How to buy USD Coin (USDC)
In the summer of 2019, the Circle Crypto Exchange reported that Bermuda began to accept tax payments in USD Coin (USDC).
What is USD Coin (USDC)? Why should you invest in USD Coin (USDC)? Will these investments be profitable?
How can you buy USD Coin (USDC)?
New USD Coin (USDC) appeared in the fall of 2018. According to Circle, USD Coin (USDC) took second place in popularity among stablecoins.
Stablecoins are cryptocurrencies that are tied to regular currency or physical goods that can replace the currency. For example, gold or oil.
USDC is secured by American dollars in a 1: 1 ratio.
Coins linked to fiat money are not subject to the same market changes as other cryptocurrencies.
If the owner of the USDC wants to cash out his coins and convert them into dollars, when converted into fiat money, the USDC is burned. However, only citizens of the United States have such a service so far.
Why should you buy USDC?
USD Coin operates in the Ethereum payment system. It is a kind of Ethereum’s fork. USDC was created with open-source code based on the existing Ethereum code. Therefore, the USDC system can be improved. Any user can check and control transactions using USDC.
Due to the high liquidity, USDC can be traded on any major crypto exchange.
Grant Thornton oversees and monitors USDC capitalization. This large accounting company regulates the provision of USDC with dollars 1: 1 and publishes monthly reports.
The functioning of the USDC is also monitored and regulated by the brutal overseer NYDFS, New York’s Department of Financial Services.
USDC could theoretically have several issuers. Their number depends on the number of partners of the Center, which organized Circle and Coinbase. At the moment, Circle has more than one hundred partners, which allows for a constant flow of funds.
The advantage of using the USDC system is that transactions with USDC are carried out instantly. It is possible to buy and sell USD Coin (USDC) within a couple of minutes. The commission for conducting transactions and providing financial services is less than in banks.
Since USDC is a centralized system, the system’s crypto management can freeze or confiscate stablecoins. It happens if the owner of USDC becomes a lawbreaker or if he has made money and uses crypto illegally.
To exchange USDC for regular currency, you need to go through a verification procedure, which opens the personal data of the coin holders.
How to buy USD Coin (USDC)on the exchange
USD Coin (USDC) can be bought on the Circle’s website. Online fiat funds are tokenized in USDC and transferred to wallets.
To buy USDC, you must
- create an account on the Circle’s website;
- deposit US dollars.
- after a few minutes, get the right number of coins. The smallest deposit amount is only five dollars.
How to sell USD Coin (USDC)
To sell USD Coin (USDC), you need to complete the purchase steps in reverse order.
Dollars are returned to the account in a couple of minutes. Generated USD Coin (USDC) will be destroyed. However, this method is available only to citizens of the United States, and those with accounts registered with American banks.
The remaining citizens of the world can buy and sell USD Coin on various exchanges. It is preferable to use status exchanges, so the seller’s tokens will be more secure. USD Coin tokens are available on more than 44 commercial crypto platforms.
How to store USD Coin (USDC)
All ERC-20 standard wallets are suitable for USDC storage (Alpha Wallet, Atomic Wallet, Bit Go, CitoWise, CoinBase, etc).
A wallet is a browser application that does not need to be downloaded. MyEtherWallet system conducts transactions based on blockchain technology. The disadvantage of this storage is the low level of protection against hackers.
Owners of Android and iOS can download the Coinomi application, thanks to which it is possible to save more than two hundred varieties of crypto coins, including USDC.
However, Coinomi does not have a desktop and web version.
Hardware wallets are also suitable for USDC storage. This is one of the safest ways.
Crypto exchanges offer cryptocurrency savings service but this storage method is quite unpredictable due to hackers. Not all exchanges provide a replacement for stolen crypto coins.
Future of USD Coin (USDC)
Even though USDC is a young project, it can be considered successful. According to financial experts at Skew, USD Coin has every chance of taking a leading place among existing stablecoins.
The biggest reason is the United States dollar support. As you know, the economy of the United States is the most powerful in the world. The project has a sufficient number of financial partners supporting USD Coin economically and informationally.
Also, cryptocurrencies operating in the blockchain system have several advantages that are characteristic of this technology. USD coins act within the law and comply with all banking standards.
That is why investing in USD Coin will be interesting for both large investors and small investors. For individuals, investing in USDC creates the opportunity to generate a profit on the crypto exchange.
Centre plans to organize a global financial system, where USD Coin will be used as money.