This is because when you receive your money in USDC, you have the freedom to decide how much to save in your bank account. If you are also a crypto investor, using USDC would make funding your crypto investments easier. The transfer is usually instant, and the money reflects pretty quickly. Additionally, the transaction fees are cheaper compared to traditional financial institutions. Any given “traditional” cryptocurrency might experience fluctuations in value that make it unreliable as an everyday medium of exchange.
- Because it uses the Ethereum blockchain, USDC transactions require Ethereum gas fees.
- Mr Caputo said the exchange rate would be cut to 800 pesos to the US dollar, from roughly 391 pesos.
- Unlike other cryptocurrencies, whose value can be very volatile and subject to rapid fluctuations, stablecoins aim to provide a predictable value.
- For example, the payment process can take a few days and demand hefty transaction fees.
If you are a crypto hodler, you know how volatility can easily wipe out the value of your assets. This is especially true when the market enters a prolonged bear market. In this case, you can https://crypto-trading.info/the-most-secure-bitcoin-wallets-in-the-uk-2020/ turn your volatile crypto into USDC to stop it from losing more value. If you have tried making payments to someone in a different continent or country, then you know how costly that can be.
What makes USD Coin unique?
The value of a stablecoin is typically pegged to a fiat currency like the US dollar. However, it currently functions on the Algorand and Solana networks, with it supporting more networks over time. USDC allows users to tokenize https://coinbreakingnews.info/blog/how-to-buy-shping-crypto-shping-price-usd/ the U.S. dollar, making it usable across blockchains, crypto exchanges, and other transactions. It’s a vital component of the crypto world and significantly impacts DeFi (decentralized finance) and other financial instruments.
This allows traders from different regions to trade in a common environment. In addition to offering standardization, this approach also ensures sufficient liquidity and volume — especially in the case of small, less popular tokens. For example, the payment process can take a few days and demand hefty transaction fees. On the other hand, a reliable solution like the USDC stablecoin can serve as an effective solution for cross-border payments. USD Coin can help in making cross-border payments or remittances easily to any individual with a cryptocurrency wallet.
How to Deploy a Smart Contract in 5 Minutes?
USD Coin (USDC) is a digital stablecoin pegged to the United States dollar. Given the suspiciously high interest rates, it’s natural to assume that you’re taking on a certain degree of risk while lending your stablecoin holdings. Unlike bank accounts or other investment instruments, cryptocurrency deposits are not guaranteed or insured by central authorities and governments. In theory, you could approach a recognized USD Coin issuer to grant you 100 digital tokens in exchange for 100 US dollars. However, most investors and traders will find it easier to just purchase or trade the stablecoin on a cryptocurrency exchange of their choice, such as Coinbase. If you often find yourself converting your digital assets to fiat and vice versa, you no longer have to do so.
USDC Price Live Data
USDC helps you purchase, sell and exchange funds without leaving the cryptocurrency ecosystem at any point. Rather than following the burdensome task of converting your https://currency-trading.org/cryptocurrencies/10-4-xvg-auxiliary-reader/ cryptocurrencies into fiat currency, you can exchange your crypto assets for USDC. Interestingly, almost every big cryptocurrency exchange accepts USDC stablecoin.
Before the issuance of USDC, the equivalent amount of USD is with one of Circle’s accredited partners. Consequently, all USDC tokens are regulated, transparent and verifiable. Besides, Circle is known as the crypto startup backed by Goldman Sachs.
Converting your USDC into fiat currency
Both projects are also well-funded, giving the stablecoin certainty. The stablecoin market has become exceedingly crowded over recent years — but USDC has aimed to stand head and shoulders over competitors in several ways. Circle even has a trust and transparency website that you can visit to keep track of USDC’s reserves and audit reports. If it works the way it’s supposed to work, any USD Coin you buy will be worth the same amount in one year, five years, and so on. For investors, USDC also has the advantage of being subject to more regulatory oversight because it’s considered a stored value instrument in most U.S. states.
Pros and Cons of USD Coin
The most common use case is to purchase USDC, store it on an exchange or in a crypto wallet, and then use it to fund purchases of other cryptocurrencies. Stablecoins like USDC are used differently than cryptos like Bitcoin (BTC) or Ethereum (ETH), which fluctuate in price. The sole purpose of this crypto is to provide a stable store of value, rather than provide an asset that, theoretically, appreciates in value over time. To be sure, the trading of meme coins is highly speculative and lightly regulated, if not unregulated. Many cryptocurrencies lost over 90% of their value during the market crash in 2022.
What’s USDC? How to Use It
There are several crypto lending programs available that will pay you interest for lending your crypto. Gemini and CoinLoan are among the platforms that support USD Coin lending and offer competitive interest rates. It has a much larger market cap than USD Coin and a higher trading volume than any stablecoin. It will typically be a little easier to trade Tether for other cryptocurrencies due to its trading volume.