USDT or USDC: What to choose
Since Binance added support for USDC on the NEAR Protocol, NEAR users have had a question about which stablecoin to store their funds in. In this article, we will try to explain the differences between them.
What are stablecoins?
Stablecoins are tokens linked to assets like the dollar, euro, or gold. In the Web3 world, when people talk about "stablecoins," they usually mean tokens tied to the US dollar. The most popular ones are USDT and USDC.
The fundamental difference is that Tether and Circle, two different companies, create these coins (that's why you see 'T' or 'C' in the token names). This makes people wonder about how secure they are and how these companies make sure their stablecoins stay steady.
The backing of USDT can be monitored on their website. As of the time of writing this article, the backing looks as follows:
As of the time of writing, USDT on the NEAR Protocol is available on exchanges such as Binance, KuCoin, Gate, and Bitfinex.
Historically, USDC has had better transparency, and you can check the backing here.
As of the time of writing, USDC on the NEAR Protocol is available on Binance.
Historically, USDC is considered more transparent and secure, but USDT has a longer history. Both tokens are great for storage and transfers, but typically, for exchanges and user transfers, USDT is more popular, while in the DeFi space, USDC confidently takes the lead.
Whatever you choose for yourself, it's important to keep your stablecoins in your own wallet, not on the exchange. That's why, in the HERE wallet, we've made transfers of USDT and USDC free of fees and gas, making HERE the best and most convenient place for your assets.
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