Stablecoins are an intricate tier of the decentralized cryptocurrency ecosystem. USD Coin in this regard is a stablecoin tied to the equivalent value of $1, hence making it easier to sell your crypto assets for digital currency.
What Is USD Coin (USDC)?
With different importance attributed to USDC, Visa has recently announced its decision of settling transactions in USD Coin on Ethereum’s blockchain. The cryptocurrency also has a healthy interaction with decentralized finance (DeFi) programs. This comes in compliment with the operation of stablecoin like USDC on decentralized apps (dApps).
Using the dApps, they enable investors to take out loans, settle insurance issues, and earn interest directly on the blockchain. Being in an equivalent tied to the dollar value aids in risk elimination characterized by the volatile nature of cryptocurrencies. This means there is a breeding ground for risk-tolerant investors.
Brief History Of USD Coin (USDC)
Created by Centre Consortium, which is a joint outlook between Coinbase and Circle, USDC is geared at increasing mainstream adoption of fiat stablecoins on the crypto space. The operation of USDC is surrounded by the minting of new coins when they are bought with the USD on exchanges like Coinbase.
However, Centre Consortium works in keeping the cash in its reserve, thereby the $1 of USDC can always be exchanged for $1. USDC was created in 2018 and its market strength can now boast of a market cap of about $42 billion. The price of USDC is subjected to any value dynamics but its number has significantly had growth over the years.
The coin is a U.S.-based coin that has third-party auditing. In the light of skepticism attached to the Tether (USDT), USD Coin appears to be more alternative to buying Tether.
How To Buy USD Coin (USDC)
1. Open An Account
One of the best ways to buy USD Coin is via Coinbase. But if you already have a Coinbase account, you can convert other cryptocurrencies into USD Coin.
Search for USD and select the buy option. You can easily send the tokens to any Ethereum wallet after your account has been credited with the USDC. On the other hand, you can create a Coinbase account if you have not gotten one.
2. Buy A Wallet (Optional)
It is not advisable to cryptocurrencies, including your USD Coin on an exchange. Often than not, centralized exchanges are the main target for hackers and scams due to the unlimited access of the exchanges to their investors’ funds. Sadly, most users have been victims of this ill-fated event, losing their cryptocurrencies.
This is why it is important and safe to have your crypto saved in a cryptocurrency wallet. These wallets generate a set of private and public keys that get your cryptocurrency encrypted for you.
3. Buy Your USD Coin
Before purchases can be made, your account will have to be funded. You can simply link your bank account to your Coinbase wallet, such that you have the of funding your account via debit card or ACH transfer.
There is no need to be weary of USDC price dropping below $0.99, so it is your volition to buy your USDC at your time and pace.
Using USDC is great as it is easier to transfer it to decentralized finance protocols on the same blockchain like Ethereum. USD Coin has potential opportunities that are not available in the traditional banking system. So USDC is currently going better than USD in all ramifications.