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USD Coin (USDC) is a stablecoin backed by reserves of cash and short-term U.S. Treasury bonds, ensuring its value corresponds to 1 U.S. dollar. This collateralization is intended to ensure that for every USDC in circulation, there is a corresponding U.S. dollar or equivalent value held in reserve, providing a level of safety and transparency for users. Historically, access to USDC has been limited on major crypto exchanges, but its growing acceptance has improved liquidity and ease of transactions, making it increasingly accessible to users looking to engage more seamlessly in the decentralized finance (DeFi) ecosystem. Learn how to buy USD Coin (USDC) now to begin your crypto trading journey.
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How to Buy USD Coin (USDC)
Here’s a step-by-step guide on how to buy USDC safely and easily.
1. Open an Online Account
To purchase USD Coin, you must first open an account with a cryptocurrency exchange or broker that supports USDC trading. Visit the platform’s website or download the mobile app. Search for the “Sign Up” or “Register” button and click it. You will need to enter your email address and create a password. After setting up your account, verify your identity. This process usually requires submitting personal information and documents, including a government-issued ID and proof of address, in compliance with the Securities and Exchange Commission (SEC) Know Your Consumer (KYC) regulations.
2. Fund Your Account
You can fund your account in various ways depending on the platform. Credit card, bank transfer or existing cryptocurrency wallets are commonly accepted. Many trading platforms allow users to link their bank accounts for direct deposits or wire transfers. Alternatively, users can use credit card or debit card, though this may result in higher fees. Follow the instructions for the payment method you choose. Enter the amount and confirm any transaction fees associated with it.
To make cryptocurrency deposits, please generate a wallet address from your exchange. Copy this address and transfer your funds from your personal crypto wallet. It is essential to verify both the address and the amount prior to confirming the transaction to ensure the security of your funds.
3. Purchase USD Coin
Once you’ve successfully verified and funded your account, you can start buying crypto including USDC. 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.
If you already own crypto, you can buy USDC with Ether tokens on a decentralized exchange (DEX). You’ll need a compatible Ethereum wallet — MetaMask is the best option for Uniswap because it has an easy-to-use Google Chrome extension. After sending your Ether tokens to MetaMask, you can swap them for USDC on Uniswap.org.
What Is USD Coin?
There are several uses for USD Coin. Visa recently announced its plans to settle transactions in USDC on Ethereum’s blockchain, which is huge news for Ethereum’s network becoming more practical.
Today the most common use case for USDC is to hedge against volatility in the crypto market without leaving the crypto ecosystem. Stablecoins can also interact with decentralized finance (DeFi) programs and earn interest. Since USDC uses Ethereum’s network, the stablecoin can be used on decentralized exchanges like Uniswap, yearn.finance and SushiSwap – something fiat cannot do.
These decentralized applications (dApps) allow investors to earn interest, take out loans and even settle insurance claims directly on the blockchain. Being able to do so with a cryptocurrency pegged to the dollar eliminates the risk associated with volatile cryptocurrencies, allowing risk-tolerant investors to stake USDC for interest rates north of 10%.
Brief History of USD Coin
USDC was created by Centre Consortium, a joint venture between Coinbase and Circle – aimed at increasing mainstream adoption of fiat stablecoins. USDC operates by minting new coins when a user buys them with the USD from an exchange like Coinbase. Centre Consortium then puts this cash into its reserve, ensuring that $1 of USDC can be exchanged for $1 at any time.
Created in 2018, USDC’s market capitalization has risen from around $200 million to more than $34 billion as of September 2024. While the price of USDC doesn’t fluctuate more than a percentage point in either direction, the number of USDC has increased significantly.
USD Coin is U.S-based and completely audited by a third party. Unlike Tether (USDT), there’s no question that USDC has each and every token backed by $1 of collateral in its reserves. It should be noted that this collateral does not have to be in the form of US Dollars, certain other types of debt are deemed valid by regulators. With increased skepticism about Tether’s USDT backing, USDC may be a more secure alternative.
Where to Buy USD Coin (USDC)
USDC is available for purchase on well-known trading platforms including Coinbase, Binance, Kraken, Robinhood, Crypto.com and Gemini, among others.
earn free crypto
securely through Coinbase’s
website
Coinbase is one of the largest cryptocurrency exchanges by trading volume, serving customers in over 100 countries and supporting hundreds of crypto coins and tokens. The platform features a user-friendly interface with options like staking and earning, as well as a “learn and earn” feature where users watch educational videos and answer questions to earn crypto assets. Trading fees can be high on the basic platform, but users can access the advanced platform for free.
