Tether vs USD Coin: Which Stablecoin to Use for Crypto Gambling?

Stability is not synonymous with cryptocurrencies. Their prices can often skyrocket or plummet to low points, leaving coin holders frustrated. Luckily, stablecoins provide the perfect balance between reaping the benefits of crypto gambling and avoiding volatility-related risks.

Tether and USD Coin stand out as the leading choices among stablecoins when it comes to crypto gambling. In a head-to-head analysis, Crypto Gamba examines the two, comparing their strengths and weaknesses to determine the best option for this form of entertainment.

Tether vs USD Coin Comparison

Due to their increasing popularity, stablecoins are slowly dethroning Bitcoin and other cryptocurrencies. However, to make an informed decision and choose the best option, we’ve compared all the key functionalities of both stablecoins that can impact your gambling experience. Below, we highlight our findings.

Availability in Crypto Casinos

Many online crypto casinos are adopting stablecoins as methods for deposits and withdrawals. Nowadays, players can find both USD₮ and USDC at leading crypto casinos such as Stake.com and BC.Game. However, Tether is generally more prevalent, with statistics indicating that approximately 80% of crypto casinos support it, whereas only 50% support USDC.

Therefore, when it comes to availability, USD₮ is a better option. It can be found in more casinos, thus giving you a greater selection of sites to choose from.

Security

Generally, both coins are highly secure and free of major security breaches. Circle and Coinbase are reputable companies that regulate and back USDC. They conduct monthly audits to demonstrate its 100% reserve backing. Tether, in contrast, has frequently faced scrutiny from crypto enthusiasts regarding its transparency. In recent years, it has enhanced its auditing process, yet it remains less transparent.

Because of the greater transparency on the reserve backing, USDC is a slightly more reliable choice.

Transaction Speed

When considering transaction speed, USD₮ and USDC are nearly identical. Both can function on the Ethereum blockchain as ERC-20 tokens and are accessible on other networks such as Solana and TRON. Transactions on the ERC-20 network take between 10 and 20 minutes during periods of high traffic and incur higher fees for expedited options. However, Tether also employs TRC-20 on TRON, where transactions are typically instantaneous.

Therefore, Tether wins in this category, especially when using the USDT-TRON or TRC-20.

Transaction Fees

All USD₮ and USDC transaction fees depend on the blockchain in use. During high congestion periods, gas fees for Ethereum-based transactions can soar to $50. USDC fees are comparable when utilised on the Ethereum network but can be reduced when used on alternative chains such as Solana and Algorand. However, TRON-based USD₮ transactions typically cost less than $0.10, making them one of the cheapest options for crypto gambling.

USD₮ represents the more cost-effective option. Therefore, players who make minimum deposits or intend to deposit and withdraw more frequently should consider using Tether.

Stability

Both stablecoins are technically pegged to the US dollar at a 1:1 ratio, which makes them highly stable and reliable. However, the mechanisms they use to maintain this balance differ. USDC employs a collateralised approach, using short-term US Treasury bonds and cash to ensure stability. Historically, fluctuations rarely exceed 0.1%.

USD₮, on the other hand, maintains its stability through a combination of cash, cash equivalents, and other assets such as corporate bonds. It has experienced some instances of de-pegging, and historical fluctuations have reached 0.5% of the $1 peg. However, its market dominance and liquidity swiftly restore stability.

In summary, USDC provides slightly greater stability due to its more conservative asset-backing approach. However, USD₮ is not far behind, as it boasts high liquidity and effectively maintains its peg.

Liquidity

Tether is the most liquid stablecoin in the world, commanding a market cap of over 65% of all stablecoins. Its daily trading volume often exceeds $40 billion. While USDC is widely accepted, it holds a considerably smaller market share of 22%.

For players who prioritise liquidity, Tether is obviously the better choice.

Final Verdict USDC vs USD₮

Both USDC and USD₮ are highly attractive and offer numerous benefits. Tether is often the preferred and superior choice for crypto enthusiasts due to its higher liquidity, lower fees, and wider representation in online casinos. However, Tether has also faced criticism regarding its transparency. Players who seek greater reliability and stability might favour USDC.

Ultimately, both stablecoins offer quick transactions and low fees for online gambling while ensuring a stable value. The choice cryptocurrency players face is whether they prefer the cost and time efficiency of Tether or the transparency and stability of USD Coin.