Buy USD Coin

USD Coin (USDC) is a type of cryptocurrency that is backed by the U.S. dollar. Unlike other cryptocurrencies that have volatile prices, USDC is designed to maintain a stable value of one USDC equal to one U.S. dollar.

This makes USDC a stablecoin, a digital currency that aims to provide a reliable and convenient way to store and transfer value using blockchain technology.

How does USD Coin work?

USDC is issued by a private company called Circle.

Circle claims that every USDC in circulation is backed by a corresponding U.S. dollar or other approved assets held in segregated accounts with regulated U.S. financial institutions. These accounts are regularly audited by an independent accounting firm to ensure that the USDC supply matches the reserve assets.

You can buy USDC with fiat currency (such as Australian dollars, Pound Sterling, USD or EUR) or other cryptocurrencies (such as Bitcoin or Ethereum) on various platforms, including CoinJar. You can also sell USDC for fiat currency or other cryptocurrencies on CoinJar.

What are the benefits and risks of USD Coin?

One of the main benefits of USDC is that it seemingly offers low price volatility, meaning that its value does not fluctuate significantly over time. This makes USDC suitable for storing and transferring value without worrying about losing purchasing power due to market fluctuations.

USDC can also be used as a hedge against inflation, as it is pegged to the U.S. dollar, which is considered a relatively stable currency.

This however means that the value won’t rise, it will stay stable. Customers may expect that these coins will always maintain their value with the US Dollar. However, you must always keep in mind that unforeseen events or operational issues could lead to a particular stablecoin failing to maintain its pegged value to its designated asset or currency. Such an occurrence could cause the stablecoin to rapidly fall in value and never recover.

USDC is backed by U.S.-regulated reserve assets. Unlike some other stablecoins that have faced controversies over their reserve management and compliance, USDC provides regular and verifiable reports on its reserves and operations.

However, after successful audits in 2019, 2020 and 2021, there was a failed audit in 2022.

Circle hired Deloitte for the 2023 audit, and the results are here.

Risks

USDC risks include no guarantee of price stability (stablecoins have “unpegged” before).

Value-referenced crypto assets such as USDC present risks distinct from other crypto assets. The mechanism by which a stablecoin seeks to maintain its value is not guaranteed and can present systemic market risk, capital risk, and security risk.

USDC’s reserve assets are held at insured financial institutions but USDC accounts themselves are not insured and thus USDC holders do not have an insured claim to their USDC.

A value-referenced crypto assets such as USDC is not the same as and is riskier than a deposit in a bank or holding cash with a crypto trading platform.

There might be “encumbrances” or things that can affect the smooth transfer or use of the tokens. There is irreversibility of on-chain transactions, which means that, like most transactions, if you send it to the wrong address you won’t get it back.

Also the laws could change in the future around its use. And there are third-party platforms that people use with the coin that Circle has no control over. You can see the risks here.

A lot of these risks are the same for most cryptocurrencies, however. Be sure to do your research on any digital asset that you want to buy.

Why own USD Coin?

A benefit of USDC is that it can be used as a medium of exchange for various purposes, such as buying and selling other cryptocurrencies, paying for goods and services, sending remittances, and accessing decentralised applications (DApps).

USDC can be transferred 24/7 and is faster and cheaper than traditional payment methods, such as bank transfers or credit cards.

USDC can also be integrated with various platforms and protocols that support blockchain technology, such as Visa, which announced that it would allow USDC to settle transactions on its network.

Who started USD Coin and why?

USDC was launched in September 2018 by Centre. The main goal of Centre was to create a global and open standard for fiat-backed stablecoins that could enable interoperability and innovation across the cryptocurrency ecosystem.

Centre aimed to change the global financial landscape by connecting every person, merchant, financial service, and currency worldwide.

Is USD Coin popular and what is it used for?

USD Coin is currently the second-largest stablecoin in the world, after Tether (USDT) in terms of market capitalisation.

Uses of USD Coin

While USDC isn’t ideal as a speculative investment, as its value is stable, it has some uses that make it worth having.

-USD Coin can be used as a bridge currency to trade other cryptocurrencies on various platforms, including CoinJar.

-USD Coin can be used as a payment method for goods and services that accept cryptocurrencies, such as online shopping, gaming, travel, and entertainment. USD Coin can also be used to pay for fees and subscriptions on various platforms and services that support cryptocurrencies.

-USD Coin can be used as a remittance tool to send money across borders and regions, especially to countries with limited access to banking and financial services. All users need is a phone. USD Coin can be faster, cheaper, and more convenient than traditional methods, such as wire transfers, or using banks.

-USD Coin can be used as a gateway to access various DApps that run on blockchain technology, such as gaming platforms.

USD Coin in popular culture

In September 2021, Twitter announced that it would enable users to tip each other with cryptocurrencies, including USD Coin, through a partnership with Stripe, a payment platform.

This made Twitter the first major social media platform to support cryptocurrency tipping, allowing users to reward each other for their content and engagement.

Buy USD Coin: Conclusion

USD Coin is a stablecoin. It is backed by the U.S. dollar and runs on blockchain technology. USD Coin offers low price volatility, high transparency, and wide usability, making it a popular and convenient choice for cryptocurrency users and enthusiasts.

USD Coin is one of the most influential stablecoins in the world, and is experiencing growing adoption and integration in the global financial landscape.

How to buy USD Coin (USDC) on CoinJar?

Want to buy USDC? To buy USD Coin on CoinJar, you need to follow these steps:

-Download the CoinJar app on iOS or Android. You can also use the web version of CoinJar.

-Create an account with CoinJar and verify your ID. This is required to comply with the regulations and laws in your country. You must provide some personal information, such as your name, email, phone number, and address. You must also upload a photo of your ID document, such as a passport or driver’s license.

-The verification process may take a few minutes or hours, depending on the volume of requests.

-Transfer money into your CoinJar account. You can do this in several different ways, so choose the payment method that suits you best. You can use bank transfers, or pay with card.

-Buy USD Coin at the market price or place a custom order.

-CoinJar provides a secure and convenient wallet for storing your USDC and other cryptocurrencies. You can access your wallet from the app or the web.

You can also send and receive USD Coin from other wallets using your CoinJar address or QR code. If you prefer to use a different wallet, you can transfer your USD Coin from CoinJar to any other compatible wallet.

-Welcome to the USD Coin club!