The Beginner's Guide to USD Coin (USDC) Part 2

In our previous article, we explored "What is USDC?" and laid the foundation for understanding this popular stablecoin. Today, we delve further into USDC, addressing key aspects such as its comparison with USDT, how to store and use it, its safety, and more. This comprehensive guide will help you navigate the USDC landscape effectively.

USDC vs USDT

When it comes to stablecoins, USDC (USD Coin) and USDT (Tether) are two of the most prominent players. Both aim to provide stability in the volatile world of cryptocurrencies by pegging their value to the US dollar. However, there are notable differences:

• Transparency and Regulation: USDC is issued by Circle and Coinbase under the CENTRE Consortium, known for its transparency and regulatory compliance. Monthly audits by Grant Thornton LLP ensure that each USDC is backed by a corresponding US dollar held in reserve. In contrast, USDT has faced criticism for its opaque reserves and lack of frequent audits.

• Use Cases: USDC is widely used for trading, payments, and DeFi applications, thanks to its regulatory compliance and transparency. USDT, on the other hand, remains the most widely traded stablecoin due to its early market entry and liquidity.

Storing USDC: The USDC Wallet

To store USDC, you'll need a compatible wallet. Popular wallets include:

• Coinbase Wallet: Ideal for those already using Coinbase, this wallet offers seamless integration and robust security features.

• MetaMask: A widely used Ethereum wallet that supports USDC and various other ERC20 tokens.

• Ledger Nano S/X: For those seeking enhanced security, hardware wallets like Ledger Nano S/X provide offline storage, protecting your USDC from online threats.

Is USDC Safe?

Safety is paramount when dealing with cryptocurrencies. USDC is considered one of the safest stablecoins due to its transparency, regulatory compliance, and frequent audits. Circle and Coinbase ensure that each USDC is fully backed by US dollars, instilling confidence in its stability and value.

How to Buy USDC

Buying USDC is straightforward and can be done on various platforms:

• Coinbase: As a co-founder of USDC, Coinbase offers an easy and secure way to buy USDC. Simply create an account, link your bank account or credit card, and purchase USDC directly. Coinbase also charges zero fees for buying, transferring USDCs, and bridging it to other networks.

• Binance: Another popular exchange, Binance, allows users to trade USDC against numerous cryptocurrencies.

• DeFi Platforms: For decentralized trading, platforms like Uniswap and Sushiswap offer liquidity pools where you can swap other cryptocurrencies for USDC.

Conclusion

USDC stands out as a reliable and transparent stablecoin in the ever-evolving cryptocurrency landscape. Whether you’re comparing it to USDT, seeking a secure wallet, or understanding its ERC20 foundation, USDC offers a robust solution for those looking to maintain stability in their digital assets. That's why Jarsy chooses USDC as our settlement currency.