USDT ERC20 Vs TRC20: Which To Choose?

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When choosing between USDT ERC20 and TRC20 for transactions, the key difference lies in transaction speed and fees:

TRC20, operating on the Tron network, offers faster transactions and significantly lower fees, making it ideal for frequent or small transfers.
ERC20 on Ethereum provides stronger security and wider compatibility with decentralized finance (DeFi) platforms, which makes it a better option for large-scale transactions or long-term investments.

USDT (Tether) is a stablecoin pegged to the US dollar, providing stability and protection from the volatility of the cryptocurrency markets. It is widely used as a means of storing value and conducting transactions between cryptocurrencies. The two main standards for USDT transfers, ERC20 on the Ethereum blockchain and TRC20 on the Tron blockchain, provide users with different options. Choosing between them is important, as ERC20 offers a high degree of security and decentralization, but comes with high fees, while TRC20 provides lower fees and fast transaction processing. Choosing the right network can significantly reduce costs and speed up the transfer of funds.

USDT ERC20 vs TRC20: comparison

The choice between ERC20 and TRC20 depends on your priorities. If speed and low fees are important, TRC20 will be the better choice, while ERC20 is more suitable for those who need security and compatibility with DeFi applications.

USDT ERC20 vs TRC20: comparison
Parameter	ERC20 (Ethereum)	TRC20 (Tron)
Advantages	Popularity, security, decentralization	Low fees, high speed
Disadvantages	High fees, slow processing	Limited compatibility with Ethereum dApps
Address	Starts with "0x"	Starts with "T"
Transaction speed	15 transactions per second	Up to 2000 transactions per second
Transaction fees	Up to 30-35 USDT	About 1-2 USDT
Compatibility	Wide support for wallets and exchanges	A more limited but growing ecosystem

Detailed comparison of ERC20 vs TRC20

Transaction speed:

ERC20 on Ethereum processes around 15 transactions per second. This often results in lags, especially when the network is heavily loaded.
TRC20 on the Tron blockchain is significantly faster, processing up to 2,000 transactions per second. This makes it a great choice for quickly transferring funds.

Transaction fees:

ERC20 is known for its high fees, which can reach 30-35 USDT per transaction, especially during periods of network congestion.
TRC20 offers much lower fees, often around 1-2 USDT, making it a more cost-effective choice for frequent transactions.

Security:

ERC20 wins in terms of security due to the high degree of decentralization of the Ethereum network and its widespread use in decentralized applications (dApps).
TRC20 also offers security, but has a lower degree of decentralization compared to Ethereum.

Compatibility and ecosystem:

ERC20 is supported by most major crypto exchanges and wallets, making it a preferred choice for long-term storage and DeFi services.
TRC20 has limited compatibility, but its ecosystem is growing rapidly, especially in areas that require fast transactions, such as social media and online gaming.

How to choose the right standard for USDT transfers?

When choosing between TRC20 and ERC20 for USDT transfers, there are several factors to consider, such as fees, transaction speed, and intended use. Let's take a look at when each standard is preferable.

When is it better to choose TRC20?

TRC20, which runs on the Tron blockchain, is a great choice when low fees and fast transaction processing speeds are a priority. Transactions on TRC20 are typically processed in seconds or minutes, and fees are only around 1-2 USDT. This makes TRC20 especially attractive to users who frequently transfer small amounts or need to move assets quickly. This option can be beneficial for traders active in cryptocurrency markets, where transaction speed and cost are important.

When is it better to use ERC20?

ERC20, which runs on the Ethereum blockchain, is better suited for those who value security, decentralization, and compatibility with dApps and DeFi services. Ethereum network fees can reach 30-35 USDT per transaction, making it less cost-effective, especially when the network is heavily loaded. However, in exchange for this, users get access to a wider range of decentralized applications, smart contracts, and DeFi financial products. This makes ERC20 a great option for long-term investors and businesses that value network sustainability and participation in the decentralized economy.

Let's consider a few specific cases:

For businesses that deal with large transfers or interact with global financial networks, ERC20 may be more convenient due to its integration with DeFi and support on most major exchanges.
For traders looking to reduce transaction costs and speed up transactions, TRC20 provides obvious advantages due to speed and low fees.
For long-term cryptocurrency investments, ERC20 is better suited due to its maturity, sustainability, and security. Its wide support among crypto services guarantees long-term liquidity and reliability.

