Tether is what's come to be known in financial circles as a stablecoin—stable because one Tether is supposed to be backed by one dollar. ... Once they have Tethers, people can send them to cryptocurrency exchanges and use them to bet on the price of Bitcoin, Ether, or any of the thousands of other coins.

What type of coin is tether?

Tether (USDT) is an Ethereum token that is pegged to the value of a U.S. dollar (also known as a stablecoin). Tether's issuer claims that USDT is backed by bank reserves and loans which match or exceed the value of USDT in circulation.

Is tether the best stablecoin?

Although competitors have popped up over the years, Tether is still the most popular stablecoin and widely used for trading, loans and earning interest.