Only the small 2.5" laptop size drives run off USB only the 3.5" drives need the external power due to the power requirements are greater than USB can provide. The smaller drives are more portable due to their size. They both function the same they are external hard drives. If the ext power supply dies then the drive is down until a replacement is bought.
USB 2.0 ports are current limited to 500mA. Sometimes a USB powered drive will not spin up unless you use a Y-cable to pick up power from two USB ports.
Many people also report physical connection problems with micro-USB connectors.
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