What is USD Coin and How to Buy It?
What is USD coin? Today we are talking about this topic. USD coin is a well-known fiat collateralized stable coin that is issued by consortium featuring Coinbase and Circle. It is one of the largest stable coin in terms of market cap. It was developed in 2018 and it has seen significant growth since its launch in 2018.
They have a lot of impressive backers such as Silvergate and Goldman Sachs. The USD coin is also pegged with a %100 backing one to one with USD. Transparency is their biggest guarantee.
USD coin is an ERC 20 token which is on Ethereum blockchain. One of the biggest advantages is the transaction speed. Funds can be moved as quickly as the Ethereum Network allows. It also has the benefits of convenience. You can trust it because you are using a DC centralized Ethereum network, and you know that you are working with some of the biggest names such as Coinbase and Circle. One USD coin is equal to $1.
This stablecoin can be exchanged back to USD at any time because it is collateralized. Every USD coin minted there is $1 being held in reserve and USD coin is supported by blockFi you can use it to fund your blockFi account.
If you want to look at their progression, you can see that in 2018 October they were ranked 58 by market cap. Their market cap was $125 million in their early launch days. After two years, in 2020, they became ranked number 23. Their market cap was $518 million, and their daily trading volume was 335 million. You can notice that their growth is huge. At the first quarter of 2021, they had a $5.8 billion market cap and 1.4 billion daily trading volume. Today USD coin has nearly $22 billion market cap and ranked number 8 in the total market.
How To Buy It?
Everyone USD you have, you own one dollar. If you have $1,000, you get $86 per year therefore at the end of the year you will have $1,086. The next year you are going to get %8.6 of that and it will give you $93.39. It will grow over the years like this.
If you want to start, you need a Coinbase account and a BlockFi account. You can download them easily and use them with your phone. They also have a mobile version. If you are using Coinbase, you have to sign up. After that you have to click the blue button and choose a USD coin. Then you are going to enter the amount that you want to put into your BlockFi account. When you write the amount and click the enter, it will show you the USD coin price, payment method and Coinbase fee which is $0. Coinbase fee is $0 because Coinbase being a CO Founder of USD coin. After you submit you will get a confirmation email.
You can send your USD coin from your Coinbase account to your BlockFi account. If you do not have a BlockFi account yet, you have to create an account. You are going to click the interest account and choose USD coin. Then you are going to click deposit and see a QR code. There will be a number of letters. You have to copy that wallet address and go to your Coinbase account. You have to write the amount and paste that link that you copied before. After you have done all these steps you will see a preview of your transaction. Of course, there will be a network fee.
This is not a financial advice. You must make your own decisions and you are responsible for your decisions.