USDC holders can use Bitcompare to find the most attractive yields currently on offer. That recent move now means either one dollar or asset-equivalent backs every USDC. Similar to concerns made about Tether, USDC was flagged last year for not backing each USDC with an asset or dollar equivalent.
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Keep reading to understand more about USDC, including how it works and the various use cases for the digital currency. And, of course, you can also use your USDC in the traditional sense to buy other cryptocurrencies. Meanwhile, USDC’s value has stayed relatively stable over its life, although there may be some short-term volatility during extreme market periods, Manoppo says.
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- USDC’s reserve assets are held in segregated accounts with regulated U.S. financial institutions.
- Meanwhile, USDC’s value has stayed relatively stable over its life, although there may be some short-term volatility during extreme market periods, Manoppo says.
- As a cryptocurrency, USD Coin (USDC) is generally considered risky as an investment.
Launched in 2018 by Centre, a consortium founded by Circle and Coinbase, USD Coin was created as a regulated stablecoin that runs on blockchain technology. Check out PennyWorks to earn high yields through low-risk digital asset lending. USDC was initially launched on Ethereum and has since expanded to 14 blockchains, including Tron and Algorand.
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But there are challenges to having an asset’s value defined only by people’s perceptions, as demonstrated by Bitcoin’s volatile nature. Created in 2018, USDC’s market capitalization has risen from around $200 million to more than $14 billion. While the price of USDC doesn’t fluctuate more than a percentage point in either direction, the number of USDC has increased significantly.
What Is USD Coin (USDC)?
Meanwhile, the value of USDC has remained almost completely flat year to date. The lowest trading price that USDC has fallen to within the last 52 weeks is https://cryptolisting.org/ $0.995, a slight dip below its dollar peg. USD Coin is the currently the second-largest stablecoin, with a current market capitalization of $73 billion.
USD Coin (USDC) is a stablecoin designed to keep a constant one-to-one value with the U.S. dollar. Stablecoins like USDC aren’t really seen as investments, instead offering liquidity for crypto traders looking to purchase other cryptocurrencies seamlessly on exchanges. The flip side of the investment narrative is that having a digital asset pegged to a fiat currency like the U.S. dollar doesn’t make a great investment for appreciation. Stablecoins are a type of cryptocurrency whose value is pegged to another asset, such as a fiat currency, a commodity or even another crypto coin. USD Coin aims to maintain a one-to-one peg with the U.S. dollar. For most cryptocurrency traders, it makes sense to use USDC instead of USD.
Trading and converting your USDC is much easier than onboarding actual U.S dollars into the cryptocurrency market. Since USDC operates on Ethereum, you can swap between USDC and any Ethereum-based token on decentralized exchanges like Uniswap or Sushiswap. If you use a DEX, beware of high gas fees –– due to high demand for network space, it may cost over $100 to transact on Ethereum. Today the most common use case for USDC is to hedge against volatility in the crypto market without leaving the crypto ecosystem. Stablecoins can also interact with decentralized finance (DeFi) programs and earn interest. Since USDC uses Ethereum’s network, the stablecoin can be used on decentralized exchanges (DEXes) like Uniswap, yearn.finance and SushiSwap – something fiat cannot do.
You need to check the deposit method of these exchanges, and if they allow you to use debit or credit cards, you can make the purchase. Jesse Powell, the founder of the US-based crypto exchange platform Kraken, created it to enable users to buy and sell at lower commissions. It is one of the trusted sources that offer spot trading, margin trading, futures, indices, and more.
You can store Bitcoin, Ethereum, USDC and several other assets on the wallet’s mobile app. It’s free to download, so the only cost to you will be transaction fees to send your crypto to your wallet on the blockchain. USDC was created by Centre Consortium, a joint venture between Coinbase and Circle – aimed at increasing mainstream adoption of fiat stablecoins.
The platform has become a trustworthy exchange platform and provides access to over 350 digital tokens. USD Coin (USDC) is a stablecoin, a cryptocurrency backed by U.S. dollars or dollar-denominated assets like U.S. USDC’s reserve assets are held in segregated accounts with regulated U.S. financial how do blue rhino vs amerigas tank prices compare institutions. The easiest way to buy USDC is through crypto exchange platforms. The number of exchange platforms where it is available include Binance, Kraken, Kucoin, Bitstamo, Coinbase Exchange, and more. You only need to create your account and pay, which is available for direct purchase.
Just because USDC might be perceived as a safer, more credible port to ride out the stablecoin storm than other coins, current economic conditions should be considered. If you want to use your USDC to purchase other crypto coins like Litecoin or Dogecoin, you can make that happen on KuCoin. USDC investors generally use their holdings to earn passive income.
It’s much easier to transfer to decentralized finance protocols, as it’s tokenized on the same blockchain as Ethereum. USD Coin (USDC) is a digital currency that is fully backed by U.S. dollar assets. USDC is a tokenized U.S. dollar, with the value of one USDC coin pegged as close to the value of one U.S. dollar as it can get. The value of USDC is designed to remain stable, making USDC a stablecoin.
The platform will require you to deposit funds to purchase the tokens. For example, USDC is available for direct purchase, so you can buy it using fiat currencies such as USD or EUR. After selecting your preferred exchange platform, you must register your account. For this purpose, you must provide essential credentials such as username, address, contact number, email address, etc. Purchasing USD Coin won’t generate any returns for investors, as it is intended to be a stablecoin.