In an increasingly digitally connected world, crypto assets have become increasingly popular as an alternative to traditional currencies. 

One prominent crypto asset is USD Coin (USDC), known as the “Digital Dollar.” 

In this guide, we will explore in depth what USD Coin is, as well as why it is an attractive option for many people in 2024.

What is USDC?

USD Coin (USDC) is a stablecoin that is pegged to the United States dollar (USD) at an exchange rate of 1:1. 

This means that each unit of USDC has the same value as one US dollar. This crypto asset operates on blockchain , allowing users to make transactions quickly and cheaply around the world.

Check Price :

USDC/IDR Price	Price BONK/IDR
BTC/IDR price	DOGE/IDR price
ETH/IDR Price	Price  SEI/I DR

Why is USDC Called the Digital Dollar

USDC is referred to as the “Digital Dollar” because its value is held directly to the US dollar. 

This makes USDC one of the most stable stablecoins on the market, as its value is not affected by price fluctuations that are common in the crypto market. 

Thus, USDC becomes an attractive option for those who want to maintain the stability of the value of their crypto assets.

Also Read: What is Coin Margined Trading?

Advantages of USD Coin Compared to Other Coins

Value Stability

One of the main advantages of USD Coin is the stability of its value held to the US dollar. 

This makes USDC a safe choice for users who want to avoid price fluctuations that are common in the crypto market.

Fast and Cheap

USDC allows users to make transactions quickly and cheaply around the world. 

Low transaction fees make USDC an attractive option for those looking to transfer money internationally without high fees.

Wide Support

USDC is supported by a large number of platforms and services around the world. These include leading crypto exchanges, digital wallets, and online payment services. 

This broad support makes USDC easy to access and use for many people.

Transparency

USDC has a high level of transparency, with all transactions recorded openly on the blockchain. 

With this transparency, users can track and verify every transaction easily.

Regulations

USDC is regulated and supervised by financial authorities, such as the United States Department of the Treasury. 

This provides an additional level of confidence for users, as USDC is run according to strict standards and regulations.

With these various advantages, it is not surprising that USD Coin will become a popular choice among crypto users in 2024.

 Its value stability, ease of use, and broad support make USDC one of the most sought-after and reliable stablecoins in the crypto market today.

Also Read: Tips for Maximizing USDT Staking Profits

Reasons for Creating USD Coin (USDC)

As previously explained, this crypto was created to provide a way to convert USD Coins into USD. 

The goal is to meet the needs of crypto asset users who are looking for a stable and secure digital alternative.

Conventional crypto assets such as Ethereum or Bitcoin are known for their high volatility, where prices can change significantly in a short time due to various factors such as supply and demand, regulations, or economic events.

This kind of volatility often makes crypto assets less suitable for use in everyday life and commercial transactions, because price fluctuations can cause large losses in value in a short time. 

USDC was created to solve this problem by providing a stable digital alternative to the US dollar, which is the most widely used currency worldwide.

It is important to remember that the value of USD Coins is backed by US dollar reserves held at verified banks. 

This ensures currency value stability and protects users from potential USD Coin price fluctuations. 

Stablecoins like USDC allow users to transfer funds between various crypto asset platforms quickly and at a lower cost. 

With USDC users no longer need to exchange funds into US dollars or other fiat currencies .

How USD Coin (USDC) Works

USD Coin operates like other crypto assets, only its stability is guaranteed by its parity using the US dollar.

Here's how USDC works:

Available exchanges

USD Coin's blockchain of choice is the Ethereum blockchain, which allows storage and trading on Ethereum-compatible digital wallets. 

These USDC tokens can be bought and sold on cryptocurrency exchange platforms, transferred to other users, or used for commercial transactions.

US dollar reserves

The coin's US dollar reserve is backed by the Central Consortium, which consists of various crypto companies such as Circle and Coinbase. 

These reserves are held in verified bank accounts, ensuring that each USDC token can be exchanged for US dollars at any time.

Verification and transparency

The Central Consortium ensures the support of each USD Coin price with US dollar reserves through bank account verification and reserve transparency reports.

Price stability

The stability of the value of USD Coin, which is tied to the US dollar, makes it a reliable and relatively stable cryptocurrency. 

This positions USDC as a convenient digital alternative for commercial transactions and fund transfers between various crypto platforms.

Staking USD Coin

Staking USDC involves locking tokens to earn interest, while conventional staking requires validating transactions on the blockchain network to earn rewards for staking USD Coin.

Advantages and Disadvantages of Investing in USD Coin

USDC is a stablecoin pegged 1:1 to the US dollar. 

Stablecoins are crypto assets designed to minimize volatility, and USDC is one of the most popular and trusted stablecoins.

Advantages of Investing in USD Coin

• Stability: The value of USDC is pegged 1:1 to the US dollar, so its value is relatively stable compared to other crypto assets.
• Security: USDC is issued by Circle, a company that is regulated and audited by top financial institutions.
• Utility: USDC can be used for a wide variety of purposes, such as trading, payments, and staking.
• Accessibility: USDC is available on various crypto exchange platforms and wallets.

Disadvantages of Investing in USD Coin

• Yield: USDC offers relatively low yield compared to other crypto assets.
• Centralization: USDC is issued by a centralized company, so it is not completely decentralized like other crypto assets.
• Regulatory Risk: Crypto regulations are still unclear in many countries, and unfavorable regulations could negatively impact USDC.

Current State of USDC

If you pay attention to Bittime Trade , USD Coin almost does not experience significant fluctuations. 

USD Coin fluctuations against IDR tend to be stable. This could happen because USDC is a digital version of the US dollar.

On February 12, 2024, there was no significant increase or decrease in the value of USDC. The price of 1 USDC to IDR was worth IDR 15,664 over the last 24 hours.

How to Buy USDC on Bittime

You can buy and sell USD Coin coins in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

USD Coin is available on Bittime with USDC/IDR pairing.

To be able to buy USDC IDR coins on Bittime, make sure you have registered and completed identity verification. 

Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet.  For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, then you can purchase USD Coin (USDC) in the application. 

Monitor price chart movements of ETHEREUM (ETH), Bitcoin (BTC), Solana (SOL), MANTA, and other cryptos to find out today's crypto market trends in real-time on Bittime.

 

Also Read:

USDT vs USDC: Which is Better?

USDT, USDC & BUSD Differences: Comprehensive Guide

What Are Digital Dollars? How is it Different from Crypto?

Arthur Hayes Believes a Bitcoin ETF Could Draw Billions of Dollars from TradFi

Staking vs Lending, Which is the Most Profitable?

What is Platform and Context with Cryptocurrencies?

Spatial Web and Web 3.0, Computer Age

 

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.