I use Binance as my exchange and was wondering if USDT was a good place to hold funds between paying and selling. Thanks!
Holding Tether is equivalent to holding Bitfinex USD liabilities. Bitfinex treats them interchangeably.
If you're day trading cryptocurrency, you always have counter party risk: the exchange you're using can disappear or get hacked, and then the money is gone. When you're holding USDT on Binance, you have
two sources of counter party risk -- you trust Binance to pay out your USDT, and you trust Bitfinex/Tether to hold the the 1:1 peg with USD.
If you want to hold USD long term (like during a bear market), then you should hold it in a real bank account. I can understand why people use USDT for short term trading, but it comes with the above risks.