USDT (Tether) is a stablecoin, meaning it is designed to maintain a fixed value, typically pegged to the US dollar at a 1:1 ratio. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, USDT aims to have minimal volatility. However, in certain situations, it may experience slight price fluctuations due to factors like market demand, liquidity issues, or concerns about Tether’s reserves and regulatory scrutiny. Despite these occasional deviations, USDT generally remains stable compared to other cryptocurrencies, making it a preferred choice for traders looking to avoid market volatility.
