USD coin is visible on the ticker as USDC. It is a stablecoin that operates on Ethereum, Algorand, Solana, and Stellar blockchains. The stablecoin is designed to offer a digital age currency that is collateralized with the US dollars.
Traders can redeem it on a 1:1 basis. Regulated financial institutions [Circle & Coinbase] issued it and the accounting firm, Grant Thornton LLP supports it. It is a great investment that offers crypto investor’s security as well as its stability and can modernize the Defi sector.
USDC wallet is approved on every crypto exchange and you can get it from a research blog called ZenGo X. It is a great online platform that helps to enhance your cryptocurrency knowledge.
Lately, USDC has been increasing in popularity because of its decentralized nature and a guarantee that users can exchange 1 USDC for $1.
How does USDC work?
Every US dollar supports every USD coin and the process is called tokenization.
- You have to deposit cash into the bank account of the token issuer.
- The token issuer will use a USDC smart contract for creating the same amount of USDC.
- The cash that is deposited is held, while you receive newly minted USDC. It ensures that for every 1 USDC held there is 1 US dollar held, which offers stability to the stablecoin.
Redeeming the USDC for fiat currency
- You have to send an application to redeem the USDC for fiat currency.
- The token issuer will use the same USDC smart contract and exchange it for equivalent US dollars.
- Your bank account will receive the equivalent US dollars minus transfer charges.
Benefits to trade USDC
How to acquire USD coins?
- You can opt for the mining process using ASIC setup, which is expensive hardware.
- You can even buy, sell, or trade USDC on Coinbase exchange or other supported platforms like Binance and Poloniex.
If you buy, sell, or mine the USD coins then you will need a crypto wallet to store them. There are three popular ERC-20 wallets including –
- Exchange wallet
- Hardware wallet
- Software wallet
How to choose a crypto broker or exchange?
Some factors to consider while choosing a crypto broker is –
- Leverage [go for low-interest rates, while trading with a leverage option]
- Choose a broker that offers competitive spreads, customization, and a simple withdrawal process.
- Check customer service.
- Check cryptocurrency regulation in your state or country.
Helpful tips for new crypto-traders
- The Crypto market is highly volatile. It is 24/7 in action, so stay updated with real-time developments and trends.
- Sharpen your trading skills using demo accounts before trading with genuine currency.
- Gain a lot of insights from blog posts and online tutorials.
- Technical analysis helps to maximize profits. So, learn to read bar, candlestick, and line charts.
- No one can predict market directions, so have a solid money management strategy outlined and follow it strictly.
- Always invest affordable cash in cryptocurrency trading.
With stablecoin investors can move in and out of highly volatile trades quickly.