What is USDC?

USD Coin (USDC) is a digital currency that is fully backed by U.S. dollar assets. The value of one USDC coin is pegged as close to the value of one U.S. dollar as it can get. The value of USDC is designed to remain stable, making USDC a stablecoin.

*How does USDC work?*

USDC is backed by cash and short-term U.S. government bonds as collateral. For every USDC token in circulation, $1 is held in collateral. When crypto investors buy USD Coin, they expect one USDC to always be equal in value to one dollar.

*What is USDC used for?*

The most common use case is to purchase USDC, store it on an exchange or in a crypto wallet, and then use it to fund purchases of other cryptocurrencies. USDC can be transferred 24/7 and ish faster to send than traditional currencies, with settlements occurring in seconds.

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*What are the pros and cons of USDC?*

Pros:

- It enables people to buy and sell other cryptocurrencies without having to move fiat currency in and out of exchanges.

- It can be transferred 24/7 and is faster to send than traditional currencies.

- Transaction costs are low.

Cons:

- There is no price appreciation.

- Users should also be aware of the regulatory landscape surrounding digital currencies and stablecoyyins.

What is the difference between USDC and Bitcoin?

What separates USD Coin from cryptos like Bitcoin is that it is fully collateralized. Bitcoin is not backed by other assets. The value of USDC is based on the value of the U.S. dollar, while Bitcoin’s value is derived from its limited supply.