USD Coin Token Review
The cryptocurrency market has been rapidly developing lately, you can make good money on it, but only if you follow a competent and correct approach. Thousands of traders and investors who purchase different types of currencies and tokens make profit on it every day. And among the proposed options, it is worth highlighting a stablecoin called USD Coin or USDC. The issuance of the currency is controlled by the crypto exchange Coinbase together with Circle.
What is USD Coin Token
USD Coin (USDC) is a stablecoin, it has a fixed price which is $ 1 per coin. The token was developed by Center, the platform is a technology project, it is supported by the cryptocurrency exchange Coinbase and Circle.
Due to the fact that the price of a USDC coin is always $ 1, and it is quite safe in terms of cryptocurrency, it can be safely stored in cryptocurrency wallets. This will be the same as a savings account.
The USD Coin token can be stored in different wallets that are ERC-20 compliant. This currency works with a large list of exchanges on which various operations with cryptocurrency are performed. It can be safely used for global trade and for making money transfers. But coins can also be used as savings funds as part of a cryptocurrency portfolio.
The main and unusual characteristic of the USDC token is that the price of a coin is 1 dollar, it never changes. And this is the main distinguishing feature from the high volatility coins – Bitcoin, Ethereum and Dogecoin, they can change significantly in price over a short period.
But it is worth noting that USD Coin is not the only stablecoin that depends on the dollar, there are other similar coins:
- Tether (USDT);
- Binance USD (BUSD);
The USDC token appeared in September 2018. There are about 32.87 billion coins in October 2021.
Users cannot mine USD Coin. New coins are minted when a purchase or conversion of a currency, or an acquisition of USDC, is celebrated. If this happens, a new dollar is added to the USDC bank account.
How to Invest
You can buy USDC coins on the platform that developed the token, namely Coinbase. If the account has 1 USDC or more, then the owner can receive a reward, namely he will earn interest on each USDC. As of June 2020, the annualized interest rate is just under 0.15%.
USD Coin tokens are available for trading on well-known cryptocurrency exchanges:
- Uniswap and others.
The well-known Ethereum blockchain is used for USD Coin. And conducting transactions requires the payment of Ethereum gas fees. And its rate may change in accordance with network congestion.