Which is Better: FDUSD vs USDT on Binance?
$USDT is one of the most popular stablecoins, launched by Tether Limited Inc. in 2014, and is widely recognized as being backed by U.S. dollar reserves. It’s the most commonly used stablecoin on Binance.
$FDUSD (First Digital USD), a newer stablecoin, made its debut on June 1, 2023, under the auspices of First Digital Labs, a financial firm headquartered in Hong Kong. It was introduced by Binance as an alternative to BUSD, which faced legal challenges with U.S. federal authorities.
Advantages of USDT:
USDT is widely accepted across all platforms.
USDT is used as a standard for P2P transactions, withdrawals, and transfers.
Advantages of FDUSD:
Zero Fees on #Binance: Many currencies on Binance offer zero fees when trading with FDUSD, as long as your order isn't executed at the spot price. Otherwise, fees will apply.
For example, if $ETH is priced at $2500 and your order is also at $2500, you will incur fees if your order isn't executed before others.
Profit Opportunities: Sell FDUSD when its value is higher than USDT. Sometimes, FDUSD may drop slightly to 0.999x. When FDUSD rises, you can sell it for USDT and continue this cycle.
Staking Rewards: Staking FDUSD can be profitable, as Binance often offers rewards when you hold FDUSD in the Launchpool.