Tether (also known as USDT) is a stablecoin that is based on the value of the U.S. dollar. As a result, theoretically, one USDT may be converted into one USD. Stablecoin USDT has seen its fair share of de-peggings, but overall it has stayed steady.
It’s important to note that the crypto market may be quite unpredictable if you’re wondering why a stablecoin tethered to the US dollar made our list of the best winter tokens. Because of this, risk-averse investors may opt to avoid trading on days that seem to be more volatile than normal.
The investor will be able to join and leave a market with ease if they own USDT since there will be no worries about running out of money. It’s worth noting, though, that USDT is frequently more popular than any other digital asset in this space — even Bitcoin.
USDT and Bitcoin, for example, have seen trade volumes of $40 billion and $26 billion, respectively, in the 24 hours before this writing. When it comes to stablecoins, USDT is one of the better options because of its interest rate.
Several third-party systems enable interest accounts for Tether, and several of them provide competitive interest rates. As an example, Crypto.com provides an APY of 7.20 percent on deposits made in USDT if certain requirements are met.