2026-01-10 23:24:34

Recently, while engaging in contract trading, I suddenly thought of this question. When using USDC and USDT for contracts, besides the difference that order placement fees are free, are there any other fundamental differences in the underlying mechanisms?

For example, in terms of liquidity depth, price stability, liquidation mechanisms, or even contract funding rates, do the two have significant differences? Especially in leveraged trading scenarios, when using USDC and USDT as settlement currencies, will the trading experience and costs differ noticeably?

It seems that these details should be quite important for those who trade contracts long-term. I’d like to hear everyone’s practical experiences.

USDC-0,05%

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SelfSovereignSteve

· 8h ago

USDT liquidity is so deep there's no end, USDC is doing well but still a bit short, and you can also see this in the funding rates. Honestly, small things like order placement fees are not the main point; the key issue is slippage that can wipe you out. For long-term contracts, I still trust USDT more; the ecosystem is too mature. I haven't heard of any issues with USDC liquidation, but USDT occasionally has risk spillovers. The experience really isn't much different; maybe it's just psychological? The choice still depends on how your exchange prices.

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HashRateHermit

· 17h ago

To be honest, USDT liquidity still outperforms USDC by a lot. This is an objective fact, right? USDT depth is indeed deep, and you can feel it when trading contracts. Actually, it's not that complicated. The funding rate mainly depends on the trading pair itself, not the currency. USDC only waives order placement fees on certain exchanges; not all platforms offer this benefit. In practical trading, USDT is still more advantageous; the ecosystem completeness is different. The liquidation mechanisms are basically the same; it's mainly an issue with the exchange systems.

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MetaMaskVictim

· 01-10 23:47

Honestly, these small differences don't really affect my returns. It mainly depends on my own trading strategies. USDT liquidity is indeed deeper than USDC, but retail investors don't perceive this difference. Funding rates are basically similar; the key is still the mechanism setup of the exchange itself. I always use USDT here and have gotten used to it; there's no need to fuss. The real details lie in the stop-loss points and leverage multiples—don't get distracted by these minor issues.

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ForkThisDAO

· 01-10 23:46

Liquidity-wise, USDT still dominates, while USDC is expanding but with less depth. USDT funding rates are generally lower, which is crucial for frequent traders. Honestly, after trading derivatives for so long, the experience with USDC isn't as smooth as expected... unless the exchange subsidizes. The liquidation mechanisms are essentially the same, but USDT trading pairs offer more price discovery and are faster. The key depends on how the exchange itself is designed, not the currency. Spot trading doesn't matter much; for derivatives, I still prefer USDT—its stability is truly different. The biggest issue with USDC is insufficient liquidity; large inflows and outflows can cause slippage... really. The difference in funding rates is quite significant; USDT often costs 0.01 points less, saving a lot over long-term positions.

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BearMarketBuyer

· 01-10 23:43

USDT liquidity is still very deep, USDC is almost there on some trading pairs, the funding rates are basically the same, but the key factor is still the depth of the trading pairs themselves. Honestly, the biggest difference for me is that order placement fees are free, which saves me a lot over a month. I've used both; USDT seems to settle faster? USDC sometimes stalls, but maybe it's just my perception. For leveraged trading, price stability is definitely better with USDT; USDC is a bit more volatile, especially during extreme market conditions. Ultimately, USDT remains the main choice; I only consider USDC to save that small fee when placing orders.

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LostBetweenChains

· 01-10 23:34

Honestly, USDT still has much deeper liquidity. Although USDC is more compliant in the US, its trading volume is significantly lower, and the funding rates for USDT are usually cheaper. Bro, I suggest you stick with USDT unless you really care about that order fee. Wait, which exchange are you talking about that offers free order placement? I haven't heard of it. After doing futures for so long, I feel the differences aren't as big as imagined. It mainly depends on the exchange's liquidation mechanism and depth. USDC is indeed more stable than USDT, but in terms of cost, USDT wins. Are you planning to hold long-term or short-term? That will determine which one to choose. The difference in liquidity depth between these two is quite noticeable; USDC often lacks sufficient liquidity.

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RugpullAlertOfficer

· 01-10 23:30

To be honest, USDT liquidity still surpasses USDC, and the funding rates are usually a bit cheaper. There is definitely a difference, with trading volume differing by an order of magnitude. USDT's depth is indeed deep, but USDC is catching up now. Don't overthink it—just use the mainstream ones. This question is quite detailed, but the choice of exchange has a bigger impact than the coin itself. USDT carries higher risk but has explosive liquidity; USDC is more stable but sometimes the quotes can fluctuate. It depends on your risk preference. Basically, USDT has higher market acceptance, but USDC can also compete now. Don't get brainwashed by marketing.

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BuyTheTop

· 01-10 23:27

To be honest, USDT liquidity completely outperforms USDC, and the funding rates are often lower as well. It's a painful lesson. Although USDC sounds safer, its trading depth is significantly worse, especially during large liquidations, where you can really feel the difference. However, recently USDC has started to catch up on some exchanges. Let's look at different exchanges—there's no absolute answer. The funding rate is the real key; don't be fooled by order book fees... Actually, looking at the development direction of the crypto space, USDC will eventually share the market equally, but for now, USDT is still more attractive.

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