USD Coin

usd-coin
USD Coin
$1.0000.00% 24H

USDC is a stablecoin backed by the US dollar. We have talked about Tether as a stablecoin in another article, and it is interesting to know that the USD coin is the latest stablecoin pegged to the US dollar. It was developed in 2018 by a Fintech company called Circle.

 Circle in 2021 announced that it is trying to become a national digital currency bank in the world. If you are interested in stablecoins, you can use USDC as an alternative to USDT and TUSD (TrueUSD). Keep reading to understand everything about the USD coin. 

What is USDC or USD Coin?

USDC is a stablecoin that has a fixed value of $1 per coin. Just like any order stablecoin USD coin is also backed by a Fiat currency, the US dollar. Since USDC is always worth $1, it is very safe and secure. Storing USD coins in a cryptocurrency wallet is similar to a traditional savings account in the bank.

USDC will help you facilitate their use cases over the internet, and you can convert it back to USD. 

How Does USDC Work?

USD coin operates on the Ethereum blockchain, a blockchain that lets developers create different apps and tokens using the infrastructure of the Ethereum blockchain. 

As long as you use USDC, you do not need to transfer US dollars to USD coins. 

But the essential thing about USDC is that they have a real-life value. Circle guarantees that for every USD coin inexistent, there will be a US dollar in reserve. 

How To Use USDC?

As you know, USDC is a 1:1 ratio of one US dollar that runs the Ethereum blockchain. USD coin is an ERC-20 token. 

You can use stablecoins like USD coins to: 

  • Short cryptocurrency without cashing out.
  • Buy cryptocurrency.
  • Cut the hands of the institutions and instruments. 
  • Avoid hyperinflation in countries like Venezuela
  • Send money abroad quickly
  • Buy dApps

How To Mine USD Coin?

The main difference between USDC and other stablecoins with Bitcoin is, they are not issued through mining. For instance, whenever a person deposits 100 US dollar into his USDC account, 100 USD coin is mined. The process of converting US dollar into USDC is called tokenization, which happens in the following order:

  1. The investor sends Us dollars to the token issuer bank account. 
  2. The bank uses a USDC smart contract to create the same amount of USDC. 
  3. The bank will transfer USD coins to the users’ compatible wallets, and the substituted USD will remain in reserve. 

What Is The Difference Between USDC and Other Forms of Stablcoins?

There are different types of stablecoin in the market. We are going to discuss them in the following:

 Fiat-collateralized

Fiat currency backs these types of stablecoins. Tether (USDT), TruUSd (TUSD), and Gemini Dollar (GUSD) are some examples of this type of stablecoins. 

Crypto-collateralized

The value of these types of stablecoins is pegged to reserved cryptocurrency assets. Makercoin (MKR) and DIA Crypto-collateralized stablecoins.

Algorithmic non-collateralized

These types of stablecoins are software-based economic models. There is no collateralized asset in this category. Examples: Basis; Fragments.

Hybrid 

These types of stablecoins use a blend of the above approaches. Carbon, for example, is a Hybrid stablecoin. 

Similar Stablecoins

In this section, we are going to list similar projects to USDC on the crypto market:

  • Tether
  • TrueUSD
  • Gemini Dollar
  • Paxos Standard Token 
  • Dai
  • bitEUR
  • bitCNY
  • uUSD
usd-coin USD Coin
$1.40

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FAQs

Best Way to Buy USDC in Australia

You can always buy USDC via exchanges like Bitunivex, and you can hold them on any Ethereum compatible wallet. Here at Bitunivex, we provide you with the best wallet services ever to find the best wallet easily. 

To keep your USDC safe and secure, you will need a cryptocurrency wallet. The ERC-20 is a compatible wallet for this purpose.

Is USDC Real and Safe?

As the dollar back the stablecoins, their value is always stable. So if you want to participate in the crypto market but do not want to get involved with the market’s extreme volatility, you can invest in USDC in Bitunivex. If you’re going to store your cryptos so that they hold onto their value, the best choice for you is USDC. 

According to Bitunivex, USDC transactions take only about five minutes top. Every transaction requires 20 confirmations to be on the Ethereum blockchain.

Can I Cash Out USDC Anytime?

Whenever you need to cash out your USDC, you should follow a three-step process in Bitunivex: 

  1. A trader will send a request to the Bitunivex exchange to redeem an equivalent amount of USD for USD coin tokens. 
  2. The Bitunivex exchange requests the USDC smart contract to exchange the USD coins for US dollars and take the exact number of tokens out of circulation. 
  3. Then the exchange will send the request to the issuer, and the issuer will send the requested amount of US dollars from its reserve back to the users’ bank account.
A Safe and Secure Stablecoin

Stablecoins are great for shorting cryptocurrencies or storing assets without worrying about the volatility of the market. Because these types of tokens have the value of a fiat currency, crypto reserve, or software, they will never surprise you with overnight crashes or rises. 

Suppose you live in Australia and looking for a reliable crypto exchange. We are here to introduce you to one of the most popular global crypto exchanges in the world. In Bitunivex, we are ready to provide you with wallet services, and you can always deposit and withdraw AUD on this platform. 

Your requests are important to us. We are always ready to answer your question with average chat response times of less than 3 minutes. Today start your free online account, and we will be at your company in your trading journey no matter what asset you are willing to trade.