Which Stablecoin Should You Use? How to Swap Between Cryptocurrencies?

Cryptocurrency is too volatile to trade safely, and you might need some money to be available directly from your cryptocurrency wallet while not risking that their value might drop in the most unsuitable moment. For this, we recommend paying attention to stablecoins. 

Now, there are many stablecoins. However, to choose the one you can really count on, you have to have a clear idea what project is behind those stablecoins that you might have to select for your portfolio.

The most popular coins of such type are SUDT and USDC. While there was a lot of hype around both of them, they can be considered for your portfolio. And our short USDT vs USDC comparison will help you to make the right choice. 

Stable Coins

USDT and USDC – What Is Better to Choose?

USDC is a stablecoin launched and supported by Coinbase and Circle Internet Financial. While initially, the coin was supported by Coinbase only, but now, it is listed on the majority of cryptocurrency exchanges.

USDC is an ERC-20 token. Along with the ethereum blockchain, the token is supported by such blockchains as Algorand, Stellar, Solana, and Tron.

USDC is 100% backed by USD. Every USDC coin circulating in the market has an equivalent in USD stored in a special account. It means that USDC is always equal to 1 USD.

Now, USDC coins are popular in DeFi. However even though they are considered reliable and are trusted by many traders, the main drawback of the coin is that it is centralized. Circle Internet Financial controls the coin, and it depends on the company whether the coin has the future.

USDT is the first stablecoin in the crypto history. It is also known as Tether. It is the major stablecoin based on the market capitalization. This coin is used by many businesses for B2B transfers.

USDt is supported by the majority of blockchains such as EOS, Ethereum, Bitcoin, Algorand, SLP, Tron, and many more. In total, the number of these blockchain exceeds the number of blockchains that support USDC.

There was a scandal around Tether though. It was caused by the doubt that the coin was backed by something indeed. After Tether provided auditing reports with proof that the stablecoin is 100% backed, the issue is considered to be solved.

What Is Better?

If you are selecting between these two coins, you shall consider that both of them are centralized. It means their future is determined by the companies that manage them, not by the community. Both coins are backed, but USDC is said to be backed by USD, and USDT is backed by USD along with valuable papers. The second option is less reliable because Tether hasn’t disclosed by what types of papers the coin is backed, and this is the main concern for those who believe that Tether might be not as reliable as other stablecoins, including its main competitor USDC.

While both coins are good for now, the main drawback of both of them is that behind each of them, there is a company. If a company gets bankrupt, you will lose your money invested in one of the stablecoins.

Bottom Line

Stablecoins have taken their niche in the world of cryptocurrency. However, they have their pros and cons. Therefore, you shall check all the risks before buying one or another stablecoin. In some cases, it is better to choose a BTC swap or buy any other decentralized cryptocurrency.

Decentralized coins are managed by the community and their prices are dictated by the usual market factors. Therefore, if you are investing in them, you are risking but you do not depend on any company. 

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