When buying or exchanging USDT (Tether), you'll notice that there are more than one network, such as ERC20 and TRC20. But what's the difference between them? And which network is best for exchanging?
USDT, or Tether, is a stablecoin pegged 1:1 to the US dollar, meaning that 1 USDT is worth approximately 1 US dollar. However, the same coin can operate on different blockchain networks, and each network has different fees and features.
The ERC20 network runs on the Ethereum system. It's the oldest and most secure, but it suffers from high transfer fees and slower speeds, ranging from $2 to $20 depending on network congestion. However, it boasts widespread global support and widespread adoption by wallets and platforms.
The TRC20 network runs on the TRON system and is known for its high speed and very low fees, typically less than $1. Therefore, most users prefer it for daily trading and quick transfers, especially when purchasing from stores or sending small amounts.
In short, if you want high security and are dealing with Ethereum-based wallets or platforms, choose ERC20. If you're looking for speed and low fees, the TRC20 network is the best option for you.
Always remember before transferring to ensure that the wallet address you're sending to supports the same network (ERC20 or TRC20), as sending the currency to a different network results in the loss of the amount!