In recent years, stablecoins have emerged as popular and adaptable kinds of cryptocurrency, with their price tied to a reserve asset (typically the US dollar). As its name suggests, USD Coin (USDC) is a cryptocurrency that is tied to the U.S. dollar.
Circle originally introduced USDC on May 15th, 2018, and the coin was released in September of the same year. USDC may always be redeemed for US dollars one-for-one. According to Circle's official website, there are 46 billion USDC in circulation at the time of this writing.
Ethereum is a prominent programmable blockchain on which USDC was developed and launched. The idea behind USDC was to develop a digital currency whose value would not fluctuate significantly during a transaction.
At least equivalent in value to the USDC in circulation, it is anchored by dollar-denominated assets that are deposited with US-regulated financial institutions in separate segregated accounts. Traders can purchase USDC on Coinbase and save it in an Ethereum-compatible wallet.
Transferring a US dollar to USDC incurs no costs. Through the co-founding of the CENTRE Consortium, Coinbase and Circle were able to get their hands on USDC.
USDC, for example, may be used in a variety of different ways, including.
- Sending money cheaply and quickly to anywhere in the world without needing a bank account first is a significant improvement over conventional payment methods such as wire transfer, which are extremely slow and expensive.
- Redeem rewards from holding USDC in a crypto account.
- Earning generous yields when users lend their USDC to decentralized finance (DeFi) applications and protocols.
USDC can often be described as a programmable dollar. The ability to program a currency opens a slew of new possibilities for businesses and consumers.
For example, programmers can create accounts for storing money with just a single line of code; they can make lending faster, cheaper, and more transparent; they can make payments, including payroll, faster and cheaper, and they can make donations to charities that are both transparent and stable.
The United States Dollar (USD) coinage is not merely created at will. A single US dollar backs every USDC token, Circle assures.
To convert USD to USDC, follow these three steps.
- The token issuer's bank account receives a USD payment from a user.
- The issuer then utilizes the USDC proprietary smart contract to generate USDC.
- The user receives their newly minted USDC coins, and the substituted fiat currency is kept in reserve.
Where minting USDC is concerned, the procedure of redeeming USDC for USD is straightforward.
- USDC tokens are exchanged for comparable amounts of USD by a user who submits a request to the USDC issuer.
- The USDC smart contract requests that the tokens be exchanged for USD and an equal number of tokens be removed from circulation.
- The user's bank account receives the desired amount of USD from the issuer's reserves. After subtracting all fees, the user gets a net amount equal to the amount in USDC tokens.
The designers of the USD Coin, in contrast to the most popular stablecoin Tether (USDT), are required to give complete transparency and collaborate with a variety of financial institutions to maintain full reserves of the comparable fiat currency.
To purchase USD Coin, you must follow these steps:
- Evaluate and choose a USD Coin Exchange Trading Platform that suits your unique objectives and needs.
- Connect your payment option to the exchange and transfer funds.
- Analyze the price on USD Coin and wait for the opportune moment to enter the market.
- Perform a buy order on USD Coin
- Store your funds in a safe, secure wallet.
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1. Choose a USD Coin Exchange Platform
While the cryptocurrency market has reached over $1.6 trillion in 2023, the market is extremely lightly regulated, which is a concern for many users because the safety of their funds is not always guaranteed.
New cryptocurrency exchange trading platforms are emerging at the same rate that crypto coins are being released, and several are constant victims of cyberattacks by malicious internet entities. When users choose a cryptocurrency trading platform, there are several red flags that they must look out for, in addition to evaluating the crypto exchange according to their unique objectives and needs.
Using a crypto exchange, traders can easily trade fiat cash for digital currencies and the other way around. When it comes to trading and using cryptocurrencies, an exchange is essential. Exchanges act as an intermediary between buyers and sellers, or it provides a platform for P2P exchanges.
Users who wish to directly convert one cryptocurrency to another, such as from Bitcoin to Ethereum, may utilize an exchange that has a big enough ‘order book' to provide ‘currency pairings.'
Crypto lending, crypto borrowing, and NFT art auctions are all new services that exchanges have recently begun offering to encourage more people to utilize crypto as a means of exchanging value.
Common mistakes that users make when they evaluate and choose an exchange include the following.
