What are USD coins and why you should invest in them?
USDC is a digital stable coin that is fixed to the US dollar. These types of stable coins emerged into the crypto market in the past few years.
Another popular factor of USDC is its redeemable factor, as it can be exchanged with USD. According to market analytics, USDC has a market capitalization of $20 billion.
Stable coins allow users to manage price volatility. In most cases, this is either fiat currencies or another commodity. With the distributed ledger network in place, stable coins have established themselves as a valuable asset with a reduction in administrative load on the transaction.
Another advantage is reduced transaction charges. This eliminates the need to convert these assets into traditional assets. USDC provides its investors with the benefit of undertaking transactions quickly and conveniently on place like the Bitcoin Revolution trading system. Over the years, it has established a strong market presence which has given investors confidence.
How does the USD coin work?
USDC works on Ethereum technology. This technology is backed by decentralized finance and blockchain technology and allows users to develop multiple ranges of applications and tokens at large. The USDC is a used as digital unit of money and its stability ensures that the price doesn’t fluctuate wildly while transactions are underway.
USDC is also backed by fiat currency in circulation, which means that this stable coin is backed by regulatory authorities and other banking agencies.
USDC can be purchased for your investment through any popular and trustworthy exchange. The USDC stable coin can then be stored in a wallet that is Ethereum compatible. Another important factor is non-involvement of transaction fees involved in converting USDC to the dollar.
Here are some of the benefits available to investors:
- Non-involvement of any traditional bank to transfer money
- Instant and cheap method of money transfer to anyone globally
- Earn rewards for every transaction
- Advantage of DeFi model
Investing in USDC
USDC is a stable investment option. Here are a few key advantages to investors:
- Faster lending capability
- Transactions are cheaper with minimal costs and transparency in operating
- Make payments that are cheap
- Ensure faster transactions
- Payroll management is easy
How is USDC different?
If you are a beginner in the crypto industry, then here are some aspects of USDC that can be beneficial.
It makes your transactions easier
USDC makes all your transactions much easier. Two parties with Ethereum backed wallets can easily transfer funds between them with seconds.
Irrespective of the time zone and distance, USDC wallets make it easy to undertake transactions easily. This wallet-to-wallet transaction is undertaken in minimal time. This is advantageous when compared to wire transfer, which may take more than three days to show the debit in the receiver account.
You enjoy secure transactions
USDC is issued by Circle in partnership with Coinbase. Every transaction undertaken through USDC is subjected to audits. This means two or more reputable companies are coming together to undertake and monitor every USDC transaction.
Instead of holding funds in dollars, USDC makes it a secure way to hold your funds effectively. But as an investor, you need to make sure that your private wallet is always kept safe. Ensure that no one gains access to your private wallet. Unauthorized access to your private wallet will make hackers use your USDC like a PayPal or internet banking account.
You benefit from stable transactions
USDC is a stable coin which ensures for stability in every transaction. There is no impact on market fluctuations and all your cryptos are secured against market volatility.
Is there any risk while investing in USDC?
Obviously, like any other investment model, USDC is not risk-free. USDC is widely accepted by companies for financial transactions. The rate of returns is comparatively higher than other modes of investment.
One prominent risk of USDC is the possibility of your wallets prone to hacking. Investors can avoid this risk by using cold wallets.