Beginner’s Guide to USD Coin Exchange

Beginner’s Guide to USD Coin Exchange

The stablecoin market is one of the interesting ecosystems in cryptocurrency. There have been a number of different stablecoin projects launching their own coins and one of the latest ones is the USD Coin (USDC). USD Coin is a fresh stablecoin pegged to the US dollar and can be traded on the USD Coin Exchange.

What Is the USDC?

The USDC is ERC-20 compatible because it is created on the Ethereum blockchain. This was done in order to support rapid transfers of USCD on the Ethereum network and to take advantage of the existing security on the Ethereum blockchain. It also makes it easy to store and exchange. This coin is unique because it’s the first stablecoin that is supported by Coinbase. Read this Coinbase review and learn more about this exchange. Since it is backed by the U.S. dollar it is not meant to move significantly from the value of the dollar, which means investors can sell and buy for $1.

What Does It Mean When It’s Backed by the U.S. Dollar?

This coin is backed 100% by actual U.S. dollars, which means it’s designed for nominal price volatility. The U.S. dollars are held in reserve accounts and are regularly audited. It is not the first U.S. dollar-backed coin. It is also not the most popular. Currently, the most popular would be Tether, but Tether has been under scrutiny over the state of the finances surrounding it. At one point, it was claimed that Tether had one real dollar in the bank for every Tether in circulation. There is an ongoing investigation by the New York Attorney General about this. This investigation has led to other U.S. dollar-backed stablecoins with more transparent auditing and funding. It may not be completely unique compared to other competitors but it is regulated, audited, and fast. The parent company of USDC is in fact a registered Money Service Business in the U.S. so it’s regulated to help fight money laundering. It is also audited by Grant Thornton, which is a top 10 accounting firm in the world. It is faster than sending U.S. dollars to institutions and people when banks are involved. It offers the desirability and stability of the U.S. dollar but has the speed of typical cryptocurrency transactions.

How the USD Coin Exchange Works

Coinbase customers from all over the world are able to purchase and sell this coin on Coinbase Prime and Coinbase Pro, but the regular Coinbase platform only makes this available to those who have a U.S.-based account. The USDC can be sold and bought through Coinbase web-based applications and through iOS apps and Android mobile devices. Once purchased, tokens display as available assets in the wallet. Coinbase customers who buy USDC with USD from a bank account have fees waived. However, debit card and credit card purchases are subject to standard transaction fees.

The coin can be traded on Coinbase and Poloniex, as well as other major exchanges. You can also use it in a variety of different decentralized finance protocols. For example, you are able to deposit it in BlockFi, a loan company that gives you interest for depositing USDC and other coins. It is typically held as a stable asset by crypto traders, just as other stablecoins are. Stablecoins are helpful for traders who want to have a way to trade cryptocurrencies for U.S. dollars. It’s a better way to trade for more volatile currency, such as Bitcoin.

The Future of USDC

Traditional investors have been concerned about cryptocurrency for two keys reasons: volatility and lack of regulation. However, USDC and other stablecoins have been hoping to change this for more well-established institutions to start diving in.

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