Digital transactions are becoming more advanced with the mainstream adaptation of cryptocurrency. However, one of the main concerns of earning a digital asset is its volatile price. That’s where stablecoins like USD Coin cryptocurrency come into play for people to have an alternative coin to invest in or use in daily transactions.
Get to know how this cryptocurrency works and what you can do with it once you’ve invested in it when you browse through BTC Post.
USD Coin cryptocurrency basics
For investors who aren’t too keen on investing in volatile digital currencies, stablecoins like the USD Coin (USDC) is a good way to tread the waters in crypto transactions. This coin is pegged on the US$ which means that a US$1 is equivalent to 1 USDC.
How USDC works
USDC is part of a cryptocurrency class that attempts to provide investors with a digital asset that’s stable in price. It is also backed by a reserve asset which means that some banks use the currency for transactions and payment purposes.
This type of cryptocurrency offers the best of both worlds. You can easily transfer the US$ on your bank accounts and turn it into a USDC. This gives you the ability to send, receive and trade the asset quickly just like any other crypto coins in the market such as Bitcoin (BTC), Ether (ETH) and Cardano (ADA) among others.
USDC was developed in 2018 by American entrepreneurs Jeremy Allaire and Sean Neville. With the help of crypto Coinbase’s partnership with crypto platform Circle, the Centre consortium was developed to create USDC assets.
Centre consortium created the blockchain technology and governing framework for the digital asset while Circle and Coinbase were the first commercial issuers of USDC. It’s also an ERC-20 token making it easier for Ethereum wallet holders to transact using the asset.
Additionally, with Circle being a money transmitter service provider, USDC coins are regulated and verifiable given that one of the companies that back the asset is an open financial book.
Benefits of owning USD Coin cryptocurrency
Given its stability, USDC is a good option for crypto beginners to learn and understand how the market works. It gives you a less risky option to try your hands at crypto trading and transacting. However, the asset’s benefits extend outside its stable value.
Below are the various benefits of owning a USDC asset:
Easily transferable through peer-to-peer (P2P) transactions
As stated above, USDC runs on the Ethereum network. This gives users the ability to trade the asset whenever they need it in a matter of seconds. Whether the amount you are transferring is large or small, you can rest easy knowing that the receiver will get it immediately as long as they have a wallet that’s compatible with Ethereum.
Moreover, money transfers are easier and significantly cheaper, especially for overseas transactions. You don’t have to worry about overhead charges and red tape processes when sending money abroad since USDC gives you a seamless transfer of assets.
All you have to pay for is the Ethereum gas fee which won’t cost you as much as transferring money through banks and third-party service providers.
Compatible with dApps
The crypto sphere is developing a lot of exciting innovations to make the experience better for users and investors. With the improvements in blockchain technology, some ledgers offer dApps powered services like blockchain-based gaming and non-fungible tokens (NFT).
What gives USDC an edge over other cryptocurrencies is its compatibility with dApps, especially Ethereum powered networks. This ERC-20 coin can be used to buy different crypto items without experiencing transaction hassles.
Security of the coin compared to fiat currency
The security of USDC assets also utilises the best of both crypto coins as well as traditional fiat currencies. Storing this digital asset in your crypto wallet is fundamentally more secure than putting money in the bank. This is because its blockchain as well as your crypto wallet have sophisticated encryption in place to avoid the assets being stolen by hackers.
Traditional payment services provided by banks and third-party companies are secured but once hackers get into your log-in details, your account can easily be accessed.
On the other hand, storing your USDC assets in a private wallet gives you additional layers of security. The only way anyone can access your wallet is through a private key which only you can know.
Backed by reputable companies
Aside from its stability as an asset, the coin is backed by reputable companies regulated by US financial institutions. The issuers of this digital asset including Circle and Coinbase regularly report to USD reserve holdings to regulate the transactions.
Moreover, these transactions are audited by an independent accounting firm Grant Thornton to ensure that the exchanges follow certain standards for transparency and anti-money laundering purposes.
How to get USD Coins
USD Coin cryptocurrency is accessible in the crypto sphere. You only need to find a reputable exchange, wallet, platform or reserve bank partner where you can purchase the assets securely.
Below are the ways on how you can effortlessly purchase your USDC coins:
Aside from Coinbase, there are different crypto exchanges where you can purchase and trade USDC. These platforms below are one of the secure ways of buying and selling the asset:
If you want a more secure way to store your USDC assets, you can make use of private wallets with sophisticated encryption. Any wallets that are compatible with ERC-20 tokens can support this cryptocurrency including:
- Coinbase Wallet
- CoolWallet S
Platforms supporting USDC
The USDC asset is also a good currency to use to pay for goods and services. Since it is pegged to US$, it’s not hard to keep track of how much money you spend on certain items. Below is the list of platforms that support USDC payments:
- Coinbase Commerce
- Coin Rabbit
- Dispatch Labs
- Kyber Network
Reserve bank partners
To ensure that your transactions are secure, service providers and compliance organisations ensure that the crypto asset undergoes checks and balances. This is important to know before you start purchasing and trading USDC so you make informed decisions.
These partners include the following:
- Seba Bank
- MVIS CryptoCompare.
Bitcoin (BTC) $ 26,219.00 0.43%
Ethereum (ETH) $ 1,590.39 0.06%
Tether (USDT) $ 0.999542 0.04%
BNB (BNB) $ 212.11 0.4%
XRP (XRP) $ 0.501491 0.75%
USDC (USDC) $ 0.999860 0.01%
Lido Staked Ether (STETH) $ 1,590.62 0%
Cardano (ADA) $ 0.244660 0.84%
Dogecoin (DOGE) $ 0.060636 0.64%
Solana (SOL) $ 18.99 2.49%
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