A USDC or USD Coin is a cryptocurrency based on the Ethereum blockchain. The currency is designed as a stablecoin; which means its value stays consistent relative to other currencies in the crypto market. The reason for USDC’s stability is that it is pegged with the USD i.e. one USDC is ideally equal to one US dollar.

Launched in 2018 by Circle and Coinbase, USDC may be one of the biggest cryptocurrency projects among the 19000 projects out there. After Tether, USDC is the second biggest stablecoin with more than US$ 51 billion in circulation. And among all other cryptos, it is the 4th largest!

USDC and the digital economy

The majority of USDC investors aim at earning passive income from their investments. USDC can be lent directly through the issuer, circle, or hard or soft wallets.

Investors of USDC also earn through online savings specially designed for stablecoins. It is said that stablecoin holders, such as USDC investors enjoy the highest returns as they play a key role in maintaining the prevailing value of the currency.

Places to buy USDC from

Just like other cryptos, you can buy USDC on various cryptocurrency exchanges. However, choosing an exchange that has a low fee and offers high security and currency options. We are sharing a few places that might interest you as you begin your crypto journey.

• Kraken
• Gemini

Note that being a stablecoin, USDC is not paired with any other currency in the true sense. However, many exchanges do allow investors to procure cryptocurrencies using USDC. A few exchanges that allow such transactions are as below:

• Binance.US
• Bitstamp
• KuCoin

Buying USDC

If you are aware of the pros and cons of the USDC and have decided to invest in the currency, here are the steps that you will follow

Choosing a crypto exchange

The interfaces of all exchanges differ widely in terms of fees, rules, and limitations. Drawing a comparison among three or four shortlisted exchanges is a good exercise that will help you select one that suits you best. 

Funding your account

The second step after you have signed up for an account on an exchange is to fund your account. Funding methods may vary from exchange to exchange. While the majority accept funding through credit cards and internet-based platforms, others may even allow other cryptocurrencies and other major conventional currencies as well.

However, if you choose to fund it, it should completely comply with the guidelines provided by your exchange. 

Buy USDC

As simple as it sounds, all that is left once you have funded your account is to provide the amount you wish to spend and hit the ‘buy’ button!

Storing your assets

After you have purchased your desired amount of USDC, you will need to store your purchase in a wallet. There are different types of nature and they differ from one another based on connectivity, security, and ease of use.

• Hardware wallets: Also called the “cold wallets” or “cold storage” these are tangible hardware devices that mostly look like USB drives. The Crypto you bought can be downloaded to a hardware wallet and be physically transported anywhere. 

• Paper wallets: Also a type of cold wallet; a piece of paper with public and private keys in form of QR codes is an easy way of keeping your investment secure.
• Hot wallets: Hot wallets are any number of stores that are connected or accessible to a network through the internet or otherwise. A big example is online wallet services such as Kraken, Gemini, Circle, etc.
• Software: A form of cold storage, purpose-built software allows you to secure and manage your cryptos without being connected to the internet.