Typically, USB works on a host/client basis (also known as master/slave). This means the host device - let's say a PC - is in control of the peripherals (clients) connected to it. It has the drivers and the software to understand the peripherals and access their data.
That's why when you connect your Android device to your computer, it is detected as a 'mass storage device' in the same way a USB stick or portable hard drive would be. This also explains why you can't connect two peripheral devices together - one has to be a host.
USB On-The-Go is different. With a tiny wiring change in the cable, your Android device (which is usually a client) can act as a host, allowing you to attach a wide variety of peripherals directly to your Android and access them the same way a laptop or PC would!
This requires a special USB OTG cable or adapter, and an Android smartphone which is OTG compatible. While there is no physical difference you can see with an OTG cable or adapter, be sure to look out for a USB product which clearly states On-The-Go or OTG support if this function is required.
The following list of OTG compatible devices has been farmed from the internet, and may not be 100% accurate or complete. For the final word on whether or not your device is OTG compatible, check your product packaging or user manual for the USB OTG logo, or simply do a search online of your devices' model number and the keyword 'OTG'.
In theory, most devices which are HID compliant (Human Interface Device) should work great with Android and USB OTG, as well as any device which can work as a 'mass storage device' like Mp3 players and memory card readers. For more exotic peripherals like printers and scanners, the odds of them working are infinitesimally small because Android doesn't have the specialised drivers to communicate with them.
We have OTG adapters for USB 2.0, USB 3.0 and USB 3.1 Type-C devices:
USB OTG can be a bit tricky and varies from devices to device. If you have any questions or corrections, please contact us - the more info we have the better!