Two stablecoins can track the exact same US dollar price and function in completely different ways.

Here we explain the difference between USDT and USDC in terms of issuer, transparency, networks, and liquidity, and which one is better depending on whether you are going to get paid from abroad, trade, or keep your long-term savings.

Download the belo app and check which stablecoins you can use according to your account and current conditions.

Who is behind each stablecoin

Two stablecoins can track the exact same US dollar price and function in completely different ways. 

The difference between USDT and USDC starts before any transaction, in the structure of the company that issues them and how it documents what backs each token in circulation.

USDT was launched in 2014 by Tether, a company headquartered in the British Virgin Islands that today manages the stablecoin with the highest market capitalization.

Tether publishes quarterly reports on the composition of its reserves, although historically it has raised questions about the frequency and scope of those publications.

 USDC was created in 2018 by Circle, a US company regulated as a money transmitter in several states.  Circle publishes monthly attestations audited by Deloitte, which gives it a more frequent verification cadence and a more visible regulatory framework.

That difference in transparency does not mean that one is safe and the other is not. Each appeals to a different user profile. 

Those who prioritize public documentation and regulatory proximity tend to lean toward USDC, while those looking for maximum liquidity and presence on the largest number of platforms trade with USDT, which has a daily trading volume several times higher than that of USDC.

Networks and liquidity of each stablecoin

What defines the day-to-day experience is which blockchain networks you can move each stablecoin on and what liquidity you have on the platform where you trade.

Both are available on Ethereum (ERC20), Tron (TRC20), Polygon, Arbitrum, and BNB Chain, among other networks. The practical difference lies in the weight that each one has within those ecosystems.

USDT dominates on Tron, where a huge portion of global stablecoin transfers are concentrated, with transaction fees that are usually below one dollar.

USDC has a stronger presence on Ethereum ecosystem networks like Arbitrum and Base, the latter developed by Coinbase, which co-founded the Centre consortium along with Circle.

For those who trade between platforms frequently, that distribution matters because it determines the costs of each movement and the credit speed.

Liquidity also varies depending on the exchange or wallet you use. USDT is listed on practically every platform in the world, with trading pairs against almost any crypto asset.

USDC has a high presence but with less market depth on some smaller or regional exchanges. 

If you are going to trade large amounts, it is advisable to check the volume of the specific pair where you want to execute, because a pair with low liquidity can generate price slippage even in a stablecoin.

Presence of each stablecoin according to network and usage profile

USDT or USDC depending on your use case

The question of which is better, USDT or USDC, does not have a single answer because it depends on what you need it for. What does exist is a clear logic for choosing in each scenario.

To collect payments from abroad as a freelancer, USDC usually works well when the payment platform already operates with that stablecoin.

Services like Payoneer or Airtm allow moving funds to wallets where they enter directly as USDC, which simplifies the conversion chain.

In belo, funds coming from those platforms enter as USDC and can be converted or used from the app according to what each user needs, whether it is transferring to more than 50 countries or paying with card. 

For remittances between people in Latin America, USDT on Tron is usually the cheapest and fastest option because the network has minimal fees and very high compatibility with wallets in the region.

In trading, USDT has a clear advantage in terms of volume. Most crypto asset pairs on major exchanges trade against USDT, making it easier to enter and exit positions with less slippage.

USDC is gaining ground on decentralized finance (DeFi) platforms where issuer transparency reduces a type of risk that protocols value.

For long-term custody, where you are going to maintain a dollarized balance without moving it frequently, the differences between stablecoins become more relevant. 

Circle's regulatory structure and the frequency of its attestations make USDC preferred by users who assess issuer risk over the longer term. 

USDT, with its higher capitalization, offers the advantage of being able to liquidate quickly if you need to exit, although questions about the exact composition of Tether's reserves persist as a factor to consider.

When to use each stablecoin according to the scenario

• To get paid from abroad as a freelancer, USDC simplifies the conversion chain when the payment platform already operates with that stablecoin.

• For remittances in Latin America, USDT on Tron is the cheapest and fastest option due to its minimal fees and high regional compatibility.

• For active trading, USDT offers higher volume and lower slippage because most pairs on major exchanges trade against it.

• To trade on DeFi platforms, USDC is preferred because issuer transparency reduces risks that decentralized protocols value.

• For long-term custody, USDC appeals to those who prioritize Circle's regulatory structure and the monthly cadence of its attestations.

Three verifications before operating

Choosing between USDT or USDC is just the first decision. There are three verifications that avoid costly mistakes before sending or receiving funds, regardless of which one you have chosen.

1. Confirm that the sending network and the receiving network are the same. Sending USDT via Tron to an address that only accepts Ethereum can result in the total loss of those funds, and recovering them depends on whether the receiving platform has the technical capacity to do so, which often does not happen.

2. Check the liquidity of the pair on the platform where you are going to trade, especially if you need to convert to local currency or another asset. An exchange may list USDC but have such low volume on the USDC/local currency pair that the conversion costs you more than expected.

3. Evaluate the counterparty. This applies to exchanges, custodial wallets, and transactions between people. Who holds your funds, what security policies they have, and what happens if the platform stops operating are questions that should be answered before depositing, not after.

If it is your first transaction, doing a test send with a low amount allows you to validate that everything works without risking a significant sum. That extra five-minute step can save you a problem that otherwise takes weeks to resolve.

Download the belo app and check the current conditions according to your account.

Frequently asked questions about differences between USDT and USDC and when it is best to use each one

Do USDT and USDC have the same US dollar backing?

Both claim to be backed 1-to-1 by the US dollar, but they differ in how they prove it. Circle publishes monthly attestations audited by Deloitte, while Tether publishes quarterly reports that historically generated more questions about their exact composition.

That does not automatically imply that one is safer than the other. It means that the level of publicly available verification is different, and that may carry more or less weight depending on the profile of the person trading.

Can I lose funds if I send USDT on the wrong network?

Yes. Sending USDT via Tron to a wallet that only operates on Ethereum can result in total loss of funds. Recovering them depends on the technical capacity of the receiving platform, and that option is often not available.

Before any transfer, it is advisable to confirm the network with the platform or person who is going to receive. A minute of verification can avoid an error that has no easy solution.

Which one is better if I am just starting out with stablecoins?

It depends on the platform you use. If you trade on a major exchange with liquid pairs, USDT is usually available in more places. If your priority is to receive payments from abroad or use DeFi platforms, USDC may be more convenient due to its regulatory framework and integration with international payment services.

One way to start is to choose the stablecoin already accepted by the platform where you have an account, trade with small amounts at first, and adjust as you gain experience.

What is price slippage and why does it affect stablecoins?

Slippage occurs when the price at which you execute a trade differs from the price you expected, because the available liquidity in that pair is not enough to absorb your order without moving the market. Although stablecoins maintain their peg to the dollar, a low-volume pair can generate slippage when converting to another currency or asset.

To avoid this, it is advisable to check the volume of the pair before executing, especially on small or regional exchanges where market depth may be low.

Is it possible to use USDT and USDC at the same time?

Yes, and many users do. A common strategy is to hold USDT for active trading due to its higher liquidity, and keep USDC for long-term custody or for payments from abroad, taking advantage of the specific benefits of each depending on the context.

There is no technical limit to operating with both in parallel. The decision depends on your goals and the platforms you use most frequently.