I wanted to do a transaction on binance, i buy carlty coins with usdt, I try several times the transactions keep showing unsuccessful, only to figure out that the address must be pep20 binance smartchain. Why is this PEP20 preferred wallet address to others?
There are no major and fundamental differences between the centralized Binance exchange and the binance smartchain, as they are both centralized and some people can stop the network or reverse transactions as there are 21 validators with Proof of Staked Authority (PoSA).
Withdrawing from the wallet or keeping it on the platform is one, and perhaps withdrawing from the wallet is worse because you will bear responsibility for your money while they can freeze or reverse it without your permission.
After withdrawing for Bep-20 addresses, which is the cheapest in transactions, you can then transfer it to any other blockchain by bridges.