USDT (USD Tether) has been appearing in the news a lot in the recent months, and most of the news has been negative. A lot of doubt has been cast on whether the USDT is fully backed by USDs. Tether, the organisation managing USDT has fudged their statements by declaring that the USDTs are backed by "USD liquid assets", which are not necessarily cash. Furthermore, there are also accusations of shenanigans going on between Bitfinex and Tether that are still undergoing investigations.

Despite all this, USDT is still one of the strongest stablecoins in the market. In Binance, the BTC/USDT pair has a very high volume and deep order book when compared to its next closest competitor, the USDC. However, I have decided to use USDC instead of USDT if I need to convert my BTC holdings to pseudo-FIAT as USDC is run by Coinbase and they have been very explicit about each USDC being backed by USD. In addition, the USD used to back USDC is being kept in an account that is monitored and audited. Contrast this against the Tether reluctance to get audited and you will see why USDC may be better for the cryptocurrency markets in the longer term.