USDC – what is it?
6 min read
USD Coin (USDC) stands as a stablecoin created through the collaborative efforts of Centre Consortium, a partnership established in 2018 by Circle and Coinbase, with the overarching objective of setting the governance and standards for the future digital financial landscape. USDC, their inaugural joint venture, was conceived to introduce a layer of trust and transparency to digital payments on a global scale.
USDC is a stablecoin that is entirely supported by reserves denominated in US dollars, ensuring its value remains constant at 1.00 USD per USDC. Currently, it is the second-largest stablecoin on the market, trailing only Tether (USDT).
How does it work?
USDC provides a stable and reliable digital representation of the US dollar, enabling users to access the benefits of cryptocurrencies while mitigating the price volatility associated with other digital assets like Bitcoin and Ethereum.
Is USDC valuable?
The value of USDC (USD Coin) is designed to be stable and is pegged to the US dollar (USD) at a 1:1 ratio. This means that 1 USDC is always intended to have the same value as 1 US dollar. USDC’s stability is maintained by backing each USDC token with US dollar reserves held in custody by regulated financial institutions.
As a result, the value of USDC should not fluctuate significantly and is intended to remain constant at or very close to 1 USD per USDC. This stability makes USDC a reliable digital representation of the US dollar, and it is often used as a stable medium of exchange and a store of value in the cryptocurrency ecosystem.
Real use cases of USDC application
Much like Bitcoin and the array of other cryptocurrencies available, USDC boasts practical applications that everyday individuals can harness. Below, you’ll find some of the most popular use cases:
1 Guarding Against Inflation and Volatility:
In numerous countries, currencies are grappling with soaring inflation rates and devaluation against the US dollar. When your money’s value is in decline, a wise move could be to convert it into USDC, preserving its worth.
For investors, navigating the crypto market often involves significant price fluctuations. Converting your cryptocurrency holdings into USDC can offer a strategic means to stabilize your portfolio during times of market unpredictability.
2 Cross-Border Remittances:
Most cryptocurrencies aren’t bound to any central institution or government, making them ideal for cross-border payments. With a stablecoin such as USDC, people can effortlessly send funds internationally in just a few clicks, without the need for a traditional bank account or remittance services.
3 Crowdfunding:
Both nonprofit organizations and startup ventures frequently require financial backing to pursue their objectives. Cryptocurrencies have emerged as an efficient and transparent means of supporting such ventures. USDC is a reliable choice to ensure the value of your donations remains stable over time, whether you’re seeking contributions or making them.
4 USD Pricing:
Picture this scenario: you’re shopping on an online marketplace that accepts cryptocurrencies as payment. Product prices are displayed in the cryptocurrency’s value, like Bitcoin. Calculating the actual cost of items can be challenging due to the need for conversions.
To simplify matters, pricing products in USDC can greatly enhance clarity. This applies not only to other cryptocurrencies available on exchanges and marketplaces but also to forward-thinking e-commerce platforms that accept cryptocurrencies such as USDC.
5 Blockchain Compatibility:
USDC is compatible with multiple autonomous blockchains. This compatibility streamlines its integration into payment systems and applications that traverse various blockchains simultaneously.
These various applications illustrate the versatility and utility of USDC in everyday transactions and financial endeavors.
The difference between USDC and USDT
USDC and USDT share a common concept in their functionality: both stablecoins are supported by the US dollar at a 1:1 ratio. Nevertheless, the primary distinctions between them are rooted in the issuing entities or companies.
Source: ZipMex
USDT’s four-year advantage has made it the more favored stablecoin, consistently holding the highest trading volume. Nevertheless, USDC has been diligently narrowing the gap and is now accessible on numerous blockchains alongside USDT. Additionally, some argue that USDC’s transparency shines through, as its reserves undergo regular scrutiny by the US Securities and Exchange Commission (SEC).
Buy and Sell USDC on Noones
USDC is officially accessible on Noones, you can enjoy its advantages and engage in buying and selling USDC within the marketplace. Here’s a step-by-step guide on how to do it:
1. Create or Log In to Your Noones Account:
Log in to your existing Noones account or create a new one to receive your complimentary Noones Wallet. You can do this by visiting the Noones homepage.
2. Browse Available Offers:
Once you’re ready to explore offers, choose between “Buy” or “Sell,” depending on your intent. Select USDC as your preferred cryptocurrency and specify your desired payment method. Click the “Find Offers” button.
3. Review and Select an Offer:
You’ll be presented with a list of available offers. Examine the details of each offer, and when you find one that suits your requirements, click “Buy” or “Sell.” You’ll then be directed to the individual offer page, where you can review all trade details. When you’re prepared, specify the amount you want to buy or sell and click “Buy now” or “Sell now.”
4. Initiate the Trade:
Once the trade begins, your trade partner will provide you with a comprehensive set of instructions to follow.
If you’re buying USDC, make your payment and mark the trade as “Paid.” Allow your seller some time to verify the payment and release the USDC from escrow.
If you’re selling USDC, wait for your trade partner to send the payment and verify its receipt. Once confirmed, release the USDC from escrow.
5. Complete the Trade:
After these steps, the trade will be finalized. All that remains is to provide feedback for your trade partner and prepare for your next trade.
If you already hold BTC, ETH, or USDT in your Noones Wallet, you can easily convert them into USDC. Access your wallet, and click on the three dots (…) located beside the Send and Receive buttons. You can use the built-in converter to make the conversion.
This process allows you to utilize the benefits of USDC and engage in secure and convenient transactions within the Noones platform.
The choice is yours
USDC is in the list of cryptocurrencies supported by Noones, thus you can utilize the four leading cryptocurrencies in the market, which include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC)
Source: CoinMarketCap, Oct-26-2023