About USD Coin (USDC)
The United States Dollar Coin, popularly known as USD coin or USDC, is a stablecoin designed to maintain a value equivalent to the US dollar at any given time. The current USD Coin price is equivalent to $1.00 per USDC. This digital currency is backed by a reserve through Official Website: Circle, a fintech company.
USDC can be used for a wide range of purposes, which include:
- Payments: Users can make payments in person or online using USDC. It is a faster and cheaper alternative to fiat currency. The charges are less compared to traditional currency.
- Investing: Just like with the traditional US dollar, USDC can be used for investment. It offers more stability than most cryptocurrencies, such as Ethereum and Bitcoin.
- Staking: You can stake USDC to earn rewards. Staking allows you to lock up your USDC tokens to support the framework. The network offers you rewards for this service, the rewards are paid in USD coin.
USDC is a solid way to make payments online and offline. It is controlled by the New York State Department of Finance.
How Does USD Coin Work?
This digital currency assures financial security by being bolstered by the United States’ reserve funds. Every USD token in circulation has a corresponding amount of USD held in reserve. The USD Coin price today is the same as the price of 1 USD.
Even though USDC is digital, it has the same value as the fiat USD. USD Coin to USD maintains a 1:1 value at any rate. This means that the price of USD coin depends on the price history of the traditional USD.
The USDC transactions protocol is based on ERC-20 tokens and, as such, exclusively hosted on Ethereum networks. Users can safely trade USDC using Ethereum wallets or exchanges. The security of Ethereum networks is mirrored on this coin, making it a reliable option.
To receive the value of a USDC coin, one can deposit funds into any compatible wallet which then mints new tokens. However, to retrieve the value of the coin in USD, one must first burn all tokens and receive the equivalent in their bank account.
Built on the Ethereum network, the USDC provides speed and security to its users. With USDC, online purchasing of services and goods is effortless.
Where is USD Coin Used Now?
The USDC is unique to the United States of America, but users from all around the world can use USDC. The regulations around the currency depend on the region, though.
There are different ways that USDC is used around the world. Some of these include:
- Cryptocurrency exchange trading: USD coin has become a popular exchange pair on most exchange platforms. This means that users can trade USDC for other currencies such as Litecoin, BYC, and so on.
- Online payment and casinos: The number of online merchants who accept USD coin is on the rise. Platforms like Starbucks now accept USDC as a legit form of payment. Numerous online stores accept this form of payment around the world. Gaming platforms also accept USDC
- Stake for rewards: DeFi platforms allow users to stake their tokens to get rewards. Users get to enjoy special interests in their holdings while helping secure the DeFi app.
Who Created USD Coin?
USD coin was created by a fintech company, Circle, alongside Coinbase in 2018. It is a stablecoin that depends on the US dollar. This means that the coin hits an all time high when the US dollar hits a high, and it depreciates concerning the value of the USD. For every token out there, there is a corresponding amount held in reserve. The framework is designed to maintain a 1:1 value between USDC and USD.
This coin aims to provide users with a more stable and secure alternative to fiat currency. It also solves the problem of volatility faced with other cryptocurrencies, such as Ethereum and Bitcoin. The live price of USD coin is the same as the worth of a US Dollar at any rate.
How to Buy USD Coin (USDC)?
Here are a few ways to acquire and store USDC:
Cryptocurrency exchange: Exchanges are the most popular option for people who want to buy USDC. Numerous options, such as Kraken, Binance, and Coinbase, support USDC trades. To buy USDC, you must:
- Create an account with a desired cryptocurrency exchange
- Deposit funds into your exchange app
- Place an order for USDC
- Get the value and start making purchases online
Peer-to-peer (P2P) exchange: Another reliable way to get USDC is through Peer-to-peer exchange. This allows you to buy directly from other users. If you want to bypass any third-party interference. It is also ideal for users who want to purchase or sell large amounts of coin. This method provides the highest privacy as you will be using address keys.
Decentralized exchange (DEX): DEX works in the same manner as P2P exchanges, but it is more decentralized. In DEX, there is no central authority that processes the exchanges. This can be a reliable option for people who want to purchase securely.
Is USD Coin Using Mining?
You cannot mine USD Coin as it is a stablecoin. The value of the coin is tied to that of the US dollar. Every token in circulation has an equivalent amount of USD in the reserve. So consider it like a virtual twin to the USD. The framework for this coin ensures that a 1:1 value is maintained at any rate. The worth of 1 USDC will remain the same at $1.
Even though USDC operates on the Ethereum blockchain as an ERC-20 token, it is not a cryptocurrency. The stablecoin is backed by fiat currency, the US dollar, to be specific. New tokens are generated when US dollars are funded to an exchange wallet. The tokens are destroyed when US dollars are withdrawn from the exchange wallet.
Mining is a cost-intensive process that requires high-level gadgetry. USDC avoids all these costs by not mining. Users do not need to consult any graph or stock chart to make decisions.