In the fast-changing and often unpredictable world of cryptocurrency, the value of digital assets can fluctuate wildly within minutes. Such volatility can lead to high gains but also brings big risks. In this environment, stablecoins like USD Coin (USDC) have become a must-have.
As a bridge between the worlds of traditional fiat and cryptocurrencies, stablecoins offer the best of both worlds: the quick and borderless nature of digital currencies paired with the stability of government-backed money. This article explores USD Coin in-depth, providing insight into its key features, use cases, and how to buy USDC easily and securely.
What Is USD Coin (USDC)?
USD Coin (USDC) is the 6th-ranked crypto and the 2nd-ranked stablecoin by market cap. It stands out because it’s pegged to the US dollar, meaning one USDC is meant to be equal in value to one US dollar. This is maintained through a reserve of dollars or dollar-equivalent assets held by regulated financial institutions. USDC was launched in September 2018 through a collaboration between Circle and Coinbase under the Centre consortium, which oversees its operations.
Key Features of USDC to Know
USDC boasts several characteristics that make it an attractive digital currency option. Here are some of its key features:
- Stability: Unlike cryptocurrencies like Bitcoin or Ethereum, which are known for their price volatility, USDC offers stability. Its value is pegged to the US dollar, reducing the risk of significant price fluctuations. This makes USDC a safer choice for individuals and businesses looking to avoid the roller coaster ride of typical crypto investments.
- Transparency: One of the pillars of USDC is its commitment to transparency. The reserves backing USDC are regularly audited by independent accounting firms, ensuring that every token is indeed backed by an equivalent amount of dollar-denominated assets. This builds trust among users and investors.
- Security: USDC runs on Ethereum, a blockchain renowned for its robust security features. The integration of blockchain technology not only enhances the security of transactions but also adds layers of encryption and immutability, protecting against fraud and unauthorized alterations.
- Accessibility: Being a digital currency, USDC is incredibly accessible. Anyone with an internet connection can buy, store, or transfer USDC using various crypto exchanges and digital wallets. This accessibility makes it a practical option for cross-border transactions and a financial inclusion tool for unbanked populations.
How Does USDC Work?
The process of creating or redeeming USDC is straightforward and is managed through a regulated protocol. To issue USDC, a user sends US dollars to the bank account of a USDC issuer. The issuer then uses blockchain technology to mint an equivalent amount of USDC, which is sent to the user’s digital wallet. Conversely, when a user wishes to convert their USDC back to US dollars, they send their USDC to the issuer’s wallet. The issuer then ‘burns’ or destroys the equivalent amount of USDC and transfers US dollars back to the user’s bank account. This 1:1 redemption guarantee helps maintain USDC’s stable value.
USDC’s applications are wide-ranging, from serving as a stable trading intermediary in cryptocurrency markets to facilitating low-cost global remittances. It also plays a crucial role in decentralized finance (DeFi), enabling lending, borrowing, and yield-generating activities without the traditional banking sector’s involvement.
How to Buy USDC at Switchere with Credit Card
Switchere offers the best way to buy USD Coin using any credit, prepaid, or debit card issued by VISA, Mastercard, or Maestro. Switchere crypto swaps are characterized by fast speed and maximum efficiency — you are able to purchase crypto at the best exchange rates and without any extra charges.
1. Visit the main website and register at Switchere.
2. Choose the currency pair for exchange as well as a payment method and network and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Buy’ button.
3. Specify your USD Coin wallet address.
4. Enter your card details and click on the ‘Buy’ button.
5. Once you confirm the purchase by entering the 3DS code from your banking app, the amount of purchased USDC will be sent to your provided wallet address accordingly. Usually, Switchere transactions take 5-30 minutes.
6. Congratulations! The transaction is completed, and now you can check your USD Coin wallet.
Conclusion
USD Coin represents a significant advancement in the evolution of digital currency. By combining the stability of traditional fiat currencies with the technological advantages of cryptocurrencies, USDC offers a versatile and reliable financial instrument. Whether it’s facilitating smoother trade and investments, enabling faster remittances, or serving as a building block in the new world of DeFi, USDC is poised to play a pivotal role in the future of finance.