What is USDC and how does it work
USD Coin (USDC) stands as a stablecoin developed by the Centre Consortium, a collaborative effort between Circle and Coinbase formed in 2018. Their shared mission, “to provide the governance and standards for the future digital financial ecosystem,” resulted in USDC—a stablecoin designed to foster trust and transparency in digital payments globally.
As the second-largest stablecoin after Tether (USDT), USDC boasts a market cap of $24,444,786,335 USD at the time of writing this article, backed entirely by US dollar reserves, maintaining a stable value of 1.00 USD per USDC.
Functioning primarily as a centralized stablecoin, USDC serves as a transparent fiat-to-blockchain solution, acting as a representation of the US dollar in the cryptocurrency realm. It offers users the benefits of decentralized finance, combining the advantages of cryptocurrencies—transparency, reduced fees, and faster transaction speeds—with access to global financial transactions.
The value proposition of USDC hinges on its utility, evident in various real-use cases accessible to everyday users:
Hedging against Inflation and Volatility
USDC provides a refuge for individuals in countries facing high inflation rates or currencies performing poorly against the dollar. Converting funds into USDC helps maintain their value, offering stability amid market uncertainty for cryptocurrency investors.
Remittances
Facilitating cross-border payments without the need for traditional banking or remittance services, USDC allows users to send money abroad quickly and efficiently.
Crowdfunding
Whether supporting a nonprofit organization or a startup, USDC serves as an efficient and transparent means of donations. Its stability ensures that the value of contributions remains consistent over time.
USD Pricing
For online marketplaces accepting cryptocurrencies, pricing items in USDC simplifies transactions, eliminating the need for complex conversions. This applies not only to purchases with USDC but also to other cryptocurrencies on exchanges and forward-thinking e-commerce platforms.
Blockchain Compatibility
USDC’s compatibility with various blockchains enhances its integration with payment systems and applications spanning multiple blockchain networks.
In essence, the value of USDC, reflected in its substantial market cap, lies in its practical applications across diverse scenarios, making it a versatile and stable asset within the cryptocurrency landscape.
Comparing USDC and USDT: Highlighting Key Differences.
USDC and USDT share a foundational concept and functionality— they are stablecoins backed by the US dollar in a 1:1 ratio. However, their divergence becomes apparent in the entities issuing them.
The Difference between USDT and USDC
Source: ZIMPEX
USDT’s initial four-year lead makes it a more popular stablecoin with consistently high trading volumes, USDC has also been progressive. Notably, USDC has expanded its presence on numerous blockchains, aligning with USDT’s accessibility.
Perceived transparency is another differentiator, with some asserting that USDC exhibits greater transparency due to regular reviews of its reserves by the US Securities and Exchange Commission (SEC).
Navigating USDC Transactions on Noones
With USDC featured for trading on noonesl, users can leverage its benefits by seamlessly buying and selling USDC on the platform. The process is straightforward:
Account Creation and Login
Create or log in to your noones account to access the free noones Wallet. Head to the noones home page.
Browse Available Offers
Choose Buy or Sell based on your preference, select USDC as the cryptocurrency, specify your preferred payment method, amount you wish to buy, and click Find me Offers.
Explore available offers, reviewing details to find one aligning with your needs. Click Buy or Sell and proceed to the individual offer page.
Initiate the Trade
Start the trade, following your partner’s detailed instructions.
For buying USDC, make payment to exact account details provided by your partner, mark the trade as Paid, and await verification and release of USDC from escrow.
If you are selling USDC, wait for your partner’s payment after sharing your receiving account details, verify if you receipt of payment by checking your balance via bank app, and release USDC from escrow upon confirmation.
Trade Completion
Once the trade has been concluded, provide feedback to your trade partner and prepare for future transactions.
Users with BTC, ETH, or USDT in their noones Wallet can conveniently convert them to USDC using the built-in converter accessible through the convert button on the homepage.
This streamlined process ensures a seamless experience for users engaging in USDC transactions on noones, fostering accessibility and convenience within the platform.
Now, you have the flexibility to transfer your funds and capitalize on the advantages offered by each cryptocurrency according to your preferences.