USD Coin (USDC) – Everything You Need to Know
USD Coin (shortened to USDC) is a form of cryptocurrency known as a stablecoin. A stablecoin is a form of digital currency that is attached or ‘pegged’ to a stable fiat currency. In the case of USDC, the fiat currency is the US dollar.
Understanding USDC can be complicated, as with any other type of cryptocurrency. However, with a little research and patience, you can learn the basics of USD Coin to start investing in this stablecoin and building a strong and stable investment portfolio.
Let’s discuss USD Coin in more detail.
What is USD Coin (USDC)?
USDC is a type of cryptocurrency that is designed to maintain its value over time, thanks to being attached to the US dollar on a one-to-one ratio (meaning the value of one USDC is equivalent to the value of one US dollar).
You can purchase, sell, and trade USDC on various online platforms and mobile applications. If you purchase USDC and no longer wish to keep it, you can sell a gift card for USDC or exchange it directly for another form of cryptocurrency.
Why Do People Invest in USDC?
There are many reasons why people choose to invest in USD Coin. Let’s take a look at some of the benefits of purchasing and trading USDC.
USDC is Known for Being Transparent
USDC is well-regulated and is known for its transparency. It’s a secure digital currency to invest in, and you can rest assured knowing that your hard-earned money is protected when you purchase USD Coin.
Circle, the company that supplies and monitors USDC, is extremely honest and open about its processes. It frequently publishes documentation relating to audits and cryptocurrency regulatory guidelines to the public to foster a sense of trust and community with its investors.
Circle also conducts third-party audits of its own coin to provide additional security and reliability. Taking this approach to ensure every USD Coin token is legitimate and paired with the equivalent number of US dollars has enabled Circle and USDC to build a well-trusted and credible reputation that sets it above other forms of cryptocurrency.
USDC is a Stable Form of Cryptocurrency
Unlike other forms of digital currency that are highly sensitive to the volatility of the stock market, USDC is relatively stable. Due to being pegged to the US dollar, it’s likely to maintain its value in the future, making it a reliable and steady investment choice.
USDC Has Multiple Use Cases
USD Coin is a versatile cryptocurrency that has several different use cases. Some of the most notable use cases include its use as a trading pair on crypto exchange platforms and its role in Decentralized Finance (DeFi).
USDC is a stable asset to invest in and exchange because it’s a trading pair with the US dollar. It’s commonly used in DeFi for buying, lending, selling, and exchanging, alongside similar alternatives like Tether (USDT) and TrueUSD (TUSD).