- They do not conduct thorough research and they choose an exchange that is not suited to their objectives or needs
- They fall for a scam because they do not validate the exchange
- They deposit all their funds into the native wallet of the exchange, which makes it vulnerable to hacking
- They do not ensure that the security features of the exchange are adequate
- Users do not educate themselves before they start trading
2. Choose a Payment Option Buying USD Coin
Users must ensure that they thoroughly research crypto exchanges to choose a reputable and safe platform. Due to cyber assaults, many exchanges have already collapsed, and others have never recovered their reputation.
Pump-and-dump scams are prevalent in the cryptocurrency space. However, crypto exchanges are stepping up to prevent this kind of scam. Exchanges, aided by tokens, have the burden of stopping this kind of fraud.
Buying cryptocurrency is done in a variety of ways, depending on the platform that is being used. Depending on the exchange, the platform could allow bank transfers for making deposits while others allow PayPal and credit/debit cards, while others just accept cryptocurrencies.
Where crypto-only exchanges are concerned, if the user does not already have any cryptocurrencies, they need to join an exchange that takes fiat money to get access to the market. The time it takes to make a transaction is also an essential consideration. Some systems can handle transactions in a matter of minutes, while others might take many days or even weeks to complete.
Investors in cryptocurrencies know that Bitcoin and Ethereum are only two of 17,000 other cryptocurrencies. Many various exchanges have a wide range of supported cryptocurrencies, which means that traders need to look towards larger exchanges that list many options.
Stablecoins are used by traders to protect themselves against the volatility that is frequent in the crypto market. This is another example of a cryptocurrency with USD backing that is collateralized by a network of banks: TrueUSD.
To provide token holders' legal protection and direct banking, the firm employs custodial accounts, which are accounts held by a third party. These accounts are also audited regularly and provide full legal protection.
TrueUSD is a stable currency since it is backed by the US dollar, which is widely accepted on digital exchanges. Since the SEC has subpoenaed Tether, the current USD stable currency, a new alternative is urgently required.
Users are always urged to select a crypto exchange that not only supports a range of coins but also offers enough liquidity on most pairings. When users consider an exchange, they should consider the exchange rates, 24-hour trading volume, and overall market capitalization of the exchange.
Common mistakes that users make during this step are.
- Not researching the payment processing and transaction fees.
- When traders fail to research the basic operations of the exchange and the payment methods that are provided.
- Falling for scams that pose as legitimate exchanges.
- When users place all their funds in an online wallet or the exchange’s native wallet and these wallets are compromised by a cyberattack because of their vulnerability.
3. Follow the USD Coin Prices and Analyse them
It may seem to be a difficult task, but technical analysis in the cryptocurrency market refers to the study of historical market data to predict future price changes. Price analysis allows traders and investors to make more informed projections regarding the future value of a cryptocurrency.
This can be done by applying some of the following technical indicators.
- Candlestick patterns
- Moving Averages (MA)
- Trend Lines
- Support and Resistance levels
1. Candlestick patterns: There are many types of charts, but candlestick charts are among the most useful. Visually depicting the number of price movements in various hues (often green for positive candles and red for negative candles), candlestick charts originated in Japan over a century ago.
Candlesticks tend to show the following information.
- Cost-free
- The Higher Cost
- Lower cost
- Closing price
Candlestick patterns may also be identified using these components, which give a wealth of information in an easy-to-read and simple fashion. Bullish and bearish engulfing patterns are some of the more basic candlestick patterns, although there are a plethora of others.
2. Moving Averages: Lagging indicators such as moving averages are popular because of their ease of use and ability to smooth out price fluctuations, allowing investors to see an asset's long-term average price more clearly.
Moving averages may be divided into two main categories.
- Moving Averages based on simple formulas
- Exponential Moving Averages
There is a difference between using simple moving averages and using exponential moving averages.
3. Trend Lines: As the name indicates, trend lines are used to detect a trend. They are a fundamental part of any technical analysis. Any cryptocurrency trader may use candlestick patterns to determine if the price is trending upwards or downwards and then alter their trading strategy appropriately.
4. Support and Resistance: In technical analysis, one of the simplest and most successful techniques of determining where a digital asset's price is predicted to stabilize or decline is to determine support and resistance points.
There is a hypothesis that demand for a digital asset grows as its price lowers, at least in principle, in the cryptocurrency market. As a result of this fundamental premise, there is a wide range of support as well as opposition. It is challenging to breakthrough price levels since the market typically has a desire to purchase or sell at a certain price.