Best For
- Coinbase is best for beginners because of its user-friendly interface.
- The availability of over 30 products caters to the needs of traders of every mindset.
- Coinbase offers a learn and earn program.
- You can earn coins and tokens by watching tutorials and answering crypto-related questions. This platform lets you earn crypto just by spending your fiat via a debit card as you normally would when you use Coinbase’s Visa debit card.
- Offer a wide variety of altcoins.
- Ideal for new investors.
- Complicated fee structure
- Does not support margin trading (only 3x on Pro version)
get started
securely through Binance’s
website
Binance is the largest cryptocurrency exchange in the world by trading volume. In fact, it tops the ranks of cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely in 2nd and 3rd places, respectively.
Previously based in Malta, the Binance Group is now based in the Cayman Islands. Binance has several locations and entities registered across the globe. In the United States, it’s known as Binance.US. The exchange in the U.S. uses the same cutting-edge technology and trading services as its global counterparts with the difference being U.S. regulatory compliance. It is operated by San Francisco-based BAM Trading Services.
Binance.US ranks 9th on CoinMarketCap’s list of the top 10 exchanges based on metrics like 24-hour trading volume, exchange score and average liquidity. Binance could be a good platform for you to invest in cryptocurrencies if you are a U.S.-based trader who trades frequently, doesn’t intend to pay high trading fees and needs access to a large number of cryptocurrencies.
Best For
- US Citizens
- Frequent day traders
- Users interested in Binance Smart Chain (BSC) and Binance Coin (BNB)
- Low trading fees
- Easy-to-use platform
- Wide selection of altcoins — it offers 51 cryptocurrencies apart from Bitcoin (BTC)
- Good customer service
- High liquidity because of large trading volumes
- Only residents of 43 states in the U.S. can trade on Binance.US. You cannot trade on this platform in New York, Connecticut, Hawaii, Texas, Vermont, Idaho and Louisiana
- Despite the wide selection of altcoins, the number of tokens offered on the U.S. platform is not comparable to the hundreds of choices available on the Binance global platform
- There is no option for telephonic customer support
get started
securely through crypto.com’s
website
Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.
Best For
- Traders who want access to a secure, low-cost cryptocurrency exchange
- Passive investors who want to earn interest on their balance without frequent trading
- Mobile investors who prefer to handle all their crypto needs via their phone or tablet
- Low fees
- High security
- One-stop shop for all your crypto needs (wallet, trading, spending, and more)
- Lots of ways to earn interest, rewards, and rebates
- Low privacy
- Customer service response time could be improved
get started
securely through Robinhood’s
website
Robinhood is the broker for traders who want a simple, easy-to-understand layout without all the bells and whistles other brokers offer. Though its trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s intuitive and streamlined platform. On the other hand, more advanced traders might be frustrated by Robinhood’s lack of technical analysis tools, a feature that’s now nearly universal across other platforms.
Best For
- Fee-free trading
- Beginner crypto investors
- Doge day traders
- Commision-free trading
- Access to Dogecoin
- Limited altcoin selection
- No wallet capabilities
Get Started
securely through Kraken’s
website
Kraken is one of the oldest cryptocurrency platforms in the crypto market, catering to both new and expert cryptocurrency traders. By supporting over 240 cryptocurrencies, including altcoins and meme coins, Kraken gives investors more choices along with deep liquidity. The platform ranks No. 1 in Europe in large order executions with over 35% market share. In February, the platform launched an institutional offering to provide solutions like spot and over-the-counter (OTC) trading, custody and staking.
Best For
- Traders looking for advanced features and analytics
- Investors seeking access to a wide range of cryptocurrencies
- Provides access to a broad range of major cryptocurrencies and altcoins
- Customizable order types, charts and leveraged futures trading
- Strong commitment to security and regulatory compliance
- Trusted by over 9 million clients in 190 countries
- Not available in all U.S. states — no services to New York and Washington residents
- You pay higher fees if you are not on Kraken Pro
- Multiple apps may be confusing to beginners
- Staking and rewards not available in the U.S.
get started
securely through Gemini Crypto’s
website
Gemini Trust Company LLC is a cryptocurrency exchange that supports trading in over 70 assets. While its selection of cryptocurrencies is limited compared to some competitors, Gemini excels in account security and regulatory compliance. The platform offers additional features such as a cryptocurrency rewards credit card, a built-in hot wallet, and the ability to pay crypto at various retailers. These tools and services make Gemini a robust choice for both new and experienced traders seeking a secure trading environment.
