What Are USDT and USDC?
USDT (Tether) and USDC (USD Coin) are leading stablecoins pegged 1:1 to the US dollar. USDT, launched in 2014 by Tether, dominates the market with over $110 billion in circulation. USDC, introduced in 2018 by Circle and Coinbase, emphasizes transparency and regulatory compliance, with a market cap exceeding $30 billion. Both are widely used on Binance for trading, transfers, and earning yields.
Key Differences Between USDT and USDC on Binance
- Issuer & Transparency: USDT’s reserves include cash, loans, and assets, while USDC holds cash and U.S. Treasuries, with monthly audits.
- Market Dominance: USDT has higher liquidity and more trading pairs on Binance (e.g., BTC/USDT, ETH/USDT).
- Blockchains: USDT supports 14+ networks (ERC-20, TRC-20); USDC operates on 15+ (ERC-20, Solana).
- Fees: Binance withdrawal fees vary by blockchain; TRC-20 USDT often has lower costs than ERC-20 USDC.
How to Use USDT and USDC on Binance
- Buy via bank transfer, credit card, or P2P trading.
- Trade across 1,000+ pairs (e.g., BTC/USDT, ETH/USDC).
- Convert to fiat or other cryptos with Binance Convert.
- Stake in savings products (USDT: up to 5% APY; USDC: up to 7% APY).
- Withdraw via preferred blockchain network.
Pros and Cons of USDT vs USDC
USDT Pros: Highest liquidity, lower fees on TRC-20, extensive trading pairs. Cons: Less transparency, regulatory scrutiny.
USDC Pros: Audited reserves, regulatory compliance, growing DeFi integration. Cons: Fewer pairs on Binance, higher ERC-20 fees.
FAQ: USDT vs USDC on Binance
Q: Which is safer?
A: USDC is considered safer due to transparent reserves.
Q: Are fees different?
A: Yes—USDT on TRC-20 is cheaper; USDC fees depend on the network.
Q: Can I stake both?
A: Yes, via Binance Savings, with varying APYs.
Q: How to convert USDT to USDC?
A: Use Binance Convert for zero-fee swaps.
Choose USDT for liquidity and low-cost trades; opt for USDC for transparency and compliance. Binance supports both, enabling flexible crypto strategies.
