USD Coin (USDC) cryptocurrency review: price, security, storing, fees
The USD Coin is one of the cryptocurrencies available on the XMLGold e-currency exchange platform, in this article you will learn more about this stable coin.
Even a few hours in the market may have a tremendous effect on the price of a cryptocurrency, much alone a few days and weeks.
In such a scenario, a solution is needed that allows currency prices to remain stable while still enabling customers to take advantage of decentralized payment options.
In this article, we'll take a closer look at one stable coin developed by the CENTRE consortium, which includes Coinbase and Circle: USD Coin (USDC).
What is USD Coin?
It is a relatively new stable coin, USD Coin (USDC), which ties to the US dollar. On September 26, 2018, Circle and Coinbase collaborated to launch it. USDC is a substitute to Tether (USDT) or TrueUSD (USDT), which are both USD-backed cryptocurrencies (TUSD).
All in all, a service to tokenize and enable the usage of US dollars via the internet and public blockchains is provided by USD Coin. In addition, USDC tokens may exchange for USD at any moment. The ERC-20 smart contract ensures that USDC tokens may be issued and redeemed.
Putting US dollars on the blockchain makes it possible to move them across the globe in a matter of minutes, bringing much-needed stability to the cryptocurrency industry. Also, it creates new avenues for trading, lending, risk-hedging, and more.
Who is the team behind USD Coin?
The Centre consortium, cooperation between Circle and Coinbase, is behind the development of USD Coin. As for USDC's first commercial issuers, Coinbase and Circle have built the technology and regulatory framework.
The circle was formed in 2013 by Sean Neville and Jeremy Allaire, both of whom are successful entrepreneurs.
Because Circle is an authorized Money Transmitter, its financial records are public. Licensed money service firms in the United States are called money transmitters and must adhere to federal rules and regulations.
Before the issue of USDC, Circle's certified partners have the corresponding amount of USD. Because of this, all USDC coins govern by regulations, are transparent, and can be verified. The circle is also known as the Goldman Sachs-backed cryptocurrency business.
What are the benefits of USD Coin?
USDC has a few distinguishing characteristics. These features make the USDC a popular option for cryptocurrency purchasers, particularly newbies.
1. Easily transferable:
It doesn't matter what time of day or night, two parties with an Ethereum wallet may exchange USDC in a couple of seconds.
Even if someone has to transfer an enormous sum to an overseas supplier, the money will be received by the provider in a matter of seconds, making the transaction as simple as making an online purchase.
ACH or wire transfers, on the other hand, may take anywhere from one to three days.
As long as USDC stays constant, currency price volatility eliminates. There is a high cost associated with sending money overseas.
The Ethereum gas charge is the sole cost associated with USDC. In addition, the cost fixes, making it an especially appealing option for big payments.
2. Compatibility with dApps:
dApps, blockchain-based games, and cryptocurrency exchanges have all seen rapid growth in the last few years. Tokens based on the ERC-20 standard, such as USDC, may be used in any program.
You may acquire a broad variety of products in the crypto-verse, such as digital artwork using this method.
Depositing USDC into sites like Compound might potentially result in a better interest rate than one would get from a traditional bank. As a result, they're a better investment than keeping cash in a bank.
3. Transparency and Security:
The USDC is issued by Circle, a member of the Center Consortium. For the USDC initiative, it has teamed up with Coinbase.
Grant Thornton LLP also does an audit of the transactions. One of the most recognized firms and a major accounting company involve in ensuring that the business is operating by the law.
If you're using a private wallet, USDC is a safer option than keeping cash in a bank. Login credentials, such as those for PayPal or online banking, may readily be obtained by a third party.
Passwords are hashed on the server. Once they get access to this hash, a hacker may run password cracking tools on it, gaining access to the password. It implies that a hacker can only get access to a user's USDC account if they get their hands on the user's computer's private key.
It's unlikely that anyone's home computer will hack unless they're a well-known, high-volume cryptocurrency trader.
All Stablecoins have this feature in common. Stablecoins appeal to some investors because they enable them to participate in the cryptocurrency market without worrying about the risk of large price swings.
As an example, consider comparing the price movements of USDC and BTC over the last year.
The chart's pattern reveals the difference in the risk-to-reward ratio.
The value of USDC doesn't vary like BTC or ETH since it's linked 1:1 to the dollar. Grant Thornton certifies the company's reserves weekly, so investors don't have to worry about the company's transparency.
5. A viable alternative to Tether (USDT):
Tether's quality of collateral has been called into doubt in the past, hence USDC is a better option. As long as investors can get a decent night's sleep, they should continue with USDC.
