Learn how to buy USD Coin using my easy-to-follow guide and discover why Coinbase is my recommended option when it comes to buying, selling, and storing your USD Coin.
I will even guide you through how to avoid commission fees when converting your local currency into USD Coins using Coinbase.
The 4 simple steps I used to buy USD Coin on Coinbase
- Go to the Coinbase website or download the Coinbase app
- Open an account – this can be done online in moments
- Deposit your funds – using a credit/debit card or bank transfer
- Buy USD Coin instantly – simply select USD Coin from the list of assets and enter the amount you would like to purchase
Where is the best place to buy USD Coin?
There are many cryptocurrency exchanges to choose from, however, users have historically been hesitant to buy USDC outside of the U.S. due to the fees levied when converting their local currency to USDC.
That’s why I’ve taken the time to identify that Coinbase has taken steps to eradicate commission fees, making them a good, cost-effective option with a user-friendly interface, advanced security, and high liquidity.
One of the big advantages of Coinbase is how easy it is to use. Even a complete novice will feel at home here and they also provide users with the Coinbase Wallet, where you can store your USD coin securely.
Open an account
Here is my step-by-step guide on how to open an account with Coinbase:
- Head to the main Coinbase website or download the Coinbase app and select ‘Get Started’.
- Fill in details such as your name and email and choose a password.
- Certify that you are over 18.
- Accept the user agreement and privacy policy.
- Go to your email in order to click the verification link.
- Select your country and phone number.
- Verify your phone number by adding the 7-digit code sent to your mobile device.
- Add your address and respond to some basic questions in relation to your employment status.
You may at this point be automatically asked to verify your ID. I would advise that you complete this process as it is required in order to purchase USD coin. You will need to upload a photo ID such as a driving licence or passport.
What is USD Coin?
USD coin is a digital dollar, however, unlike other cryptocurrencies, it is a stablecoin, meaning that USD coin’s value is pegged 1:1 to the value of the US dollar. It is also the fourth largest in market cap among all cryptos. This achieves the following:
- The USD coin is much less volatile than cryptocurrencies.
- It is fully backed by the US dollar or dollar-denominated assets.
- It can be stored without a bank account.
- It is compatible with several blockchains.
- It uses a tokenised process to ensure there are reserves backing the entire supply of USD coin.
USD coin was founded in 2018 by Circle, a peer-to-peer payments company, and Coinbase Global, the cryptocurrency exchange. According to Circle, today there are over 43 billion USD coins in circulation with monthly reports from its management ensuring complete transparency with regard to its reserves.
Is USD Coin Safe?
USD coin is one of the safest stablecoins due to the transparency of how it is minted and managed. Every USD coin in circulation is backed by fully reserved assets in the equivalent value and held in segregated accounts with US-regulated financial institutions.
In terms of storage, being an Ethereum token, USD coin can be stored in any Ethereum network-compatible crypto wallet such as you would find at Coinbase.
Unlike other digital assets, USD coin is not subject to price volatility that other cryptocurrencies are susceptible to as it is pegged 1:1 to the US dollar. When stored correctly, USD coin is one of the safest digital assets available.
Is USDC worth buying?
This would depend on your motivation for buying USD coin. The goal of the digital asset is and always has been, to track the price of the underlying asset. Aside from some very slight deviations, USDC has largely managed to achieve this.
This means that it holds the same potential as the USD itself. USDC could be used as a means of hedging against inflation for non-US residents who may have concerns about protecting the value of their holdings in their local currency. It is also safe to say that USDC does achieve its primary goal of providing a digital asset that can help streamline payment systems and as a stablecoin is it less risky than some of the other options available including non-stablecoin cryptocurrencies.
The other reason to buy USD coin is to earn rewards on Coinbase.
What is staking?
Staking is when an investor leaves their digital assets on an exchange in order to earn rewards. The rewards you earn are usually calculated as a percentage of your holdings. This is made achievable by the blockchain utilising your crypto or stablecoin to verify and secure transactions without the intervention of a bank or payment processor.
Whilst staking is an excellent way to make your crypto work towards generating rewards, there is often a period of time whereby your staked assets cannot be transferred or traded, even if the price begins to shift. Therefore you should be familiar with all the staking rules on the exchange you choose, before embarking down this route.
Is USDC real money?
USDC is a tokenized version of the US dollar, meaning it can be exchanged for the equivalent amount of US dollars at any time. Every USDC in circulation is 100% backed by one U.S. dollar which is held in segregated accounts with US-regulated financial institutions. It is also widely accepted as a payment method and can be used to earn rewards.
It is a stablecoin, that runs on Blockchain technology. In this way, it performs just like traditional money without the volatility of other cryptocurrencies like Bitcoin.
Disclaimer
Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales. Content is for information purposes only and is not investment advice. Past performance is not indicative of future results. Investing in cryptocurrency comes with risk.Upon purchase of USDC, you will be automatically opted into rewards. If you’d like to opt-out or learn more about rewards, you can click here. The rewards rate is subject to change and may vary by region. Please check the latest list of eligible regions here. Customers will be able to see the latest applicable rates directly within their accounts.
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