Tether is a type of cryptocurrency known as a stablecoin. It is designed to maintain a stable value by being pegged to a reserve of assets, typically the U.S. dollar. This means that for every Tether coin issued, there is an equivalent amount of U.S. dollars held in reserve, making it easier for users to trade and transact without the volatility often associated with other cryptocurrencies like Bitcoin or Ethereum. Tether is commonly used in the cryptocurrency market for trading and as a means of transferring value. It allows users to move funds quickly between exchanges or wallets while minimizing the risk of price fluctuations. Many traders use Tether to preserve their capital during market downturns or to facilitate transactions in decentralized finance (DeFi) applications.