Best For
- Beginner-friendly platform offering handsome educational resources.
- Strong security features, including staking options.
- Gemini operates as a fully regulated cryptocurrency exchange.
- It accepts clients from the U.S.
- The platform employs stringent cybersecurity measures to protect users’ funds.
- Gemini is well-capitalized and adheres to banking regulations.
- Gemini is available in 60 countries, including the United States, the United Kingdom, Canada, Australia, Hong Kong, Singapore and South Korea.
- It offers fewer crypto assets to trade, with just over 70 available.
How to Store USDC Safely
Now that you know how to buy USDC you need to learn how to store it safely. You should avoid storing your cryptocurrency, including USDC, on centralized exchanges due to the risk of hacking. Instead, it’s safer to use dedicated cryptocurrency wallets, which provide public and private keys to secure your funds. Software wallets operate through a program, while hardware wallets are physical devices that keep your crypto offline. Here are a few of the best crypto wallets on the market.
- Hardware Wallet: Ledger Nano S
buy now
securely through Ledger Hardware Wallet’s
website
Launched in 2014, Ledger has transformed into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for companies and individuals. Born in Paris, the company has since expanded to more than 130 employees in France and San Francisco.
With 1,500,000 Ledger wallets already sold in 165 countries, the company aims at securing the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates to a secure chip for its line of wallets. So far, Ledger takes pride in being the only market player to provide this technology.
Best For
- ERC-20 tokens
- All experience levels
- Easy to set up and use
- Supports more than 1,500 different digital assets
- Tamper proof
- Portable
- Long-lasting battery
- Bluetooth connectivity features
- Can be quite pricey
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.
- Software Wallet: Coinbase Wallet
Coinbase 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 app. Coinbase Wallet is free to download, so the only cost to you will be transaction fees to send your crypto to your wallet on the blockchain.
Trade, Sell or Convert Your USDC
Trading and converting your USDC is much easier than onboarding actual U.S dollars into the cryptocurrency market. Since USDC operates on Ethereum, you can swap between USDC and any Ethereum-based token on decentralized exchanges like Uniswap or Sushiswap. If you use a DEX, beware of high gas fees –– due to high demand for network space.
You also can use USDC on exchanges to easily convert to other cryptocurrencies without needing to access funds from your bank account. This is a better option for most retail investors, as there are much lower fees, however, USDT is a much more common in crypto/stablecoin trading pairs.
Current Crypto Prices
To get an idea of where the cryptocurrency market is headed, watch the price movements of major cryptos like Bitcoin and Ethereum.
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Is USDC Better than USD?
For most cryptocurrency traders, it makes sense to use USDC instead of USD. It’s much easier to transfer to decentralized finance protocols, as it’s tokenized on the same blockchain as Ethereum.
There are plenty of opportunities to earn interest with USDC that don’t exist in traditional markets, as blockchain innovations cut out the banks that capitalize on your assets. So yes, USDC is better than USD in almost every way.
Is It Worth It to Buy USD Coin?
Investing in USD Coin (USDC) can be worth it for those seeking to engage in the cryptocurrency ecosystem while maintaining a stable value linked to the US dollar. As a stablecoin, USDC aims to provide the benefits of cryptocurrency transactions—such as fast transfers and lower fees—without the high volatility associated with other cryptocurrencies. This stability makes it attractive for individuals looking to protect their capital amidst market fluctuations. However, potential investors should conduct thorough research and consider the risks associated with digital currencies, including regulatory changes and technological challenges, before making a decision.
Frequently Asked Questions
Can I buy USDC on Robinhood?
Yes, you can buy USDC (USD Coin) on Robinhood.
Answer Link
Can you buy USDC on Coinbase?
Yes, you can buy USDC (USD Coin) on Coinbase.
Answer Link
Is it safe to buy USDC?
Buying USDC (USD Coin) is generally considered safe for those looking to invest in a stablecoin, as it is pegged to the US dollar and aims to maintain a 1:1 value with the dollar. The safety of USDC is bolstered by regular audits conducted by third-party firms, further instilling confidence in its stability. However, like all cryptocurrencies, it is not entirely risk-free. Conduct thorough research before diving in.
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The post How to Buy USD Coin (USDC) by Ryan McNamara appeared first on Benzinga. Visit Benzinga to get more great content like this.