden drop in price of a cryptocurrency. Others, purchase and store USDT in their wallets and wait for the right time to buy cryptocurrencies. While cryptocurrencies can be traded in other cryptocurrency pairs, one of the safer ways to trade cryptos is in the USDT pair.