What Are the Benefits of Investing in USDC?
Bitcoin and Ethereum are the two most recognized and widely used cryptocurrencies.
19:56 06 July 2022
The two of them account for over 60% of the market. However, there are also other cryptocurrencies in the digital market, and even though these two major ones have high returns, they are subject to price volatility. The price fluctuations are both advantageous and risky for crypto traders. Therefore, to mitigate this and provide a better solution, stablecoins were born. They have helped maintain price stability, with USDC being the most common.
What is USD, and How Does It Work?
USDC is a stable coin that runs on the Ethereum blockchain and is governed by the Center. That means that for every USDC created, there is a dollar held. You can buy and sell the token in different cryptocurrencies, making it a convenient choice for most users. A USDC is valued at $1, and you can transfer it to anyone worldwide without any fees. Furthermore, if you choose the right exchange part, you will get the best yield on USDC. When you deposit a dollar, it is converted to a USDC, and if you wish to redeem them, the coins are destroyed to ensure a consistent backup. However, much trust is required between the parties overseeing these transactions, which is why routine updating is necessary. Here are the uses of USDC.
- Transaction Within the Crypto Ecosystem
USDC allows you to buy, sell and transfer money within the cryptocurrency area. Instead of the huge hassle of changing your crypto to cash from a bank, you can transfer the USDC, which will be turned into dollars. The good thing is that both centralized and decentralized exchanges accept USDC. This gives you many choices of where you would like to invest your money.
- Get Paid in Crypto
Today, it is possible to pay employees through crypto. When you invest in USDC, you can pay our employees through USDC, unlike Bitcoin and Ethereum, which are price volatile. USDC provides a safe method of payment away from the price swings of other cryptocurrencies.
- You Earn Interest
It is also possible to earn interest when you lend your tokens to some platforms. This means that it is possible to earn more with USDC than with traditional banks. Furthermore, the coins allow you to choose where you want to invest your assets.
- Allows Cross-border Remittances
Changing your currency to another currency is extremely costly and inconvenient. It may even take days before the payments are processed. However, with the USDC, you can easily make cross-border payments from your crypto wallet to another wallet with low transaction costs. This is another reason why investing in USDC is a good choice.
- Receiving Government Help
Today, governments have also accepted the use of stablecoins. This has made it easy for individuals and businesses to get government relief funds. USDC also simplifies international donations between countries.
Investing in USDC and other stablecoins not only saves you from price volatility but also gains the benefits discussed above. These are enough reasons to invest in USDC and other stablecoins due to their ease of transaction and facilitating payments across borders.