This article explains USD Coin (USDC), covering its history, development, internal details, and methods of usage. USDC aims to provide a stable digital currency worth one dollar ($1), with each USDC coin backed by a US dollar held in a dedicated bank account. USDC is a popular option for holding digital currencies without the volatility and price risks associated with well-known cryptocurrencies like Bitcoin and Ethereum.
What is USD Coin?
USD Coin is a stable digital currency worth one dollar ($1) per coin. It was developed by the Centre project, a technology initiative backed by the major cryptocurrency exchange Coinbase and Fintech Circle. USDC enjoys a backing of one dollar held in a dedicated bank account. Holding USD Coin in a secure digital wallet is the closest thing to a traditional savings account in the cryptocurrency markets.
Unique Features of USD Coin
The main unique feature of USD Coin is that it is always equal to one dollar. This marks a significant difference from other volatile currencies like Bitcoin, Ethereum, and Dogecoin that can experience major price fluctuations in a single day. USD Coin is not the only stablecoin, as there are other stablecoins like Tether (USDT), Binance USD (BUSD), and Dai that are also pegged to the dollar.
How to Invest in USD Coin
As a key player in the creation of USDC, Coinbase is the easiest place to buy USD Coin. Furthermore, USD Coin can be traded on several popular cryptocurrency exchanges, including Binance, Bitfinex, Crypto.com, Kraken, and Uniswap. Popular digital wallets supporting USD Coin are available, including Coinbase Wallet, Exodus, and hardware wallets like Ledger. The process of transferring USD Coin takes about five minutes to complete and requires 20 confirmations. Transferring USD Coin incurs Ethereum gas fees, which can vary depending on network congestion.
Source: https://www.thebalancemoney.com/usd-coin-usdc-explained-5197421
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