Tether (USDT) is a cryptocurrency with a value meant to mirror the value of the U.S. dollar. The idea was to create a stable cryptocurrency that can be used like digital dollars.
Stable coins are cryptos meant to hold a stable value. They are generally pegged to $1 USD.
For example, Tether (USDT) and USDC are centralized cryptos whose value roughly mirrors the price of a dollar, while Dai is an attempt at a decentralized stable coin.
Some stable coins are backed by dollars like USDT and USDC, other stable coins use different mechanics to keep their peg (for example Dai is backed by crypto assets). Each stable coin is its own beast.
For exchanges that don’t deal in dollars, stable coins provide much needed liquidity and allow traders to go to a stable asset that mimics cash.
Details aside, suffice to say, in the volatile world of crypto, its nice to have some stability.
Below is a list of important cryptocurrencies and additional resources you can use to learn more about all the different cryptocurrency types.