Common mistakes that traders make when they analyze prices on USD Coin include.
- Not understanding how to read price charts to identify patterns
- Following trends that might end soon
- Not using fundamental and technical analysis in combination
- Only using a single technical indicator and not comparing different metrics or data
4. Perform a USD Coin Order
Using buy and sell orders on an exchange is the standard procedure for trading cryptocurrencies. When traders want to buy or sell USDC, they can use these orders.
A variety of order kinds are available on exchanges, each with a unique purpose. Instant and market orders provide a fast and easy method to set the price in fiat or crypto; limit orders allow traders to enter specific selling and purchasing criteria, and stop orders protect investment losses.
- Instant orders – If a trader wants to purchase $100 worth USDC quickly and simply despite the price, they settle for an instant order. Once the order is submitted by the trader, the exchange’s order book will search for suitable sellers and make the trade, despite the number of coins offered, and the exchange will match the trader with sellers until their $100 is spent.
- Market orders work in the opposite way to instant orders. Instead of traders specifying the amount that they are willing to spend, traders set the amount of crypto they wish to purchase or sell while setting aside the amount the trader is willing to pay or receive.
- Limit orders allow users more control over the amount of crypto that the trader will receive for their initial input and vice versa.
- Stop orders allow users to set their selling price either above or below the current market price. These orders form part of effective risk management, especially when the market conditions are extremely volatile and traders want to protect their investment.
- Trailing stop orders are like stop orders, but they tend to trail or race the price direction of a cryptocurrency, adjusting the trader’s order accordingly. The trailing stop will automatically adjust the trader’s position if the crypto price changes.
The common mistakes that traders make when they trade USD Coin include the following.
- Not knowing the basics and not using a demo account before trading in a live environment where capital is at risk.
- Falling for the hype instead of conducting thorough research on price analysis.
- Trading without a strategy.
- Failing to read USD Coin charts.
- Investing large sums into only one type of asset.
- Using leverage incorrectly or abusing it.
- Not using risk management tools such as stop-loss and take-profits
5. Store USD Coin Safely
A cryptocurrency wallet or a digital wallet app is a software application that enables cryptocurrency users to securely store and access their digital assets. While many exchanges offer or recommend crypto wallets, customers must have a wallet address to purchase or trade USD Coin or other cryptocurrencies.
There are different types of USD Coin wallets, namely.
- Hardware Wallets are USB devices that store funds offline.
- Mobile wallets can be downloaded and installed on mobile devices that use iOS or Android.
- Desktop wallets that run on computers.
- Paper wallets that are QR codes printed on physical paper.
- Web-based wallets are an extension to a browser.
- Hot/Cold wallets refer to Online/Offline wallets.
Common mistakes for this step include.
- Only using a hot or online wallet
- When users do not keep their private key safe or they forget their recovery phrase.
- Forgetting the seed phrase.
- When users keep large amounts of funds in an online wallet, or they trust an exchange to take care of funds.
- Using unverified wallets or wallets from unknown sources.
- Not using enough security features to secure the wallet.
Hardware and offline wallets are the best options overall, while hot and other wallets are best for small transactions and payments.
How to understand which USD Coin Storage is safer
Digital wallets for USD Coin and many other digital coins and tokens are available in several forms, each with its own set of advantages and disadvantages in terms of trading convenience and security. However, regardless of the format, security starts with the user. Users must maintain the security of the passwords that provide them access to their digital wallets.
In terms of the types of USD Coin wallets, users can distinguish between the following.
- Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
- Hot Wallets are online applications that require an internet connection.
- Physical wallets are physical devices that can resemble external hard drives or USB devices where crypto funds are kept in cold storage.
- Web wallets are web browser ad-on wallets.
- Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
- Paper wallets which is a piece of paper with a code or QR code on them. To access the assets, the user enters the key or scans the code to access their account.
The Best USD Coin Wallets are:
- Alpha Wallet
- ImToken
- Exodus Wallet
- Cobo Wallet
- Coinbase Wallet
1. Alpha Wallet: AlphaWallet is a simple-to-use, secure Ethereum wallet that supports ERC20, ERC721, ERC1155, and ERC875 natively. AlphaWallet, being a multi-chain Ethereum wallet, is compatible with all prominent Ethereum-based networks.
AlphaWallet makes tokens “smart” by using the TokenScript framework. SmartTokens can connect with and interact with several decentralized application (DApp) smart contracts. The token issuers may choose which activities to emphasize, providing traders with an interface to utilize their token.
