USDT vs. USDC vs. BUSD: How Are They Different?

Stablecoins are cryptocurrencies whose values are pegged to a stable asset, mostly fiat currencies. Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) are the three most popular stablecoins, with a combined market cap of $120 billion. However, with the recent buzz around BUSD, there’s no doubt that most investors would be curious to know if BUSD is still worth investing in — or if you should simply pile your investments into USDT, USDC or other stablecoins instead. 

While stablecoins are known to allow faster, lower-cost and safer transactions without the limitations associated with traditional banking, such as location-based restrictions and lack of financial services during holidays, investors nowadays are uncertain following the May 2022 collapse of TerraUSD (UST).

Despite this, the global cryptocurrency market is forecasted to rise to above $1.9 billion by 2028, proving the popularity of cryptocurrencies worldwide.

Stablecoin is a type of cryptocurrency that’s more reliable and less volatile than its high-profile counterparts like Ethereum and Bitcoin, which means there’s more significant potential for safer investments. 

But which stablecoin should you trade? How do stablecoins compare to fiat currencies? Below, you’ll learn everything about the three main stablecoin supplies and how they differ from each other.