What is the difference between USDT on Coinbase and USDT as an ERC20 token?

3 answers

• Mar 30, 2022 · 3 years ago
  USDT on Coinbase is a centralized version of the USDT stablecoin, while USDT as an ERC20 token is a decentralized version. Coinbase holds the USDT funds on behalf of its users, providing them with a convenient way to trade and store USDT. On the other hand, USDT as an ERC20 token is built on the Ethereum blockchain, allowing users to have full control over their funds and enabling them to interact with various decentralized applications. While both versions aim to maintain a 1:1 peg to the US dollar, the underlying technology and custody model differ.
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• Mar 30, 2022 · 3 years ago
  USDT on Coinbase is like having your money in a bank, where Coinbase acts as the custodian and manages the funds on your behalf. USDT as an ERC20 token, on the other hand, is more like having cash in your wallet, where you have complete control over your funds. With USDT as an ERC20 token, you can send, receive, and store your USDT in any Ethereum wallet that supports ERC20 tokens. This gives you the flexibility to use your USDT in various decentralized finance (DeFi) applications.
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• Mar 30, 2022 · 3 years ago
  USDT on Coinbase is a popular choice for users who prefer a centralized and regulated platform for trading and storing USDT. Coinbase has a strong reputation and provides a user-friendly interface, making it easy for beginners to get started. On the other hand, USDT as an ERC20 token appeals to users who value decentralization and want to have full control over their funds. By using USDT as an ERC20 token, users can take advantage of the Ethereum ecosystem and access a wide range of decentralized applications and services.
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