2. ImToken: ConsenLabs introduced the ImToken wallet in May 2016. And during the last several years, ImToken has grown to become a very trusted and prominent crypto wallet, particularly among Ethereum and eth-based token holders.
3. Exodus Wallet: The multi-currency wallet is compatible with over a hundred coins. Initially exclusively accessible on PC, the Exodus mobile app is now available on Android and iOS devices.
Users can download Exodus Wallet for free and do not need to register or provide any personal information. Exodus has a simple, one-click interface, private keys, hardware wallet compatibility, a 24/7 customer support staff, and convenient transaction data storage.
4. Cobo Wallet: Cobo is the world's first digital currency wallet, pioneering Proof of Stake (PoS) and Masternode pooling to allow users to securely store, utilize, and invest in digital currencies all in one app. Cobo Wallet's security features are built on Hardware Security Modules that have been proved to withstand unauthorized access or any other kind of breach.
5. Coinbase Wallet: It is simple to use Coinbase wallets and offers the most secure utility of any other wallet, making it one of the best cryptocurrency wallets. The wallet has been well tested and is an excellent partner for Coinbase customers. It is suitable for both specialists and novices in the field of digital money.
What are the ways of buying USD Coin?
You can purchase USD Coin in the following ways:
- Debit Cards
- Bank Account
- Credit Card
- P2P Exchanges
- Cash
- Low Fees
- Metamask
1. Buying USD Coin with Debit Cards: When users purchase USD Coin with a debit card, they use the card that is linked directly to their bank account, given that their card type supports online purchases.
Advantages of using a debit card to purchase USD Coin include.
- Fast and secure transactions
- Instant transaction execution
- Assistance in retrieving funds if anything goes wrong
Disadvantages of using a debit card to purchase USD Coin include.
- High transaction and processing fees
- Security risk if the information is saved online
In terms of legal issues, exchanges that accept payment in debit cards will require that users complete a KYC procedure as part of anti-money laundering procedures.
Buying with a debit card is safe if you use a legitimate cryptocurrency exchange that uses SSL technology to encrypt client data and information.
2. Buying USD Coin with Bank Accounts: When users purchase USD Coin with a bank account, it involves a bank transfer from their bank account into their exchange trading account or broker account. Once funded, they can use the trading account to purchase USD Coin.
This will only work with exchanges that accept fiat currency. Exchanges that are crypto-to-crypto do not accept fiat deposits. The user must first convert their fiat to crypto, for instance, USDT, which can then be used to purchase USD Coin.
The benefits of buying USD Coin with a bank account involve the fact that bank transfers are some of the most secure ways to transfer funds. With a bank transfer, there are no chargebacks, and the processing fees are lower than with credit/debit cards.
The disadvantages of buying USD Coin with a bank account are.
- Transaction processing time is longer than other payment options, between 24 hours up to several days.
- Bank Accounts are not an anonymous way to purchase USD Coin and transactions can be traced.
Where legal issues may arise regarding bank account purchases of USD Coin, users must ensure that they have a verified trading account, either with an exchange or a broker. This may involve completing the KYC process as part of AML policies.
Bank Accounts are one of the safest options to purchase USD Coin alongside credit or debit cards, given that the user makes use of a legitimate and verified exchange and regulated broker.
The cryptocurrency market is a financial market that is not regulated because of its decentralized nature. This means that traders, crypto enthusiasts, and investors may struggle to find the necessary support that they need if they run into issues with an exchange or a broker.
3. Buying USD Coin with Credit Cards: This process is the same as buying USD Coin with a debit card. The user must provide their credit card details to purchase USD Coin through an exchange that allows for fiat payments.
The advantage of using a credit card to purchase USD Coin is that transactions are carried out faster. The disadvantage of using credit cards to purchase USD Coin relate to high transaction and processing fees, strict KYC policies, and security issues with a credit card and personal information that can be stolen.
The legal issue involved with buying USD Coin with a credit card is that hackers can access the credit card information of the user and it can lead to a significant loss.
Credit cards are not a recommended payment method because there are cheaper, more secure ways to buy USD Coin.
4. Buying USD Coin via P2P Exchange: USD Coin can be bought from a peer-to-peer cryptocurrency exchange that offers over-the-counter (OTC) trading of USD Coin between users.
