We all know that assets are urging hefty waves in the financial industry, also creating an impact in other areas of our lives. Although BTC was the first cryptocurrency to receive mass adoption, the growth of stablecoins in the market is outpacing most other cryptocurrencies. So, USD coin (USDC) and Tether (USDT) soon gained momentum.
USDC and USDT Comparison
If you plan to invest in stablecoin, we are pretty sure that you heard of USD coin (USDC) and Tether (USDT). They are in the top-15 list in terms of market cap and influence.
We are quite confident that we are on the cusp of a new financial future. USDC and USDT will likely achieve mainstream adoption.
Their positions show their important role in companies and the cryptocurrency community.
And these currencies are often compared. Wondering which USD stablecoin is right for your business? We collect the benefits of two giants USDC and USDT. Let’s take a deeper dive into what differences the two offer.
What Are Stablecoins?
Stablecoin refers to a range of cryptocurrencies that derive their market value from some external reference. Unlike fiat money, they are backed by a reserve asset like during the Gold Standard Era.
Being asset-backed enables stablecoins to maintain their prices and avoid excess volatility, which essentially defines the sphere.
What Is USD Coin (USDC)?
The USD Coin (USDC) is an ERC-20 coin, based on the Ethereum blockchain. USDC was launched in 2018 by the Centre Consortium, powered by the massive cryptocurrency exchange Coinbase and Circle Internet Financial. USDC is the only stablecoin currently supported by Coinbase. This coin, USDC, is built on the Ethereum blockchain as an ERC-20 token.
According to Coin Market Cap, USDC has a $14 billion market cap with a daily volume worth of $3 bln.
USDC is in the top fifteen list on every change service and is pegged 1:1 to actual U.S. dollars. If you store USDC on Coinbase, it is quite easy to switch your USDC back into fiat and withdraw to your bank account. So you can cash out stablecoin and get fiat like USD quickly.
If you would like to know where to buy USD Coin (USDC), the top exchanges on the market for trading in USD Coin (USDC) are currently Binance, Huobi Global, OKEx, Coinbase Pro, and MXC.COM.
What Is Tether (USDT)?
Tether is a stablecoin issued by Tether Limited company. Launched in 2014, USDT was initially backed by equivalent reserves, and now these tokens are fully backed by Tether’s reserves. The idea behind Tether was to create a stable cryptocurrency that can be used like digital dollars, or “stablecoins.” USDT is used as a way to hedge against crypto market volatility due to its stability.
Since USDT is the biggest stablecoin by high margins on the market, it provides high liquidity to its users. According to Coin Market Cap, USDT has a $52 bln market cap. Most notably, USDT has a daily 24-hour volume that is more than $153 bln, almost twice bigger than BTC has. It is the most liquid cryptocurrency in the world.
This makes it perfect for traders who need easy access to transfer funds. You can enter and exit trades without huge changes in price (like you would with Bitcoin or ETH). And if you prefer trading stablecoins only, then the tax liability is smaller or close to zero.
It is also a good use as a medium of exchange, and not just for investors or traders. More and more companies are using this stablecoin as a form for business-to-business financial transactions. Freelancers choose to get a salary in USDT.
USDT: What Will Be Next?
Designed to be backed 1:1 by fiat (US dollars), Tether tokens (USDT) are minted or burnt (destroyed) as the reserves held by Tether (the company) increase (via deposits) or fall (via claims against the tokens). In this way, tokens are seen as a stable store of value in an otherwise highly volatile cryptocurrency ecosystem.
Should You Use USDC or USDT?
Everything depends on your investing plan, specific needs, market situation, and your financial portfolio.
USD coin is most commonly used by institutions in the United States (or where Coinbase is offered in other countries). If your customers are businesses, then you will likely want to use USD coin to send invoices to your customers. If you are a Gilded user working with Gilded’s Coinbase integration, it makes sense to use USDC.
On the other hand, Tether (USDT) is most commonly used by traders and investors in the market. Tether is a tool that allows traders to protect profits and stay in crypto. It allows you to keep your money on exchanges without subjecting yourself to volatile bitcoin prices. If your customers are traders, then perhaps USDT is the right choice.
I Have Learned About These Currencies. What Is Next?
Hopefully, you have boosted your skills about these digital assets (USDT and USDC), available on the market. You need to know about the difference between USDC and USDT, their ecosystems, technical differences between them, and history.
