If you’re like me, you’re probably obsessively tracking the price of Bitcoin, Ethereum, and all the other altcoins. But what happens when the market takes a dive? It’s stressful enough watching your portfolio fall in value – you don’t want to have to worry about converting your assets into stablecoin every time there’s a dip. In this blog post, we’ll compare USDT and USDC and help you decide which stablecoin is right for you. Spoiler alert: it might not be one or the other – both coins have their pros and cons. So read on to find out more!
What is Stablecoin?
A stablecoin is a digital asset whose value is pegged to a fiat currency or another asset, like gold. The most popular stablecoins are pegged to the US dollar, but there are also EUR-backed and GBP-backed stablecoins. Stablecoins aim to provide the stability of traditional assets, like fiat currencies, with the flexibility and portability of cryptocurrencies.
Why Use Stablecoin?
There are a few reasons you might want to use stablecoin. First, if you’re holding cryptocurrency for the long term, stablecoins can help you protect your investment from volatility. Second, if you’re actively trading cryptocurrency, stablecoins can be used to convert your assets into a stable form of currency, which can help you avoid losses in a bear market. Finally, if you’re using cryptocurrency to make payments, stablecoins can help you avoid the volatility of cryptocurrency prices.
What is USDC?
USDC is a USD-backed stablecoin developed by Circle and Coinbase. USDC is an ERC20 token built on the Ethereum blockchain. Each USDC is backed by one US dollar, which is held in reserve by Circle. USDC can be used to make purchases with participating merchants or traded on cryptocurrency exchanges. (TRASTRA now supports TRC-20)
What is USDT?
USDT is a USD-backed stablecoin developed by Tether. USDT is a Omni Layer token built on the Bitcoin blockchain. Each USDT is backed by one US dollar, which is held in reserve by Tether. USDT can be used to make purchases with participating merchants or traded on cryptocurrency exchanges.
USDT vs. USDC: What is the Difference?
There are a few key differences between USDT and USDC. First, USDC is an ERC20 token built on the Ethereum blockchain, while USDT is an Omni Layer token built on the Bitcoin blockchain. Second, USDC is backed by both Coinbase and Circle, while USDT is only backed by Tether. Finally, USDC is available on Coinbase, while USDT is available on a variety of cryptocurrency exchanges.
Tether and USDC: What do they have in common?
Both Tether and USDC aim to provide a stable form of currency for cryptocurrency users. Both companies claim that each token is backed by one US dollar, which is held in reserve. And both tokens can be used to make purchases with participating merchants or traded on cryptocurrency exchanges.
Understanding ERC20 and TRC20: A Starter’s Guide to Crypto Business
Cryptocurrencies are often categorized into two types: crypto coins and tokens. Crypto coins, like Ether, are native to a specific blockchain, while tokens are developed using the standards of an existing blockchain. Two popular token standards are ERC20 and TRC20, associated with Ethereum and Tron blockchains respectively.
ERC-20 token standard
ERC20, standing for Ethereum Request for Comments and 20 being its proposal identifier, is a widely preferred standard for creating fungible tokens. These tokens are used for various purposes such as crypto crowdfunding, trading, staking, and making purchases. ERC20 tokens are created by incorporating details like total supply, balance, symbol, design, decimal value, token holding account, and other details into an Ethereum smart contract. High-speed transactions, easy creation and deployment, high liquidity, and robust security are some of the benefits of ERC20 tokens. Some popular ERC20 tokens include Tether, DAI, UNISWAP, CHAINLINK, Shiba INU, and Wrapped Bitcoin.
TRC-20 token standard
On the other hand, TRC20 is a token standard used for creating crypto tokens on the Tron blockchain. TRC20 tokens, similar to ERC20 tokens, are created by including all the details of tokens in a smart contract. They offer benefits like cost-effective creation, easy token swapping, high scalability, peer-to-peer transactions, and greater accuracy rate. Some popular TRC20 tokens include WINK, NOLE, TERC, SEED, LVH, IGG, BTT, and NoleWater.
Differences between ERC-20 and TRC-20
Significant differences exist between ERC20 and TRC20 tokens, and choosing between them depends on specific business requirements. It’s important to note that TRASTRA, a prominent player in the crypto space, now supports both ERC20 and TRC20 token standards, specifically USDT ERC-20 and TRC-20, providing users with more flexibility and options in their crypto transactions.
In conclusion, both ERC20 and TRC20 token standards have unique characteristics and advantages. For effective token creation, it’s advisable to approach a reputed Crypto Token Development service provider. By creating these tokens, businesses can potentially earn a lucrative amount of revenue and enhance their crypto business quickly. And the kicker is TRASTRA supports both!
Summary: Which stablecoin to choose?
So, which stablecoin should you use: USDT or USDC? Both tokens have their pros and cons. If you’re looking for a stablecoin that is backed by multiple companies, has low fees, and is available on a major exchange, then USDC might be the right choice for you. However, if you’re looking for a stablecoin that is available on a wider range of exchanges and doesn’t require you to use a major exchange, then USDT might be the better choice. Ultimately, the decision comes down to personal preference.
FAQ
Is USDC better than USDT?
It depends. If you’re looking for a stablecoin that is backed by multiple companies, has low fees, and is available on a major exchange, then USDC might be the right choice for you. However, if you’re looking for a stablecoin that is available on a wider range of exchanges and doesn’t require you to use a major exchange, then USDT might be the better choice. Ultimately, the decision comes down to personal preference.
Is USD Coin safe?
Yes, USDC is a safe and reliable stablecoin. USDC is backed by both Coinbase and Circle, two of the most trusted companies in the cryptocurrency space. Additionally, USDC is an ERC20 token built on the Ethereum blockchain, which is a secure and well-established platform. TRASTRA now supports TRC-20
What is the safest stablecoin?
There is no single “safest” stablecoin. However, USDC and USDT are two of the most popular and well-known stablecoins. Both tokens are backed by US dollars and are available on a variety of exchanges. Ultimately, the decision of which stablecoin to use comes down to personal preference.