These exchanges allow users to create a posting that others can respond to. When using a P2P exchange, users can be assured of the following advantages.
- There are strict AML and KYC policies that protect all users
- Users on the exchanges have ratings and trust scores
Disadvantages of purchasing USD Coin using a P2P Exchange include.
- P2P exchanges are not always decentralized, and they do not always offer anonymous transactions.
- Malicious entities can use and exploit these exchanges for personal gain.
In terms of legal issues, these P2P Exchanges are not always regulated, and malicious activity is not eliminated.
5. Buying USD Coin via Cash: USD Coin can be purchased with paper money through exchanges such as eToro, Bitstamp, Kraken, KuCoin, and many others that allow users to purchase USD Coin directly.
There are also P2P exchanges that accept fiat payments for USD Coin.
The advantages of using cash to purchase USD Coin include.
- It is a straightforward way to purchase USD Coin
- It is a secure way to purchase USD Coin
Disadvantages of purchasing USD Coin with cash include.
- There are higher transaction fees
- Users may not get the best possible price, depending on market conditions
- There are time-consuming verification processes involved with buying USD Coin with cash
6. Buying USD Coin with Low Fees: Buying USD Coin with lowered fees can be done by using an exchange such as Coinbase, which has some of the lowest fees in the industry.
The advantages of buying USD Coin at lower fees include.
- The ability to trade higher volumes
- The ability to use leverage to maximize returns
The disadvantages of buying USD Coin at lower fees include.
- The exchange may charge other non-trading fees to gain its service fee
7. Buying USD Coin with Metamask: Metamask is a cryptocurrency wallet in addition to being a gateway to different DApps. Metamask allows users to buy, store, swap, and send different tokens.
The process involved with buying USD Coin through Metamask is simple and users can select the “buy” option from their mobile app to obtain a link to a service provider in the user's location and proceed with the transaction.
The advantages of using Metamask to purchase USD Coin include.
- It is an open-source project that is reputable and trusted
- Private keys are encrypted and kept on the browser of the user
- Metamask is user-friendly
- Metamask can be used to easily access the USD Coin blockchain
The disadvantage of using Metamask to purchase USD Coin include.
- Metamask is a hot/online wallet that has some security risks
Some issues with regards to security and legalities revolve around the fact that Metamask is an online wallet and the fact that private keys are kept by the provider on the browser. This could lead to hacking attempts where users can lose their keys, funds, or both.
What are the necessities for buying USD Coin?
Before buying USD Coin, the following is necessary.
- A USD Coin compatible wallet
- Connection to a USD Coin exchange or a broker that offers USD Coin
- Completing registration and passing the security checks, which need identity documentation (Driver's license, passport, government ID, and so on, as well as proof of residence such as a utility bill or credit card statement that is not older than 3 months).
- A valid payment method, either a debit or credit card, Paypal account, bank account, or so on.
Is there an age limit for buying USD Coin?
No, there is no age limit for buying USD Coin.
There are no restrictions on age when purchasing USD Coin. However, many exchanges such as Coinbase and payment gateways such as Paypal require that users be 18 years or older.
According to the official website and the terms of use, the website is available for persons aged 13 years and older.
What are the best cryptocurrency platforms to buy USD Coin?
The best cryptocurrency platforms where USD Coin can be purchased are:
- KuCoin
- Bitstamp
- LATOKEN
- Coinbase
- Gate.io
1. KuCoin: KuCoin is a fantastic cryptocurrency exchange for those who are interested in cryptocurrency investing. A variety of advantages are available to users, including high liquidity, many users, a diverse range of supported digital assets and services, and inexpensive trading costs.
2. Bitstamp: Because its trading costs are far lower than those charged by many of its rivals, Bitstamp is an ideal alternative for cryptocurrency investors who are concerned about fees. This cryptocurrency exchange is also simple to use, making it suitable for traders of all levels, from beginners to expert traders.
3. LATOKEN: Los Angeles-based LATOKEN cryptocurrency exchange is a comprehensive, all-inclusive platform for swapping, purchasing and selling a range of digital coins and tokens of all kinds. This platform does not allow for the trade of fiat currencies. LATOKEN offers users the option of margin swap trading on crypto-to-crypto pairings as well as trading on leveraged perpetual contracts.
The exchange offers a referral program with incentive pay-outs, as well as the opportunity to generate passive income by staking deposits in DeFi currencies and investing in blockchain projects under development.