Crypto exchanges that use TRC20 and ERC20 standards

USDT international transfers via the TRC20 and ERC20 standards are supported by many popular cryptocurrency exchanges and wallets. Both standards are widely used for both trading and transactions, but differ in terms of speed and cost of transactions.

Popular exchanges that use the TRC20 and ERC20 standards for transfers:

Best crypto exchanges
	Coins Supported	Min. Deposit, $	P2P Taker Fee, %	P2P Maker Fee, %	Open an account
OKX	329	10	0	0	Open an account Your capital is at risk.
Kraken	278	10	Not supported	Not supported	Open an account Your capital is at risk.
Crypto.com	250	1	0,16 - 0,20	0,10 - 0,16	Open an account Your capital is at risk.
CoinMetro	72	1	0,2	0,1	Open an account Your capital is at risk.
Ledger Wallet	1817				Open an account Your capital is at risk.

Wallets that support TRC20/ERC20

Trust Wallet, a mobile wallet integrated with Binance, supports both standards and allows you to securely store both TRC20 and ERC20 tokens. Trust Wallet is convenient for managing assets and conducting transactions on the go, making it popular among active users.
Ledger Nano S and Ledger Nano X are popular hardware wallets that support both TRC20 and ERC20. These devices provide a high level of security by storing private keys offline, which is important for long-term investors.

Consider the potential future development of the blockchains themselves

Choosing between ERC20 and TRC20 for USDT transfer does matter. But another aspect that is often overlooked is the potential future development of the blockchains themselves. Ethereum is actively moving to Proof-of-Stake (PoS), which may lead to lower fees and faster transactions in the future. If you are planning a long-term investment and participation in the Ethereum ecosystem, it is worth considering this trend and the possibility of future improvements to the network infrastructure.

For those considering TRC20, it is important to remember that despite its speed and cost advantages, Tron is currently focused on entertainment and gaming projects. This means that if your interests include interacting with dApps or participating in DeFi-based projects, Tron may be limited in supporting complex financial products, as is already evident in comparison to Ethereum.

Before choosing a network for transfer, check the liquidity of USDT on specific exchanges. On some platforms there may be differences in liquidity between the ERC20 and TRC20 versions of USDT, which may impact the speed of conversions and the availability of assets for trading.

Conclusion

When choosing between ERC20 and TRC20 for USDT transfers, the key factors are transaction speed and cost. TRC20 offers faster and cheaper transfers, making it ideal for frequent and small transactions. On the other hand, ERC20 provides greater security and compatibility with DeFi services, which is preferable for long-term investors and large transfers. Each network has its own advantages, so the choice should be based on the specific needs of the user. Evaluate what is more important - saving on fees or access to more complex financial instruments.

FAQs

What happens if I send USDT TRC20 to an ERC20 address and vice versa?

Sending USDT TRC20 to an ERC20 address or vice versa will result in a loss of funds, as the Ethereum and Tron networks use different protocols and addresses. It is important to always check the network supported by the platform or wallet before sending USDT to avoid irreversible errors.

How does the network affect USDT liquidity for traders?

USDT liquidity can vary depending on the network. For example, TRC20 may have higher liquidity on platforms where users actively use Tron for fast and cheap transactions. At the same time, ERC20 is more common on DeFi platforms, which can increase liquidity for those working with these services.

What are the risks associated with using non-standard networks to transfer USDT?

Using non-standard networks not supported by the platform or wallet may result in delays or loss of funds. It is always important to make sure that the platform or wallet supports the network you choose, whether it is ERC20 or TRC20, before sending a transaction.

Which network is better to use for large transfers?

For large transfers, the ERC20 network is preferable, as it provides a higher degree of security and decentralization. Although the fees are higher, this is offset by reliability and compatibility with financial services, which is important for large-scale transactions.

Team that worked on the article

Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006. He has expertise in finance and investment, and his field of interest covers all aspects of geoeconomics. Maxim provides up-to-date information on trading, cryptocurrencies and other financial instruments. He regularly updates his knowledge to keep abreast of the latest innovations and trends in the market.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Ethereum

Ethereum is a decentralized blockchain platform and cryptocurrency that was proposed by Vitalik Buterin in late 2013 and development began in early 2014. It was designed as a versatile platform for creating decentralized applications (DApps) and smart contracts.

Bitcoin

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Volatility

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Leverage

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