A publicly available monthly audit by Grant Thornton LLP allows buyers to verify that USD Coin (USDC) is fully backed by USD and always 100% redeemable for dollars. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current. Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site.
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. You also can use USDC on exchanges to easily convert to other cryptocurrencies without needing to access funds from your bank account. This is a better option for most retail investors, as there are much lower fees, however, USDT is a much more common in crypto/stablecoin trading pairs.
All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Crypto.com to invest, buy, or sell any coins or digital assets. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation. Coinbase is the largest exchange in the US, with over 98 million verified users in over 100 countries and approximately $256 billion in assets. Coinbase allows you to trade more than 130 types of cryptocurrency.
Trading and converting your USDC is much easier than onboarding actual U.S dollars into the cryptocurrency market. Since USDC operates on Ethereum, you can swap between USDC and any Ethereum-based https://www.tokenexus.com/what-is-an-energi-coin-and-what-are-the-most-important-advantages-of-it/ token on decentralized exchanges like Uniswap or Sushiswap. If you use a DEX, beware of high gas fees –– due to high demand for network space, it may cost over $100 to transact on Ethereum.
Is USD Coin real money?
Make free, instant USDC transfers to all your friends, family, or colleagues as long as they have a Nexo account. Visa recently announced its plans to settle transactions in USDC on Ethereum’s blockchain, which is huge news for Ethereum’s network becoming more practical. The current price of USDC is $1.00 or £0.85 (at the time of writing). You can find the live price of one USD Coin at any point in time on CoinMarketCap. Some other examples of ERC-20 tokens using the Ethereum blockchain include Tether USD (USDT), Chainlink (LINK) and Shiba Inu (SHIB).
If you’d like to opt-out or learn more about rewards, you can click here. Customers will be able to see the latest applicable rates directly within their accounts. Please remember that cryptoassets are highly volatile, unregulated investment products with no UK or EU investor protection. Additionally, capital gains tax may apply to profits from cryptocurrency sales. You can store your USD coins in a software wallet, like Coinbase or CoinStats. Coinbase has a dedicated wallet application that’s great for storing your cryptocurrency.
How do I buy USDC in the UK?
If you were to buy USDC in the UK with British pounds (GBP), new USDC would be minted as your GBP was converted into US dollars and deposited into a bank account. There have been attempts to create stablecoins not backed by fiat currency, known as algorithmic stablecoins. These have yet to prove successful, with one of the most high-profile how to buy usdc of these being Terra USD which recently collapsed. This is especially beneficial for people in developing countries where the national currencies are unstable. Stablecoins also serve as a safe haven for crypto traders in times of extreme volatility. Each USDC is backed by one U.S. dollar, which is held in a bank account.
- If you use a DEX, beware of high gas fees –– due to high demand for network space, it may cost over $100 to transact on Ethereum.
- Yes, you can buy USDC (USD Coin) through various cryptocurrency exchanges in the United Kingdom, abiding by the nation’s financial regulations.
- Most exchanges will allow you to transfer your USDC back into fiat currencies such as US dollars or British pounds.
- USD Coin (USDC) effectively functions in much the same way as other fiat-backed stablecoins, such as Tether (USDT), Gemini Dollar (GUSD), and Pax Dollar (USDP).
- Please remember that cryptoassets are highly volatile, unregulated investment products with no UK or EU investor protection.