4. Coinbase: The Coinbase platform does an excellent job of decreasing the entrance barrier for cryptocurrency investment, with a simple onboarding procedure that eases customers into trading. Simultaneously, its interface simplifies the process of surfing the site and maintaining crypto.
Additionally, Coinbase offers a vast and easily accessible library of educational resources. Users are encouraged to make use of these tools via Coinbase Earn, which teaches users how to trade certain cryptocurrencies and pays them with free cryptocurrency.
5. Gate.io: Gate.io is a huge, renowned, and sophisticated cryptocurrency exchange trading platform that offers its customers comprehensive information on the cryptocurrency markets, a selection of trading options, market analysis, and several other useful trading services and options.
In addition to displaying the varied values of a wide variety of altcoins, the site also allows users to monitor the prices of a wide range of cryptocurrencies, with new coins added frequently.
Do Forex Traders sell USD Coin?
Yes, forex traders sell USD Coin.
- Forex Traders have the opportunity of purchasing USD Coin at a lower price and selling their tokens once the price peaks, either long-term or within a trading day (day trading).
- Forex Traders buy USD Coin and hold their coins until the value has risen, after which they sell their USD Coin to make profits.
- Forex Traders can use several different, innovative algorithmic trading strategies when they buy USD Coin, allowing them to open trades at the ideal time and sell it automatically according to certain technical indicators.
What are the Buying Methods for USD Coin?
USD Coin can be bought using the following different methods.
- Credit/Debit Cards
- Bank Account
- P2P Exchanges
When users trade USD Coin, there are several different orders that they can use when they buy USD Coin through exchanges and brokers. These follow certain buying/selling strategies, and they relate to:
- Stop-Loss
- Limit Buying
- Leverage Buying
- Market Orders
- Take-Profit Order
1. Stop-Loss for USD Coin Buying: Stop-Loss orders are extremely important for traders, especially when mitigating and managing risks in a volatile market. A stop-loss order is like a limit order because it is an order that executes automatically to either buy or sell USD Coin at a specified price or better.
Stop-loss orders have some potential risks because they may guarantee a price limit, but they cannot guarantee that the trade will be executed. Stop-loss orders can prevent future gains, incur taxes, trigger taxes, and could lower the profit threshold of traders.
Stop-loss orders are ideal for beginners if they are used correctly.
2. Limit Buying Order for USD Coin: A limit order refers to an order to either buy or sell USD Coin according to a restriction to the maximum price that must be paid or the minimum price that must be received.
The risk involved with Limit orders is that there is no assurance that the order will be executed. Limit orders are best used when the trader believes that they can buy USD Coin at a lower price than the current quote.
Beginners can use limit orders to save money on commissions that their broker or exchange charges, especially on liquid coins such as USD Coin.
3. Leverage Buying for USD Coin: Leverage is a useful tool that is considered a loan where the trader can open larger positions despite their initial deposit. In return, the broker or exchange requires a certain percentage as collateral for the trade.
Leverage ratios offered by brokers and exchanges on USD Coin will not be as high as those offered with forex. This is attributable to the inherent risks involved with leverage.
USD Coin can be traded using a leverage ratio of 1:1, 1:2, and even up to 1:5 and 1:10, depending on the exchange or the broker.
The risks involved with using leverage when purchasing USD Coin is that loss can be magnified, traders can clear out their entire account, or their account could go into a negative number.
Leveraged trading on USD Coin is not recommended for beginners until they understand the risks and they can mitigate and manage them effectively.
4. Market Orders for USD Coin: Market orders can be used when traders purchase USD Coin instantly at the current market price instead of waiting for a better price. Market orders are executed instantly or as close to instantly as possible.
The risks involved with purchasing USD Coin using a market order involve agreeing to the exchange or broker filling the order at what is considered the best possible price, which limits traders because they could be agreeing to higher prices.
Market orders can be used by beginners with great caution. Beginners must analyze the market to identify what the best price is to avoid them paying a higher price than they would have using other orders.
5. Take-Profit Orders for USD Coin: Take-profit orders are another risk management tool that allows traders to maximize their profits without risking funds. The Take-profit order is above the purchase price chosen by the trader and when the price on USD Coin reaches this predetermined limit, the trade will be closed.
The risks involved with these orders is that traders might set them too high/low, and it could mean that the trader either loses out on gains, or they may cause loss.