Since risk aversion is the primary reason for an investor to acquire a Stablecoin, why not?
On top of that, Voyager pays a hefty 9% interest on USDC, while Tether bears no interest charges at all. It serves to strengthen USDC's hand.
Where to use USD Coin?
USD Coin (USDC) is a digital representation of one US dollar that exists on the Ethereum network in a 1:1 ratio. Tokens may be utilised on this app if the app is compliant with the ERC-20 token standard, which is currently in use.
Registering for an account, verifying your identification (KYC), and linking a legal bank account are all prerequisites for using Circle's USDC tokenization and redemption services. Users of the Circle USD platform may execute four primary functions:
• You might tokenize the US dollar.
• Exchange USDC for cash.
• Send USDC to an Ethereum address that is ERC20 compliant.
• Deposit USDC using external Ethereum wallets.
For tokenizing and redeeming services, Circle USDC does not charge customers any fees, save for a $50 cost for inaccurate and rejected bank transactions. All of Coinbase's usual fees apply to USDC transactions.
The smallest quantity of USDC that may redeem is 100 USDC. On business days, tokens process and it may take up to 24 hours.
There is no minimum quantity of tokenization, and the process may take up to two business days to complete.
Stablecoins such as USDC are often used to:
• Make it simpler to purchase cryptocurrencies in the future by shorting cryptocurrencies without cashing out.
• Avoid the use of conventional financial tools and institutions.
• For residents in nations like Venezuela or Turkey, hyperinflation is a major concern.
• Send money quickly, securely, and affordably over the world;
• You may buy products in numerous crypto apps, exchanges, and blockchain-based gaming platforms.
Exchange USD Coin at the best rate on XMLGold
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The information provided here might help a trader or investor looking for the best market pricing for something similar.
XMLGold offers direct buying of many cryptocurrencies using the aforementioned payment options. Stablecoins like USDT, TUSD, and USD Coin may all purchase using XMLGold at this time, in addition to Bitcoin (BTC), Litecoin (LTC), and other cryptocurrencies.
XMLGold is a fantastic option because of the following reasons:
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XMLGold has been around for so long because you can get your hands on the things you need anytime you want.
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5. Bonuses of up to 3.5 percent are possible depending on the sort of trade or transaction you make. It may be beneficial, it produces excellent outcomes, and it is well worth the effort every time.
Pros and Cons
1. Native ERC20:
USDC is a native ERC20 token, which means it can only be found and used on the Ethereum network. As a consequence, the current supply and transactions can be verified by anybody. Several different types of personal cryptocurrency wallets are compatible with USDC.
2. Coinbase featured stablecoin:
For the time being, Coinbase's featured stablecoin is USDC, which ensures a 1:1 exchange rate (USDC: USD). Users may withdraw USDC to their bank accounts with ease.
This stablecoin is traded on a majority of the largest cryptocurrency exchanges and is the second most liquid stablecoin after USDT.
4. Monthly audits:
To verify that USDC is backed 1:1 by US Dollars in segregated bank accounts, Grant Thornton, an accounting company, conducts monthly audits.
5. Regulated & Compliant:
Licensed by the NYDFS (New York State Department of Financial Services), Circle, Ltd. is completely regulated and compliant to do business in the United States. In terms of financial regulation, the NYDFS is the harshest in the country.
6. Strong institutional backing:
Circle, Ltd. has received many rounds of venture money and is highly well-funded for its activities.
Circle, Ltd. mints, maintains, and operates the USDC in a centralized manner. In circumstances where a user is found to have breached regulatory regulations or behaved in an unlawful capacity with the asset, centralized stablecoins may be frozen or seized.
2. Purchase & Redemption KYC:
To redeem USDC for fiat currency, Circle, Ltd. requires that customers undertake KYC and furnish Circle, Ltd. with proof of their identification. For privacy-conscious consumers, this is nothing more than usual protocol.
There are two key reasons why traditional investors are cautious about cryptocurrencies: the absence of regulation and the volatility of the market.
Stablecoins like USDC, among others, are attempting to alter this, enabling established institutions to engage in the cryptocurrency market.
Since USDC transactions are compliant with the United States remittance regulations, USDC expects to grow steadily in the future. The USDC has also proved to be a popular currency among investors in recent years.
There has been a considerable rise of stablecoins over the last few years since the market has seen tremendous volatility in big cryptocurrencies like Ethereum and Bitcoin. Stablecoins like USDC, on the other hand, are supposed to be impervious to such swings in value.
As a result, USDC will continue to be listed on many exchanges in the years to come, including Luno, one of the most popular and user-friendly exchanges.