The Best Crypto Exchanges to buy and hold USDC (USD Coin)?

The Best Exchanges to buy and hold USDC (USD Coin)?

Do you want to buy and hold USDC (USD Coin)?? Now you are looking for an exchange to invest in USDC (USD Coin)??

Check out the 3 best exchanges to buy USDC (USD Coin)? today.

US Dollar Coin or USDC is a stablecoin with guaranteed collateral issued and managed by the cooperation between Circle and Coinbase developed by the Center.

Launched in September 2018, USDC is one of the most important stablecoins to hit the cryptocurrency market in recent times. Currently, USDC is the second largest stablecoin in the market with a market cap of over $10 billion.

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What is USDC Coin?

USDC is made up of a 1:1 ratio with the US dollar and operates entirely within the framework of the US remittance law. Two companies, Circle and Coinbase, which are currently issuing USDC, are registered and licensed as Money Service Businesses (MSBs) with FinCen, a US financial regulator. This shows that the books of accounts are public and are subject to inspection by reputable financial regulators.

Currently, USDC is available as ERC-20 token on the Ethereum blockchain, Algorand ASA token, and Solana SPL token.

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The need for stablecoins

Stablecoins or digital assets represent one of the fastest-growing segments of the cryptocurrency industry in line with fiat currencies. Since early 2019, the market cap of stablecoins has risen from $2.6 billion to over $5.5 billion.

There are several factors behind this impressive growth. Unlike traditional fiat currencies, stablecoins offer many advantages, including fast financial transaction settlement (seconds), low transaction fees (average $0.2 per transaction), privacy and self-management. However, the most decisive advantage is the overall interoperability of cryptographic and decentralized financial ecosystems.

In addition to being used as a safety measure against the volatility of cryptocurrencies, stablecoins are increasingly used as a safe and easy value tool for overseas remittances and politically or economically unstable and high-inflation countries. Stablecoins provide stability even in unstable macroeconomic conditions.

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Types of stablecoins

The three main methods used to achieve stability in stablecoins are centralized collateral protection, on-chain collateral management, and a fiat tax-style stabilization model.

Examples of supported types of centralized collateral protection stablecoins include USDC, Tether (USDT), TrueUSD (TUSD) and Binance USD (BUSD).

These types of stablecoins basically serve as digital wrappers for USD’s liability statement. For example, for every USDC issued, Circle and Coinbase keep 1 USD in their bank accounts, in which case each USDC can theoretically be redeemed for 1 USD from its reserve.

However, unlike the Tether Group, which has not yet been properly audited by the public, Circle has announced that it is being audited monthly by Grant Thorton LLP, a top five audited accountant.

The most notable example of an on-chain collateralized storage type of stablecoins is the DAI issued and managed by Maker DAO. DAI achieves price stability by utilizing collateral liabilities displayed on Ethereum-based assets that are approved by Maker’s native digital token (MKR) holders. Collateral assets may include Ether, Wrapped Bitcoin (WBTC), or other stablecoins such as USDC.

A final, less popular type of stablecoin is the stablecoin, often algorithmic or seigniorage-based, including Ampleforth (AMPL), BASED, ESD, and DSD. Similar to the way central banks control the supply of fiat currencies, these stablecoins try to achieve price stability by algorithmically controlling the issuance rate or money supply of tokens.

There are many other variations of this stabilization model, but the basic principle is always the same: when the price of a stablecoin falls below the desired peg price (usually one US dollar), the algorithm triggers an open market buyback and burns the circulating supply of tokens. start lowering

To date, no seigniorage-style stablecoin project has successfully launched and successfully managed stablecoins. Instead, centralized coins and on-chain custodial-based stablecoins are gaining popularity, each with its own advantages and disadvantages. For example, due to the inherent transparency of blockchain, the collateral of DAI stablecoins can be easily verified in real-time, whereas centralized stablecoins such as USDC and Tether are audited by a third party and independent of the financial institution. You have to rely on inspection. In addition, centralized stablecoins like USDC are said to be more secure than decentralized coins in terms of operation, but they are subject to censorship, so their private nature is considerably lower.

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How does USDC work?

As mentioned earlier, USDC is a centralized, fiat-collateralized stablecoin issued and managed by Circle and Coinbase. This means that each USDC token in circulation corresponds to one dollar (USD) on the Circle’s bank reserve.

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How to convert USD to USDC?

The process of converting USD to USDC – or tokenizing USD on Ethereum, Algorand, or Solana blockchain – is simple and takes four steps:

• To buy or withdraw USDC from the primary market or directly from Circles, you will need to sign up, prove your identity with KYC and link a legitimate bank account.
• After that, it’s simple. You transfer USD to your Circle’s bank account. For tokenization, there is no minimum possible amount.
• Circles mint USDC equivalent to the amount transferred to the USDC smart contract.
• USDC is transferred to the owner’s cryptocurrency wallet, and USD is stored in the Circle bank account as a reserve for payment.

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How to convert USDD to USD?

So, if you want to withdraw USDC against USD in circles, the process is just the opposite.

• I ask circles that I want to convert my USDC tokens to USD.
• The Circle signals the USDC smart contract to recover an amount equal to the requested amount of USCD tokens in circulation.
• The circle then takes the requested amount in USD from the bank’s reserve and sends it. The minimum recoverable amount is 100 USD.
• The requester will receive the USD equivalent of the requested amount directly to their bank account within 1-2 business days (all charges incurred will be deducted).

However, buying USDC on the secondary market is just as simple as buying any other cryptocurrency. You can also buy fiat on several cryptocurrency exchanges, including PEMEX, which supports bank transfers and credit cards, or trade with other cryptos on other decentralized exchanges.

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How to use USDC?

There are several advantages to tokenizing dollars (USD) on a blockchain. First of all, users can move money anywhere in the world in a matter of minutes, more cheaply. In addition, it is possible to store tokenized USD in a non-custodial manner and smoothly buy/sell cryptocurrencies, and various DeFi protocols such as exchanges, crypto loan protocols, profit farming, and blockchain-based games and the non-licensed way you can interact.

Since most of the USDC in circulation is issued as ERC-20 tokens on the Ethereum blockchain, it can be stored in any Ethereum-based crypto wallet.

Hot wallets such as MetaMask, MyEtherWallet, and Trust Wallet, and hard wallets such as Ledger and Trezor are examples.

Users can earn passive interest by saving their USDC balance directly into a high-yielding interest account.

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