Beginners are urged to use Stop-loss and Take-profits in combination to ensure that they can maximize their profits while minimizing their risks.
What are the alternatives of USD Coin?
These are the competitors of USD Coin:
- Tether (USDT)
- Dai (DAI)
- True USD (TUSD)
- Pax Dollar (USDP)
- Gemini Dollar (GUSD)
1. Tether (USDT): Tether is one of the largest, most prominent fiat-collateralized stablecoin, meaning that each tether in circulation is backed by the real currency, the US dollar. Because of Tether, financial services including exchanges, wallets and financial services may easily employ fiat-backed USDT tokens on blockchains, as well as financial services themselves.
2. Dai (DAI): Dai (DAI) serves as a stablecoin tied to the US dollar's value at a 1:1 ratio. MakerDAO, DAI's decentralized governance community, regulates the value of DAI to keep it stable in price.
Stablecoins are created using the DAI Maker Protocol platform, which accepts multiple cryptocurrencies as collateral, although DAI may also be purchased directly using fiat money (such as the US dollar) on most regulated cryptocurrency exchanges.
3. True USD (TUSD): TrueUSD (TUSD) is the world's first independently-verified digital asset that can be redeemed in US Dollars at a 1:1 ratio. Several banks, as well as escrow accounts and third-party attestations are used in conjunction with the multichain stablecoin to decrease counterparty risk, increase transparency, and prevent fraud.
4. Pax Dollar (USDP): Pax Dollar, a flat-collateralized stablecoin, was launched in September 2018, from where it saw quick adoption. Any user may swap US dollars for Pax Dollar tokens using the Pax Dollar Stablecoin. The major objective of this project is to stabilize the dollar via the use of blockchain.
Regulated services can be provided by Paxos because they possess the necessary charter from the New York State Department of Financial Services. Pax Dollar is not only backed by US dollars but funds are held by the firm in accounts at US depository institutions.
5. Gemini Dollar (GUSD): Gemini is a cryptocurrency exchange that allows consumers to swap US cash for cryptocurrencies. Gemini is a licensed custodian, which means that the exchange can keep the digital assets of clients on its platform.
The Gemini dollar, according to Gemini, is the first regulated stablecoin in the cryptocurrency market. Its exclusive formula leverages the dollar's stability, incorporates blockchain technology, and adheres to US legislation.
The law requires periodic audits to ensure that the 1:1 value is maintained. This eliminates one of the most serious flaws with Tether, a competitor currency that is likewise tied to the dollar but lacks transparency. In addition, regular auditing contributes to Gemini's validity and investor confidence.
Why should you invest in USD Coin?
Investors can consider USDC for the following reasons.
- USDC is easily transferrable. Senders and receivers can transact in USDC at any given time of day without worrying about processing times. When users want to send money across borders, the payment will reach the recipient within a few seconds. This is an advantage as it eliminates long processing times that could take days, as is the case with conventional payment methods. In addition, USDC is a stablecoin and this means that there is no risk of price fluctuation.
- USDC is compatible with DApps. USDC is operated from the blockchain of Ethereum, which gives it inherent compatibility with DApps. USDC holders can therefore gain access to a variety of items in the cryptocurrency space such as NFTs, games, and several others.
- Transparency and security. Circle is the issuer of USDC, and it is a reputable entity that is partnered with Coinbase, with all transactions audited by Grant Thornton LPP.
- Stability is guaranteed. Stability is an inherent characteristic of all stablecoins and the reason why so many people prefer them is attributable to the exposure that users get in cryptocurrency, without the risk of volatile market conditions where prices fluctuate drastically and quickly.
- USDC is a better alternative to Tether (USDT). USDC is becoming a preferable stablecoin because of the controversy behind Tether that still exists.
How to sell USD Coin
USD Coin can be sold in the same way that users purchase USD Coin, namely.
- A PayPal Account
- Credit/Debit Cards
- Bank Account
- P2P Exchanges, and others.
Selling USD Coin is different from purchasing because the trader is converting their USD Coin for either fiat currency or other cryptocurrencies. The reasons why users sell them USD Coin relate to.
- Having reached a certain profit target
- According to selling signals that were triggered, indicating the perfect time to exit a trade.
- According to stock chart patterns that signal price volatility and repetitive patterns, showing that a trend is about to end.
- According to Fibonacci ratios and geometric price patterns.
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