Discover the power of USDC (USD Coin), a stablecoin pegged to the US dollar. Seamlessly trade, transact, and store value with this reliable digital asset. Explore its benefits in decentralized finance (DeFi) and blockchain applications.
The stablecoin USD Coin (USDC) aims to maintain a stable one-to-one value with the US dollar. They not primarily considered investments; rather, they provide liquidity to crypto-currency traders hoping to easily buy other crypto-currencies on the exchanges. In this article, we will discover all what you need to know about trading US Coin.
Built on the Ethereum (ETH) network, the USD Coin is a stablecoin. The value of the USD Coin is pegged to the dollar, just like other guaranteed stablecoins. Thus, ideally, one USDC should always equal one USD.
The USDC is one of the largest initiatives among the more than 19,000 crypto-currencies. In fact, it deserves special mention for being the second largest stablecoin behind Tether, with over $51 billion in circulation to date. It ranks fourth among all crypto-currencies in terms of market capitalization.
2018 saw the release of the USD coin by Centre, a group that Circle and Coinbase created. Its goal in development was to be a regulated stablecoin that "operates within the U.S. money transfer rules and regulations" and makes use of blockchain technology.
Like Tether, USDC has been criticized for not backing every USDC with an asset or dollar equivalent in the last year. In response to these findings, the Center said in August 2021 that it would change the composition of the USDC's reserve and that the assets backing the currency would only be held in cash and short-term U.S. Treasury securities.
There are various crypto-currency exchanges that allow you to buy USDC. Here are a few places where you can convert US money into USDC:
Because USDC is a stablecoin, it is not really "matched" with other crypto pairs. Many exchanges, however, allow you to buy other crypto-currencies like Bitcoin (BTC) and Ethereum (ETH) with USD Coin.
It only takes a few simple steps to get started if you're ready to buy USD Coin and accept the dangers of crypto-currency investing:
More than 600 businesses accept USD Coin as payment, according to Cryptwerk. There are several ways you can use your USDC with these different businesses, including:
The recent volatility in stablecoin prices has spilled over into the crypto-currency market. The collapse of the stablecoin TerraUSD in May, which cost UST and LUNA owners $42 billion, caused difficulties in the crypto-currency market, but the USDC was still able to maintain its $1 peg.
While the USDC is a currency with some advantages, crypto-currency traders should not consider it as an investment.
Axel Nussbaumer, vice president of digital asset management at Blockmetrix, a Dallas-based crypto-currency mining company, says USDC is not inherently an investment vehicle. But it serves its purpose very well, which is to allow traders to take risks, stay away from volatility and make quick and cheap trades.
Current economic situations must be taken into account, although the USDC can be considered a safer and more reliable port than other currencies to weather the stablecoin storm.