In the trading game, what coin is more stable? Let’s talk about usdc vs usdt, Which do you consider a more stablecoin and popular? Let’s find out here.
USDC vs USDT
You’ve been hearing a lot about trading tokens (tokens that can be traded on cryptocurrency exchanges) the past year.
One type of token you may have heard of is the USD Coin or USDT. It’s called a stablecoin because its value doesn’t change like other cryptocurrencies and it’s very much based on fiat currency.
Stablecoins are different than just regular trading tokens because they’re pegged to another asset (like gold or fiat currencies).
Let’s take a look and see how USD Coin compares to another trading token – the US Dollar Coin – usdc vs usdt.
What is USDT Tether?
USDT Tether is basically like a digital dollar. It’s called USDT because it’s pegged to the US Dollar.
The whole point of USDT is that you can use it for its 1:1 backing with the US Dollar and trade it for fiat currencies when the exchange rate isn’t very stable.
If you’re trading cryptocurrencies, you’ll need a reliable digital currency that has a stable value so that you can trade your assets at their true value and avoid losing money from volatility.
This means that if you have $1 in USDT, then it’s worth $1 in cash.
So, why do people use USDT? Since there are no actual coins involved when using USDT (meaning, there aren’t physical tokens), people can more quickly buy or sell any asset without being slowed down by having to wait for the coins to arrive at their destinations.
How Does USDT Tether Work?
Tether is a cryptocurrency token, which is issued on the Bitcoin blockchain technology through the Omni Layer Protocol.
It was one of the first stablecoins, meaning that its value is pegged to a specific fiat currency. In the case of tether, each Tether token (USDT) is backed by one US dollar held in reserve.
Tether holdings on the blockchain are transparent and can be viewed on [Omni Explorer].
What is USDC Coin?
USDC is a fully collateralized US dollar stablecoin. It is an Ethereum token that is backed 1:1 by US dollars held in accounts subject to regular public reporting of reserves.
USDC is an ERC-20 token, which means it lives on the Ethereum blockchain. This makes it easy for developers and wallets to build support for USDC without having to write custom code or run their own infrastructure.
How Does USDC Coin Work?
Now that you know how USDC works, let’s get down to the business of buying and selling it. As an open source framework, any project can build on the USDC protocol.
And a number of key players have indeed done just that; most notably, Coinbase has chosen to adopt USDC as its standard stablecoin, making it available for purchase alongside other cryptocurrencies on its platform.
You can also buy USDC using other cryptocurrencies at Circle Trade or through third-party exchanges like Binance, Bitfinex and Poloniex.
Why would you want to do this? For one thing, if you’re a crypto trader who deals in multiple digital currencies, having a stable coin like USDC in your portfolio is a smart move.
It allows you to keep your money in a currency with reliable value while still enjoying the benefits of trading digital assets – all without worrying about swings in the price of USDT.
USDT Tether vs. USDC Coin: Which should you use to trade cryptocurrency?
Which stablecoin should you use, if any? Both has the below features. However, considering the characteristics of each, you might choose USDT.
- Transaction Speed
Both stablecoins are completely different. Knowing it’s features and use case can give you an idea of what it can deliver to the market.
- USDC is based on Ethereum blockchain. It has a fixed supply of 100 million tokens, and can be used in various decentralized applications and exchanges. The token supports smart contracts, making it easy to develop different platform on the said blockchain.
- USDT is based on the Omni layer protocol which is built on top of Bitcoin blockchain. It supports the issuance, exchange, and redemption of a cryptocurrency pegged to the U.S. dollar via payment channels that are open to all interested parties at any time.
While reading this article you have gotten the information about usdc vs usdt and the difference between these two coins.
Since the cryptocurrency trading is increasing day by day, this article was put up to help you to understand the two tokens used for trading, which are a unique coin for having a marketing strategy.
This article has also provide you with a difference between these two coins.
If you have any question regarding this article, feel free to drop it in the comments below. Thanks!