USD Coin (USDC): Stable device for merchants
There are countless tools for merchants in the cryptocurrency world to diversify their portfolio and increase the potential return. These options include the USDC (Tether Limited), the US dollar, Stabrecoin. In this article, we dive into what makes the USD medal an attractive device for merchants, its benefits and how to use it in various trading scenarios.
What is the USD coin?
USDC is a decentralized stablekin designed to provide secure and reliable value storage. It was created by Tether Limited, founded by Chris Brooks in 2014. The device is supported by a US dollar reserve, held in the bank account of Jpmorgan Chase Bank.
How does it work?
To understand the USD coin, let’s look at the process:
- Reserve: If you buy or sell a USDC, basically buy or sell a US dollar that is held by a dollar reserve.
- Insurance: The amount of devices supported by the US dollar in the reserve determines the value of some units (USDC) of the USD medal.
- Stablecoin Peg: The total amount of USDC in circulation is set to 1: 1, with the value of the US dollar, making a stable value storage.
Benefits for merchants
The USD coin offers many benefits that are an attractive tool for merchants:
- Low liquidity risks:
Since the USD medal is supported by US dollar reserve, there is little or no risk to high liquidity on the market.
- Reliability: The stability of the USDC ensures that prices are more predictable and less volatile than other cryptocurrencies or devices.
- Scalability: Like a stabcoin fixed to a Fiat currency, the USD medal is designed for large -scale transactions and trade, so it is ideal for institutional merchants.
- Diversification: With low volatility and widespread use (this below), the USD coin offers an excellent diversification opportunity for dealers seeking risk.
Use cases and trading strategies
The USD coin has many applications on different markets:
- Commercial Platforms: Many popular commercial platforms, including Robinhood, Etoro and Coinbase, offer USDC as a trading couple.
- Fiat currencies.
- Investment in Defi Projects: The fixed value of Stablecoin is an attractive tool for investing in decentralized financial (defi) projects that often rely on stabcoins such as USDC.
Stablecoin pairs
While many merchants know Stablecoin pairs such as Tether USD (USD USDT), USDC and Bitcoin ($ BTC), there are other remarkable Stablecoin pairs that need to be considered:
1.
2.
Conclusion
USD Coin is a versatile Stablecoin that offers many benefits to merchants in different markets. Its low liquidity risk, reliability, scalability and widespread use are an attractive tool for institutional traders and individual investors. As demand for decentralized Stabrecoins continues, the USD -medal only increases as a commercial vehicle.
Before investing in any cryptocurrency or stabrecoin, it is essential to conduct thorough research, weighing risk tolerance, and always compliance with local regulations and market guidelines.
Legal statement: This article only serves information purposes and should not be considered as investment advice.