It can be confusing for people to know the difference between the two. These are terms that people may hear often, but they are not entirely sure what this means. Tethering allows one device to share the internet connection to another device. Hotspot, on the other hand, serves to be that one device that different devices can connect to. For example, your phone may be used as a mobile hotspot.
This means that all of the devices that will connect to you know your password and will be able to connect to the internet. When you are tethering, you are sharing your internet connection with another device. Both can provide fast connections depending on the chosen provider.