USD Coin: Is it a good investment?

Throughout the years, transactions have been made easier, especially with the popularity of cryptocurrencies. There are various kinds of this wonderful asset and among them are stablecoins which are pegged to fixed values. 

Stablecoins were made to provide balance between traditional currency and other emerging coins. Unlike cryptocurrencies, stablecoins are less volatile. They also have other features that make them special on their own. Among these is the fact that their prices don’t fluctuate as much as other coins do. 

There are several impressive coins out in the market today and one of them is the USD Crypto coin or USDC. Here’s everything you need to learn about the asset: 

What is USDC crypto? 

Developed in 2018, the USDC came into existence as the brainchild of American entrepreneurs Jeremy Allaire and Sean Neville. Together, they made the Centre Consortium which was made possible with the help of Coinbase’s partnership with crypto platform Circle. With it, they were able to develop blockchain technology which runs USDC assets. 

Specifically, the USDC crypto coin is a digital currency fully backed by the US dollar. By being a stablecoin, you can expect that its value is always pegged to a dollar in a 1:1 ratio. This means that unlike other crypto, USDC is not prone to fluctuations. That way, you rarely have to check for a USDC crypto price prediction for its current value. 

Despite being called such, you should keep in mind that USDC is not, in any way, backed by the U.S. government. Rather, it is an open-source project where anyone can contribute to its code. 

How it works 

If you’re wondering how the coin can maintain a 1:1 value to USD, it is simply backed by a reserve asset. This means that some banks use the currency for transactions and payment transactions. Specifically, the coin undergoes two major processes that make it work smoothly—minting and burning. 

Minting pertains to the process of generating new coins by verifying data, creating new blocks, and recording on the blockchain. This happens when a buyer sends a certain amount of USD that will be converted into USDC. It will then be issued to the issuer’s bank account. The issuer will then use smart contracts to create USDC and exchange it for the same amount of USD that was sent. Once minted, it will be sent back to the buyer as USDC while their USDCs are kept on reserve. 

Meanwhile, burning pertains to how coins are ‘burnt’ to stop being a part of the circulation. This happens in USDC when you sell USD coin crypto in exchange for fiat. That way, the coin will be burned as the fiat is transferred to your bank account. 

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Special features of USDC 

Several impressive features of USDC will make you more eager to have it. By knowing more about the wonders of USDC, you'll know what sets it apart from other coins circulating in the market.

Here are its special characteristics which will help you determine if it is indeed a great USD coin crypto investment: 

Inter-blockchain compatibility 

One of the impressive features of USDC crypto is that it is supported by some of the leading blockchains in the industry. Among those you can use for it are:   

• Ethereum
• TRON
• Solana
• Algorand
• Stellar
   

A special automated programme 

Unlike other cryptocurrencies, USDC uses a special programme called Laravel Cron Job. By making the most out of Ethereum's blockchain confirmation, this fully automated software allows you to buy and withdraw money in less than five minutes.

Several payment methods 

For easy transactions, you can use USDC with various payment methods like PayPal. With the ability to be used as fiat or as crypto, you can buy or withdraw money in a few minutes. When making withdrawals, you just have to keep in mind that there’s a 1% fee.

Accessibility 

Another special feature you’ll like about USDC is how it allows you to quickly check your account balance, transaction history, as well as its exchange rates. 

How safe is USDC crypto?

Generally speaking, it is safe to use USDC since it is backed by reputable companies like Circle and Coinbase. In terms of being an asset and data privacy, there are no issues with the said coin. 

However, it can be a risky investment. Since they have less price volatility, some regulatory bodies like the U.S. Securities and Exchange Commission might be more eager to investigate it. With this, it is important that you should always be aware of the risks that come with investing in assets like this. 

Practical uses of USDC 

What makes USDC an impressive asset is its capability to do several things. By knowing what it's capable of, you can determine and plan what to do with it. That way, you can use the coins for something valuable and not just have them sit in your wallet. Here’s what you can do with USDC: 

Peer-to-peer (P2P) transactions 

You can easily use USDC to trade an asset within a short period. You can enjoy faster and cheaper transactions even if the receiving end is on the other side of the world. 

Given that it’s compatible with several reputable blockchains, you won’t have to worry about having complications in moving it from one account to another. 

Crowdfunding 

You can use USDC for crowdfunding activities and global fundraising which can help participants achieve their goals. Among the practical applications of this are in start-up companies as well as non-profit organizations. With USDC, you are guaranteed that their prices won’t fluctuate as much as cryptocurrencies like Bitcoin. 

Purchases 

There are several companies and merchants that accept USDC as a payment method. Given that it’s valued the same as USD, you can easily use it to pay for goods and services even when you are in a country that doesn’t use USD. 

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Where to buy USDC crypto 

If you want to have your own USDC, it is important to know not just about the USD coin crypto prediction reports as you should also be aware of where you can get it safely. Aside from Coinbase, USDC’s main partner, several other exchanges allow you to purchase this stablecoin. Some of these are:

• Airswap
• Binance
• BitMax
• Cex.io
• Kraken
• Bittrex
   

Ensuring the safety of your USDC coins 

Once you have your own USDC coins, the next thing you are guaranteed is safety. You can do this by signing up with reputable wallets that have advanced encryption methods. If you are a USDC coin holder, choose a wallet that’s ERC-20 compatible. Some of the trusted wallets are:

• Coinbase Wallet
• Exodus
• Ledger
• Zeux
• Crypto.com
• AlphaWallet 
   

Another way you can guarantee the safety of your assets is by checking the reserve bank partners USDC has. With these, you are assured that every transaction you make will undergo a thorough process of check and balance which can provide you peace of mind. Among these are: 

• Chainalysis
• Seba Bank
• OpenZeppelin
• MVIS CryptoCompare
• Coinfirm
• ConsenSys
   

Pros and cons of having USDC 

There are several advantages and disadvantages that come with each coin. If you’re planning to buy USDC, here are several pros and cons that come with it: 

Pros

• A stellar reputation because of being backed by US-regulated assets
• Has a great liquidity
• Price stability
• Serves as a great shield against inflation
   

Cons 

• Lack of transparency when it comes to reserve assets
• Transaction fees can be high
• Has no chance of appreciating in terms of value
• Can be directly affected by USD price inflations 
   

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Predictions on USDC’s future 

Although USDC may be considered a stablecoin, its price is subject to move up and down. Since it is pegged to the USD, you can expect that the value doesn’t go too far from there. With that, it is important that you also check USD coin crypto price prediction reports to know what to expect from the coin in the long run. 

According to some experts, USDC can be valued at somewhere around $0.86. The coin is expected to have a good run at the start of 2023 with some slight fluctuations along the way. The maximum predicted value of the coin in the years to come can be around $1.26. 

Is USDC crypto a good investment?

To wrap it up, USDC is a great digital asset but it can be hard to consider it as an investment. As investments are made by people who are looking for price growth, USDC or any other stablecoin will not be a great choice. 

However, if you’re wondering if it’s a worthy asset, then definitely it is. With a lot of promising traits that provide convenience and reliability, the coin has promising potential. Since it’s not as expensive as other coins in the market, you may want to give it a go. 

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Words: Kyra Jimenez