USD Coin Price Today

What Is USD Coin (USDC)?

USD Coin (USDC) is a cryptocurrency that is backed by U.S. dollars or equivalent assets (e.g., U.S. Treasury securities) and that is designed to maintain a constant value of US $1.

USDC is one of a broader category of cryptocurrencies called stablecoins that use a variety of mechanisms to maintain a more stable price when compared to other cryptocurrencies such as BTC, ETH, and BNB, which can fluctuate wildly in some cases.

Jointly created by Circle and Coinbase, USDC is built on the Ethereum Request for Comment 20 (ERC-20) token standard and is interoperable with all Ethereum-based networks, blockchains, and applications.

How Does USD Coin Work?

New USDC is minted when individuals and businesses deposit United States government-backed currency (fiat currency) into their Circle account. Circle records the transaction on the blockchain and exchanges those U.S. dollars for the equivalent USDC.

Circle then maintains a 1:1 ratio of all USDC on the market as cash reserves and short-term U.S. Treasury Certificates. According to this model, if you own USDC, you can send any quantity of it to Circle at any time. They will burn your tokens and provide you with the equivalent fiat currency.

This exchange-and-burn mechanism keeps the supply and reserves at a constant 1:1 ratio.

History of USD Coin

The USDC stablecoin was created in 2018 by CENTRE, an organization founded by crypto exchange Coinbase and financial technology firm Circle.

It was originally only available on the Ethereum blockchain, though it can now be found on several other chains (including Algorand, Solana, Stellar, and TRON).

According to Circle, USDC’s accounts are established at regulated U.S. financial institutions and are audited every month by U.S. accounting firm Grant Thornton LLP.

How To Buy USD Coin

To buy USDC, first, create an account on a crypto platform, like Binance.US, that offers the USDC stablecoin.

In addition to offering USDC, look for a platform that gives you the ability to buy, sell, and trade other cryptocurrencies, minimizes the fees associated with each transaction, and provides access to tools and information that can help you make the right choices.

Second, fund your account with fiat currency (e.g., U.S. dollars) through any of the options provided by the platform, such as:

• Debit or credit card
• Link to an existing bank account
• Bank or wire transfer
• Some other established payment service, such as Apple Pay (not available on all platforms)

Third, log in to your account and specify how much USDC you want to buy and when you want to buy it. Fourth, once the USDC arrives in your account, store it in a crypto wallet.

Crypto wallets come in two standard configurations: cold and hot. A cold wallet is an offline storage space like an external hard drive. A hot wallet is an online storage space most often provided by the crypto platform through which you buy, sell, and trade.

Cold wallets are the most secure but can be difficult to access and are at a higher risk of being lost or corrupted. Hot wallets are also secure, are immediately available, and hold a very low risk of being lost or corrupted.

How To Sell USD Coin

Selling USDC starts with opening and funding an account on an established crypto platform, such as Binance.US, and either buying the stablecoin or transferring it from another ecosystem.

Once you’ve done that, selling USDC is as effortless as buying it: Specify the amount you want to sell and when you want to sell it.

Some common options for sell orders include:

• A market order at the current market price
• A limit order at a future price you indicate
• A stop-limit order (sometimes known as a stop-loss), where you can set a stop price to trigger the sale at market price

Once the sell order is verified, the platform through which you initiated the sale will deposit the equivalent funds into your account. From there, you can withdraw the fiat currency or use it to buy other cryptocurrencies.

How To Trade USD Coin

Trading USDC follows much the same process as buying and selling it. Open an account, verify your identity, fund the account, and buy or transfer USDC into that account.

Once you have USDC in your account, use the information and tools the platform provides to initiate your trades.

Keep in mind: although USDC is considered relatively safe and stable, the cryptocurrency market changes very quickly, and the value of USDC can fluctuate due to market forces and other factors.

Before initiating any trade orders, research and analyze the market to develop a strategy to guide your decision-making process.

Resources

Official USD Coin Website

USD Coin Whitepaper

Download the Binance.US app to trade on the go: iOS | Android

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Risk warning: Buying, selling, and holding cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in a significant loss. Binance.US is not responsible for any loss that you may incur from price fluctuations when you buy, sell, or hold cryptocurrencies. Please refer to our Terms of Use for more information.