Short bio: Computer Scientist, FOSS supporter (read more)
Tux Machines (TM)-specific
Live USB is a good way of testing out Linux distro without making changes to your computer. Unknown to many, there is a data persistency mode in the Live session where you can make changes and save files to your USB drive and the data will persist even after shutting down the live session. After testing out the live session, you can also install the distro to your USB drive instead of the internal hard drive. Both methods allow you to boot Linux from a USB drive and save data to it. So what are the differences between the two and which one should you use?
Live Session with Data Persistency
When you create a Live USB, presumably using the Startup Disk Creator tool, there is an option for you to choose how much space you want to reserve for storing of data.