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11.6 min read

USDC vs USDT - comparing stablecoins and choosing the best ▲ Get to know how to convert USDC to USDT and vice versa

Showing the main difference between USDC and USDT. such as gas fees, market cap, and transparency of Cirecle's and Tether's reserves backing approaches

USDT vs USDC differences and opposition for the market dominance

Written by

Alex Crypto
Published on

April 5, 2023

If you are still trying to understand what are USDT and USDC and how to choose the best stable coins for your future investments, then this article is for you. And to start with, it is important to say that USDC and USDT are the two top stablecoins on the market today, and of course, they are also the largest. Functionally, these crypto stablecoins are quite similar, but still, there is not even one difference between USDT and USDC, so it's difficult to say that these two are the same. That's why for all the crypto-beginners it's highly recommended to read this article where these coins will be compared, to make the right decision based on that.

What are USDT and USDC?

What are USDT and USDC?

So before finding the most important difference between USDC and USDT let’s start with the short definition of these two stable cryptocurrencies. The first one - is a digital coin with backing from cash and U.S. government bonds (mostly short-term). Due to the updated information, the Tether is also backed by cash, fiat currency and receivables from loans.

As you can see there is nothing too difficult to understand but still, to assess all the possible risks in crypto investing, you need to have at least a minimum knowledge of the two coins, and not just what is USDT and USDC. And below you will find all the essential information about these coins and the instruments for their conversion.

Is USDC the same as USDT?

As you know, USDC and USDT are two digital coins with similar functionality, as in both the principle of the model used assumes that each token in circulation will be backed by equivalent reserves. And one more similar thing is that both coins were designed to ensure a maximum value of $1 or as close as possible to that. But still, there can be easily found an important difference between USDT and USDC and you will learn about it below.

USDC vs USDT security

It is difficult to understand if is USDC safer than USDT, especially since about $3.3B is stuck with SVB. Before investors were sure that the USD Coin is one of the safest currencies on the crypto market mostly because it is the closest thing to a digital dollar and there is a Circle that can easily void any coin that's implicated in illicit activities.

But now it's important to learn more about the second coin in this pair to figure out USDT or USDC better. Especially since Tether refuses to give full details of how backed the coin.

USDC vs USDT reserve backing

To decide whether should i use USDC or USDT you need to check one more time about their reserves. In this pair, only the USD coin is backed by cash and loans, with the government bonds on another hand. Because of this and the fact that Tether still does not give information about how it is backed now, it is impossible to give the exact banking reserves.

Difference between USDT and USDC

Difference between USDT and USDC

To find the USDC USDT difference you will need to understand the core of each of them. Based on that knowledge you will know that they are issued by different companies - Tether and Circle, that is defines key features.

Then what's the difference between USDT and USDC NO.2? For sure that each of these coins is backed by different assets.

And one more important thing to say is that these digital coins are available on different blockchains.

USDC vs USDT market cap and volume

According to statistics, the market capitalization of Tether in 2022 was $86.3 billion. This gave it a significant lead and third place in the top 10 best-capitalized cryptocurrencies in the market. This crypto coin is second only to Bitcoin and Ethereum. Coins from Circle is also one of the top cryptocurrencies, but its level of market capitalization is much lower. And that is one more answer to the question: is USFC the same as USDT?

USDC vs USDT gas fees

Before learning more about the USDC vs USDT gas fees you need to understand what that means. So the gas fee is a term that refers to the transaction fee in the blockchain. Then what are the USDC vs USDT gas fees? Due to the rules of the USD coin, the fee is about 0.29 USDC, which is for sure one of the smallest. But in Tether there are no fees for operations on the Tether network! The only fee that the user will pay is 0.1% (for fiat currency).

Deciding whether USDT or USDC better

Deciding whether USDT or USDC better

Now based on the information about what is the difference between USDT and USDC for you, it will be much easier to make that decision. At the same time learn more about the USDT USDC safety and stability to choose the best stablecoin for your future investments.

Is USDC safer than USDT?

To understand which is more stable USDT or USDC you will need to analyze the statistics of each coin and its history. Based on the fact that the Tether has some really controversial history before March 2023 it was easy to say that the USDC is more stable. But with the last situation with the SVB and that it was traded over 1 dollar, it can be really difficult to choose USDC or USDT.

Which is more stable USDT or USDC?

You know about the USDC vs USDT gas fees and the safety of these coins, but still, there is a question about the stability of each stablecoin. And before it was so easy to say about the almost 100% stability of these coins. But this year it has changed, especially since the USD coin fell below 87 cents. Some slight frustrations also can be found in Tether statistics, but it also returned to a fixed price of $1 really fast. As you can see, to decide if should I use USDC or USDT there should be taken into account much more factors than just stability.

Is it cheaper to send USDT or USDC?

For those who want to get the maximum from their investments, the question is it cheaper to send USDT or USDC won't be that important. For sure there are no fees on non-fiat transactions in Tether, but the fee for the second one also will not be that big (about 0.29 USDC). That’s why you need to concentrate more on the information about the market cap because that is a more important parameter in your crypto investing journey.

Should I use USDC or USDT?

Information about the USDT vs USDC transfer fee, stability and safety of these coins will be a great base for the right decision about the attractiveness of currencies for investment. But before you also need to check if the selected stablecoin is supported on the needed network. It is equally important to define your investment objectives, as well as analyze the statistics of each stablecoin. And still, remember that you can always convert USDC to USDT and vice versa if you see that one of these stablecoins is today more interesting for investing.

How to convert USDC to USDT and vice versa?

So how to convert USDC to USDT and is there such an opportunity? Yes, you can easily convert USDT to USDC and vice versa on specialized websites. We will take a step-by-step example of how to convert USDC to USDT on Binance's “Convert & OTC Portal” as the fastest and easiest way.

  1. Once you logged in, go to the “Trade “ section and choose the “Convert” option.
  2. On the “Convert & OTC Portal” select the USDC to USDT converting pair. Enter the amount of the asset to swap and click “Preview conversion”.
  3. Here you can see the amount of USDT you will get with the count of the gas fee.
  4. If you have a sufficient USDC wallet balance, the “Refresh” button will switch to “Confirm” and you can approve the transaction. 


How to convert USDT to USDC step-by-stepAnd you don't really have to use Binance because there are many other great options. The procedure is quite the same on all converting services, so you will easily find out how to swap stablecoins. But before choosing the site read its terms and conditions. Remember that some additional transfer costs can be provided.


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