Tether (USDT) vs. Binance USD (BUSD) • Benzinga - Aliens: AI Crypto News & Markets Updates
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Tether (USDT) vs. Binance USD (BUSD) • Benzinga

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Benzinga

Wed, May 25, 2022

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Two of the largest stablecoins are Tether (USDT) and Binance USD (BUSD) .

Why Do People Use Stablecoins?

Should I use Tether (USDT) or Binance USD (BUSD)?

Stablecoins are cryptocurrencies that are pegged to another currency in some way.

As of right now, stablecoins are pegged to other currencies in two main ways.

The first and most common way stablecoins are pegged is through off-chain collateralization.

For example, a stablecoin pegged to USD could be backed by the same amount of USD in a bank account.

So, for every stablecoin in circulation, there is $1 somewhere to give that token value.

This method is often regarded as the safest way to peg stablecoins.

The other way to peg stablecoins has gotten lots of attention in recent weeks after the failure of UST.

Stablecoins could provide a wealth of use cases in the future.

Stablecoins have become increasingly popular as they provide a steady price, which contrasts with the extremely volatile crypto market.

USDT, released in 2014, was one of the first stablecoins.

USDT is the largest stablecoin, with a market cap of over $70 billion.

Tether uses reserves to keep the price of USDT stable and maintain its price of $1.

New cryptocurrency traders Cryptocurrency traders interested in major pairs Cryptocurrency traders interested in a simple platform Simple platform is easy to operate Comprehensive mobile app mirrors desktop functionality Coinbase Earn feature rewards you with crypto for learning about available coins Higher fees than competitors As Tether is the most popular stablecoin, it can be found on most crypto trading platforms .

BUSD currently ranks as the third largest stablecoin with a market cap of just over $18 billion.

Overall, BUSD and USDT are backed in similar ways.

This experience may cause more people to look towards a more secure stablecoin for future use.

BUSD is available for use on the Ethereum and Binance chains, which could be useful for those looking to trade other tokens on the Binance Smart Chain, as USDT cannot be used on that chain unless wrapped into B-USDT.

New cryptocurrency traders Cryptocurrency traders interested in major pairs Cryptocurrency traders interested in a simple platform Simple platform is easy to operate Comprehensive mobile app mirrors desktop functionality Coinbase Earn feature rewards you with crypto for learning about available coins Higher fees than competitors BUSD is another popular stablecoin that is available on multiple prominent exchanges.

The choice between USDT and BUSD ultimately comes down to your goals for holding the stablecoins.

If you are looking for a token that can be used on several exchanges and thousands of cryptocurrencies, then USDT may be the token for you.

Either way, both tokens are great options for those looking to explore the stablecoin space

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