Buy USD Coin

USD Coin, also known as USDC, is a form of stablecoin. It is a cryptocurrency that works similarly to other crypto structures such as Bitcoin and Ether/Ethereum. However, it is designed to be less volatile than other forms of crypto, as it is tied to a fiat currency.

The coin was initially developed by the company behind Circle, a peer-to-peer payment solution, back in 2018. Circle itself had only been around for five years before the launch of USDC and had already achieved significant successes in the digital payments sphere. They decided to create a currency that provided an antidote to the uncertainty and volatility of the more traditional crypto market. This was achieved by attaching the currency's value to the United States Dollar — hence, USD Coin.

Many traders like the volatility offered by cryptocurrency and try to use this to their advantage as they buy and sell crypto on exchanges. However, this does not fulfil the original aim of cryptocurrency: to create a decentralised alternative monetary system that would rival already established forms of currency. Stablecoins can still be traded on exchanges, but they are also more suitable as an alternative form of currency.

USDC can be traded and speculated on, just like other forms of cryptocurrency. For example, users can buy USDC and hold it with the expectation that it will increase in value in the future — but this is never guaranteed, even with a stablecoin.

Due to the relative stability of the USD Coin, users are more likely to adopt this coin as an alternative form of payment. The Visa network now supports the USD Coin, demonstrating the currency's increasing viability as a payment method and its growing reputation in the market.

Traders can also exchange USDC for other forms of currency. They might decide to change USDC to AUD, for instance, to receive the equivalent amount in Australian Dollars. USDC can also be used to exchange for other forms of cryptocurrency, a popular strategy for traders seeking to diversify their crypto portfolio and other investments.

The price of the USDC Coin is tied to the value of the United States Dollar. If the USD goes up or down in value, the USD Coin should follow suit, moving in the same direction and at the same magnitude. As the United States Dollar is one of the world's most commonly accepted and traded currencies, this is intended to add an element of trust and reliability to the USD Coin.

When a trader buys USDC, they must first have access to US Dollars. The trader will send these dollars to their traditional bank account and will be held in reserve. The issuer then uses smart contract technology to send the USDC currency to the buyer, maintaining the decentralised elements of a crypto transaction. The US Dollar reserve is intended to act as a reliable basis for the USDC, further increasing public trust in the stablecoin.