"USDT or USDC? What is the difference between 'digital dollars' and why should you care? 🤔"
Both USDT and USDC are stablecoins, meaning they are cryptocurrencies designed to maintain a stable value, usually 1-to-1 with the US dollar. However, they are not exactly the same.
The Key Difference
USDT (Tether): It is the largest and most used stablecoin in the world. It has the highest liquidity, making it very easy to buy and sell. Although it has been questioned in the past regarding its reserve composition, it remains the primary currency for most traders.
USDC (USD Coin): It is the second-largest stablecoin. It is considered the safest and most transparent option, as it is audited monthly by an accounting firm. Its reserves are almost entirely composed of cash and US Treasury bonds.
Why should you care?
If you are looking for the highest liquidity and ease of trading, you are likely to use USDT, as most trading pairs use it.
If you prioritize transparency and the security that the reserves are 100% backed, USDC might be the best option for you.
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