USD Coin (USDC) FAQs
What Is USD Coin?
USD Coin is a stablecoin with a fixed value of $1 per coin. It was developed by Centre, a technology project backed by cryptocurrency exchange Coinbase and Fintech company Circle.
Because it’s always worth $1 and is very safe and secure, at least in cryptocurrency terms, holding USDC in a secure cryptocurrency wallet is the closest thing to a traditional savings account in the crypto markets.
It works with many ERC-20 compatible wallets, a long list of cryptocurrency exchanges, and has real-world use in global commerce and money transfers. It could also be useful as a store of value in your crypto portfolio.
USDC’s founding companies have extensive experience in the cryptocurrency world. Coinbase is one of the leading cryptocurrency exchanges. Circle is not only backed by crypto-focused investors such as Bitmain and Blockchain Capital, it also owned crypto-exchange Poloniex between 2018 and 2019. In 2021, Circle announced its intentions of becoming a national digital currency bank.
How to Buy USD Coin (USDC)
Step 1: Open an online account.
The best way to buy USDC is through Coinbase. If you already have an account, you can easily convert USDC or other cryptocurrencies into USDC. Search for USD and choose the buy option. After the USDC is credited to your account, you can transfer the tokens to any Ethereum wallet.
If you don’t already have an account with Binance, creating one is easy. Enter your email, create a password, and you’ll have your very own Binance account. Because of the Securities and Exchange Commission (SEC) Know Your Consumer (KYC) regulations, you’ll need to provide Binance with personal identification information before you can begin trading cryptocurrencies.
You can do the same with any exchange that supports USDC. A list of the best ones can be found below.
Step 2: Buy a wallet (optional).
You shouldn’t store your cryptocurrency –– including your USDC –– on an exchange. Centralized exchanges are large targets for hackers because the exchanges have access to all their investors’ funds. Many exchanges have been hacked in the past, leaving users without their cryptocurrencies.
Instead, you should store your crypto in a dedicated cryptocurrency wallet. Cryptocurrency wallets generate a set of public and private keys that encrypt your cryptocurrency, making it truly yours. Software wallets do this through a computer program, while hardware wallets are physical devices that store your crypto offline.
Step 3: Make your purchase.
You’ll need to fund your account to make purchases. Connecting your bank account on Binance is easy, and you can choose to fund your account via ACH transfer or debit card.
Because USDC is almost always equal to $1, you don’t have to time the market to buy your USD Coins. If you’re lucky, you may be able to snag your USDC at a discount, but don’t expect the price to drop below $0.99.
Best Wallets for USD Coin
Hardware Wallet: Ledger Nano S
Ledger is a trusted hardware wallet brand among many cryptocurrency investors. The company has been selling cryptocurrency wallets since 2014, and their wallets have never been hacked.
The Ledger Nano S is a multicurrency wallet, so you can store all your cryptocurrencies in one place. It’s also an affordable choice for most investors, coming in at just over $50 on Amazon.
Software Wallet: Exodus
Exodus has a dedicated wallet application that’s great for storing your cryptocurrency. You can store Bitcoin, Ethereum, USDC and several other assets on the wallet’s mobile and desktop app. It’s free to download, so the only cost to you will be transaction fees to send your crypto to your wallet on the blockchain.