BUSD will cease to exist in the future. PAXOS will stop supporting BUSD and USDT has its own issue with redeeming USDT in fiat USD from the US bank. Just look at all the other stablecoins. When most of them even the largest one, USDC loses half of its marketcap USDT keeps rising. USDT is not a volatile asset so this is something unnatural and something to be concerned about.
ERC20 and TRC20 are both widely accepted in centralized exchanges, so i am not seeing any issue with either type. But ERC20 version has more liquidity than the TRC20 so if anything bad happens it will be easier to sell your ERC20 version I think.
Indeed, BUSD has been replaced by FDUSD on Binance as of December 15, the main platform that supported it. Paxos will continue to support it until February 2024, as the issuance of new BUSD has ceased. BUSD was among the best stablecoins in the market and will soon cease to exist. Most stablecoins may fail due to regulatory pressures and the failure to provide currency reports. USDT is currently considered the best option, and the TRC20 network is the best in terms of fee cost, as ERC20 fees are excessively high compared to other networks, and the Ethereum network is consistently congested. Therefore, diversifying the wallet with multiple supported stablecoins in a hardware wallet and on networks that offer cost-effective solutions and transaction speed is considered the ideal solution.