Finally, you should be able to make a choice between USDT and USDC before checking cryptocurrency exchanges.
If you have followed the whole guideline, we are pretty sure that you have noticed: they are not in competition. Instead, they have opposite goals, and they offer different options. So, USDT and USDC can both live side by side, and they both can be a part of your portfolio.
Key Things That You Should Remember Before Investing
The first thing you should know is that all investments will have their pros and cons. Despite the exciting functionality both of these stablecoins offer, the technology, and the cryptocurrency industry are new and volatile. You should prepare for extreme volatility in this ecosystem. Just imagine that stablecoins have a chance to surge up to 40-50% in a single day.
You should not get upset if things are harder at the beginning. You will boost your skills and will be able to build your own investment strategy over time if you put some effort into it.
Unfortunately, most people do not do this, and they put themselves in a dangerous situation.
When someone is alone with no accountability or guidance, they tend to struggle to find ideas and lack credible information. In uncertainty, when finding relevant sources is uneasy, they might resort to watching and mimicking other, presumably better informed, investors’ decisions. And it leads to huge mistakes. In other words, they often make the same mistakes over and over again. Simply put, this is not a good recipe for success. Without any research, they do not have a financial strategy and have a great chance to lose their funds, even storing USDC and USDT.
Before you choose a stablecoin and make your first transaction, please, you should research background info on each stablecoin on their websites, threads on Reddit, and other social media platforms. Yes, it will take a lot of time, and it is nearly impossible to compare digital assets correctly. But it is really worth it.
In order to check out everything you need to know about the asset, you have to do hours of research and pay close attention to free resources that will help you with this.
If you have found a stablecoin that suits your strategy (USDC or USDT), it is time to make your first step towards investing. We have a solution that will definitely help you below.
Where Can You Buy USDT?
Are you ready to make your first USDT purchase? We have a service, suitable for you. Take a look at NeuronEx. So, you will be able to get cryptocurrencies quickly and easily. Let’s dig in!
Is It Possible to Buy These Stablecoins on NeuronEx?
Yes, you can buy Tether. This is a platform designed for financial transactions: for crypto to fiat and crypto to crypto exchange. You will be able to convert coins quickly and securely right here.
It has a user-friendly interface and its useful tools make the purchasing process smoother than ever before.
Moreover, it offers a great range of payment methods. Among 200 means of payment, there are credit and debit cards, and bank transfers.
Mobile App for Tether Purchase
As a great plus, NeuronEx also has an app accessible for Android and iOS customers. When it comes to mobility and convenience, it is incredibly popular among users. Track stablecoins, use a converter, and manage your budget all in one place.
How Can I Make a Transaction?
It is quite simple: you may use a converter, available here. Sign up for free, choose the most suitable type from the list of payment methods, and make your first financial transaction.
As a great plus, we have no hidden commission for USDT purchases. You can gain coins at a good cost and almost zero fees.
How to Sell USDT for Cash?
Surprisingly, the variety of options to cash this asset out and other cryptocurrencies remains quite limited, but still, it is a top priority for the whole community. Unfortunately, it is impossible to transfer Tether into cash directly, but you can use our service for crypto to fiat transactions.
NeuronEx makes it easy for you to participate in the world of stablecoins. Transfer your Tethers directly from NeuronEx to your bank account in just a few swipes. Then, having fiat currency like American dollars in your wallet will let you cash it out at any moment.
And last but not least, as soon as you get USDT, you need a place to store your funds no matter if you prefer trading or HODLing money.
Simply put, once you have gained a coin on an exchange, you will need a safe place to store your holdings. Using an online wallet, instead of storing your crypto digital coins with an exchange, gives you greater control over your virtual funds.
These wallets provide users with a digital solution for securely storing money and managing digital coins. These online wallets allow users to send and receive coins, store and spend, and also trade cryptocurrencies.
So, you should also try an online wallet, accessible on NeuronEx.
It is a great place to store your money safely and securely. You will be able to access and manage your portfolio in a real-time mode and control your stablecoins. Make transactions anonymously, convert and send cryptocurrencies all in one place.
That is all for now. We hope that this article will be useful for you, and you will be able to make the right decision on which stablecoin to buy. So, no time for waiting. Sign up for free, and enjoy all tools available here.