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What is USD coin? Complete guide on USDC and benefits of the stable coin

What is USD coin?

USD coin is one of the cryptocurrencies referred to as stable coins, i.e., it is backed by the US dollar and relatively stable as opposed to other coins like Bitcoin. It is a project that was created by Coinbase and circle, the companies that support CENTRE which is an open-source tech project.

It is this project that is mandated to govern the USD coin alongside creating a connection between persons, merchants, currency and financial institutions across the globe. 

It is important to note that USD coin is the only stable coin that’s traded on Coinbase and it’s also an ERC-20 token. USDC was created on the Ethereum network because of the reputable status of Ethereum in the market, its smart contracts and the support it has from its developers.

Benefits of USDC

USD coin

•    Investors from all parts of the world can easily trade USDC on Coinbase prime and pro. The purchase can be made from Coinbase’s web-based application, Android and iOS app. After completion of the purchase, the USDC tokens are seen as available assets in the wallet used by the customer.

•    Investors wishing to buy USD coins using fiat currency such as the US dollars or using the Coinbase wallet can get a waiver on the transaction fees, but those that use debit and credit cards are subject to full fees charged for the transactions.

•    If an investor decides to purchase USD coin outside Coinbase, he/she can transfer the tokens to his/her wallet on Coinbase. It is advisable to countercheck the address you are sending to because Coinbase cannot recover any tokens sent to the wrong address.

•    USDC is listed in more than 36 exchanges including Binance which has made its adoption a success.

Use case of USDC

USDC can be used in various ways. Being a stable coin, a trader in Bitcoins or any other cryptocurrency can use USD coin to securely store his coins when he is not busy trading to avoid them from losing value should crypto prices drop.

Also, being an ERC-20 token, it is possible for two wallets to simultaneously send and receive any amount of USD coin anywhere across the globe both day and night at fast speeds. This facilitates easy and secure payments for e-commerce and other businesses, and since it’s a stablecoin, users can hold the tokens for future use without any worry of its value dropping.

Features of USD Coin

USD coin

I.    It has a stable value

The value of USDC is pegged to the US dollar making it stable. For users who have US accounts, they can always redeem one USDC token for one US dollar.

II.    Powered by Ethereum

USD is powered by Ethereum which makes it compatible with all Ethereum wallets. It also means that it has the powerful features found in Ethereum such as security and scalability.

III.    Facilitates global transactions

USD coin is created in such a manner that it allows investors to move dollars from their crypto wallets to other wallets, exchanges, persons and organizations across the world. It also completes transactions in a faster and secure manner which causes stability.

IV.    Regulated, transparent and verifiable

Circle is a money transmitter that’s controlled by the government making it a transparent company. Before they release any USD for use, it has to be deposited with a trusted bank for verification, and the report is made public.

Where to buy USD coin

It is advisable for an investor to have a strong malware protector on their devices before they can buy the USD coin. Doing so protects them from any possible damage such as hacking and the consequential loss of coins. An excellent example of an antivirus that you can use is the Bitdefender.

The following are the exchange sites from which you can buy BTC and ETH and then exchange for USD coin.

I.    Cex.io- Cex.io can be used in almost every country and it accepts the use of credit and debit cards for purposes of making payments.

II.    Coinmama- this exchange is also one of the popular exchanges and accepts debit and credit cards.

III.    Local Bitcoins– Local Bitcoins exchange is well known for accepting PayPal payments, western Union, bank transfers and gift cards.

IV.    LiteBit.eu- LiteBit is a Dutch based exchange. Tokens and altcoins in this exchange are priced in euros since the exchange is a Europe-based exchange.

How to store USDC

Wallets provide you with a private key which you will use to access your coins. You should never share your private key with anyone for security reasons. It is a good practice to print out your key and delete any trace of that key from your desktop so that the key won’t fall into the wrong hands in case your device gets attacked by malware.

Also, ensure to store the key in a safe place such as a safety deposit box or with a bank.

Some of the best wallets that you can store USD at include;

I.    Coinbase wallet– it supports multiple currencies including BTC, ETC, ETH, and all other ERC-20 tokens. The wallet is secured with Enclave and biometric authentication technology.

II.    Ledger Nano S– this is a hardware type of wallet known for the security it offers to coins, and it also supports multiple currencies. It can be used to store cryptographic assets as well as secure digital payments.

III.    Ledger Blue– this wallet boasts of some fantastic features such as the Bluetooth connectivity and a touchscreen. It also supports execution of multi-applications while ensuring high-security levels for the coins.

IV.    Trezor– It is a hardware type of wallet. This wallet is primarily used to store Altcoins and bitcoin.

V.    Exodus– it is a type of wallet that’s used to manage and exchange blockchain assets.

VI.    Coinomi- this wallet uses the SegWit feature for storing altcoins such as USD coin, bitcoins, and tokens.

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coinmag

Daniel is a determined and experienced writer with a keen eye on emerging technologies. Daniel aims at educating the crypto community on the developments within the space.

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