USDCoin
What is USDCoin?
USD Coin (USDC) is a cryptocurrency whose value is 100% backed by assets in US dollars, its exchange rate is pegged to the US dollar in a ratio of 1:1. USD Coin is a stablecoin, and stablecoins are usually backed by reserve assets – fiat currencies such as euros or dollars, or debt securities such as US Treasury securities. This is necessary to maintain a stable exchange rate of the stablecoin. USDC assets are held in special accounts with US institutions, and all assets are recorded and monitored by the accounting company Grant Thornton.
It should be noted that the name of this cryptocurrency can be misleading and it is not actually associated with the US government in any way. This project is open source, which means absolutely anyone can contribute to the development of the project.
You might be wondering how USDC maintains a 1:1 peg to the US dollar. When you start buying, for example, one USDC coin for fiat money, your fiat dollar is transferred to a special bank account, and one USDC is minted in return and given to you. This process also works in reverse when selling, the fiat money is transferred to your bank account and your USDC is burned. USDC has compatibility with such blockchains as:
- Ethereum
- Algorand
- Solana
- Stellar
- TRON
The entire USD Coin systеm is managed by Centre, a consortium that was formed by the Coinbase (COIN) crypto exchange and Circle, a fintech firm. Center wants to change the global world of finance by bringing together all currencies, financial services, every merchant and person across the planet. Examples of using the USDC coin:
- A safe haven in times of high market volatility.
- Measure the value of other digital assets and easily exchange them.
- A translation tool. USDC is very convenient to use as a way to transfer money, especially across country borders.
- Buying US dollars. In some countries, it can be very difficult to buy fiat US dollars, but at the same time, it is much easier to buy USDC.
- Crowdfunding. It can be much easier for various startups to raise money in USDC than in fiat money.
USDCoin mining
USDCoin, like any other stablecoin, cannot be mined in any way.
How to buy USDCoin?
Buying cryptocurrency, you can stumble upon scammers. Therefore, you need to use only proven services, it can be some kind of crypto exchange or crypto exchange, such as Leoexchanger!.
USDCoin price dynamics (in USD)
USDC is a stablecoin, which means its price is fairly stable with very little fluctuation. This can be seen in the graph below:
How to store USDCoin?
You have to choose how you want to store your cryptocurrency. It can be either one of the many crypto wallets or an account on one of the crypto exchanges. You just need to choose the option that will be the most reliable and convenient for you.
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