USD Coin (USDC) is a stablecoin based on a digital blockchain, which remains pegged. Along with the United States dollar, the world’s largest fiat currency, the USD coin is a digital crypto stablecoin backed entirely by the U.S. dollar or backed by expensive dollar assets such as US Treasury Securities.
It is jointly created by Consortium Circle and Coinbase. USDC coin is fully backed US dollar. This means that $1 remains pegged. If you sell a 10$ USDC coin from one USDC coin, you will get 10$, in your crypto wallet, which you can also withdraw later and this is the tokenized form of a USDC coin. {NPRBG}
Table of Contents:-
What is USD Coin (USDC)?
USD Coin is a digital currency, a stablecoin based on the digital blockchain. The value of the US dollar USD coin should always be stable. It is designed in this way. That’s why we know it by the name of usdc stablecoin. USD coin is a type of cryptocurrency, which is backed.
USDC is the reserve assets by fiat money, it is kept in different accounts in US financial institutions. USDC coin is never backed or issued by the US dollar because it is an open source project, where any person can use this software program.
When was USD Coin launched?
USD Coin Stablecoin was originally launched on a limited basis in Sep 2018. If we say in other words, the USA coin’s mantra is “digital money for the digital age” and stablecoin is designed for such a world.
Where cashless transactions are happening in more quantity. In addition to providing security for crypto traders at the time of volatility in the cryptocurrency market, users of the Usdc stablecoin also say that it can allow trading to pay in digital assets.
How does USD Coin work?
USD Coin works based on the Ethereum blockchain, which is a programmable blockchain. It is an ERC-20 token, which means it conforms to a certain set of programmatic standards. ERC-20 is the standard for utility tokens, which perform a specific function.
USDC is a variant of the stablecoin, considered as a utility token, in that it acts as a substitute for the dollar within the digital asset space.
The dollar-denominated asset issues USDC tokens in a 1:1 ratio. That is, it is equal to the USD USDC in circulation. USD=USDC
Advantages and Disadvantages of USDC
| Advantages and Disadvantages of USDC | |
| Advantages | Disadvantages |
| It has stability in price. | There is no possibility of a price increase in this. |
| It has a lot of liquidity. | Depending on the current state of the Ethereum network, transaction fees could be high. |
| It is backed by a good reputation and assets of the circle. | Fees for withdrawing USDC from exchanges can also be high. |
How to Buy and Sell USD Coin?
If you want to buy USD Coin or any cryptocurrency, for that you must have an account of a crypto exchange. Well, there are many crypto exchange platforms available.
First of all, choose the crypto exchange platform that is best for you. After choosing the crypto exchange platform, now you have to create an account by verifying your identity to create an account in it.
After completely creating the account, you now need to deposit money in your account. According to the number of coins you want to buy, deposit money in your account.
After depositing money, search for any cryptocurrency you want by typing it in the search box. Now you can buy by clicking on the Buy option. And in the same way, you can sell by clicking on the Sell option.
Now you can buy and sell any cryptocurrency.
What makes USDC special?
Stablecoins have become quite the market in recent years, but the US dollar has aimed to stand out somewhat better than other competitors over the years.
This guarantees users that they can withdraw 1 USDC and receive $1 in return without any problems.
Unlike some crypto ventures, Circle and Coinbase have also achieved regulatory compliance and this has helped cover the way for international expansion. Both projects are also well funded, which provides certainty to the stablecoin.
How to use USDC?
A USD coin (USDC) based on the Ethereum blockchain is a 1:1 representation of a US dollar. To use Circle to issue USDC tokens, you will need to create an account with the crypto exchange, and authenticate your identity (KYC) therein, and then link a valid bank account. Users can do four basic things on the Circle USD platform:-
• Use USD tokens.
• Redeem USDC.
• Send USDC to ERC20 Ethereum addresses.
• Deposit USDC from an external Ethereum wallet address.
What is USDC used for?
USDC is commonly used for:-
• Smaller cryptocurrencies make it easier to get them in the future, without having to pay for them.
• To prevent hyperinflation (for residents of countries such as Venezuela or Turkey).
• To avoid traditional financial instruments and institutions.
• To buy things in various crypto apps, exchanges, and blockchain-based games.
• To transfer money around the world quickly, securely, and at an affordable cost.
Why is USDC in vogue?
It is impossible to offer an exact amount, as the number of USDC that exist is theoretically uncountable. When someone wants to buy a coin with the dollar, a new one is created instead. However, several variables have contributed to the meteoric rise in the popularity of the USD coin, especially in 2020.
What are the risks of USDC?
Investing in USD coins is also risky. The most important concern with stablecoins is that although it is not impossible, it is still difficult to verify the exact amount of reserve currency the issuer holds. This risk is directly related to the fundamentals of stablecoins, so it is a major concern.
However, USDC is backed by reputable companies. Add to that Grant Thornton’s monthly audit. These factors confer a lot of credibility over USDC and make it more reliable than other fiat-backed stable coins such as Tether.
There is also interest rate risk with USDT deposits. As it becomes more widely accepted, rates may go up. However, the rates of return will still be much more attractive to investors as compared to returns from banks or other traditional channels.
USD Coin (USDC) FAQ
Here you can read some question answers related to USD Coin:-
Q1.:- What is USD Coin (USDC)?
USD Coin (USDC) is a stablecoin based on a digital blockchain, which remains pegged.
Q2.:- How does USD Coin work?
USD Coin works based on the Ethereum blockchain, which is a programmable blockchain.
Q3.:- When was USD Coin launched?
USD Coin Stablecoin was originally launched on a limited basis in Sep 2018.
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Q1.:- What is USD Coin (USDC)?
USD Coin (USDC) is a stablecoin based on a digital blockchain, which remains pegged.
Q2.:- How does USD Coin work?
USD Coin works based on the Ethereum blockchain, which is a programmable blockchain.
Q3.:- When was USD Coin launched?
USD Coin Stablecoin was originally launched on a limited basis in Sep 2018.
