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How to Buy USD Coin in 2024

Last Updated January 3, 2024 12:40 PM
Justin Murphy
Last Updated January 3, 2024 12:40 PM

On this page, I provide a detailed guide to how you can buy USD Coin.

Many investors are drawn to this digital asset because it is a stablecoin. USDC is ‘pegged’ to the United States Dollar. This means that one USD Coin should always be worth at or close to $1.

USD Coin offers some of the pros of crypto without the volatility. In an era where people want to keep their financial affairs private, USDC is an attractive asset.

Thus, there is a greater interest in buying cryptocurrency than ever. This guide provides the following information on this process:

  • What USD Coin is
  • A step-by-step guide to buying this crypto asset
  • Guidance on how to store it safely

Please remember that, despite being a stablecoin, buying USD Coin is not 100% safe. Also, the info on this page should not be considered financial advice.

CCN takes no liability or responsibility for any loss of funds associated with buying any crypto asset.

What Is USD Coin?

USD Coin (USDC) is a cryptocurrency known as a stablecoin. This makes it a digital representation of the US dollar. It also means each USDC token is meant to be equivalent to one US dollar.

Like other stablecoins, USDC is backed by reserve assets.

USDC was launched in September 2018 as a joint effort by Circle and Coinbase. Circle is a financial technology company. It specializes in blockchain and digital currency solutions.

Coinbase is a popular cryptocurrency exchange platform. It allows users to buy, sell, and store various cryptocurrencies.

The collaboration between Circle and Coinbase resulted in the creation of the CENTRE Consortium. It is a platform that enables the issuance of USDC.

The CENTRE Consortium oversees the governance and standardization of USDC to ensure its stability and transparency.

USDC aims to provide a digital version of the US dollar. The coin is usable on blockchain networks and within the cryptocurrency ecosystem.

Today, USD Coin is one of the most widely used stablecoins in the cryptocurrency market.

How To Buy USD Coin: Everything You Need To Know

Some investors think that it is difficult to purchase USDC. Yet the process is simpler than most customers realize.

Here is a detailed guide to investing in this coin. You’ll soon find that adding it to your crypto wallet is straightforward.

Select a reputable crypto exchange

Choose a trustworthy cryptocurrency exchange that supports USDC trading. Look for well-established exchanges. They must have a good reputation, and offer a user-friendly interface.

Some popular exchanges that support USDC include Coinbase, Binance, Kraken, and Bitfinex.

Visit the exchange’s website and click the “Sign Up” or “Register” button to create an account. You must provide an email address and choose a secure password.

After registering, the exchange will send a verification link to the email address you provided during the sign-up process. Click on the link to verify your email. This step helps confirm that you own the email address associated with the account.

You have no opportunities to make purchases until you complete this step.

Log in and set up security

Once your email is verified, log into your newly created account. Many exchanges will prompt you to set up additional security measures.

Two-factor authentication (2FA) is a prime example. It adds an extra layer of protection to your account. Typically, you must enter a one-time code sent to your phone. Otherwise, the code is generated by an authentication app.

To comply with regulatory requirements, some exchanges ask for additional personal info. You must give your full name, date of birth, and residential address. This information is used for identity verification and anti-money laundering (AML).

The USD Coin exchange may also complete the Know Your Customer (KYC) process. KYC verification aims to confirm your identity and prevent fraud.

In order for this to happen, you must upload identification documents. Examples include a passport, driver’s license, or government-issued ID card. Follow the instructions provided by the exchange to submit the necessary documents.

You then wait for the USDC exchange to verify your documents. This process could take anywhere from minutes to days.

Deposit funds

Look for the “Deposit” or “Funds” section. This is where you add money to your exchange wallet.

Consider the payment method you want to use. Crypto exchanges let you use credit cards, debit cards, and bank transfers. You can even use an eWallet like PayPal or Skrill.

Also, you can select from hundreds of cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH). Apart from the obvious options, altcoins such as Dogecoin (DOGE) and Solana (SOL) are popular. As are Tether (USDT), Binance Coin (BNB), and Bitcoin Cash (BCH).

Specify the amount you want to deposit. Double-check the details and ensure you’re comfortable with the deposit amount before proceeding.

The USD Coin exchange provides you with specific instructions on how to make the deposit. For fiat deposits, you may need to initiate a bank account transfer or follow the steps for card payments. For cryptocurrency deposits, you receive a unique wallet address to which you must send the funds.

After initiating the deposit, wait for the funds to appear in your exchange account. The waiting time varies depending on the deposit method and cryptocurrency network congestion.

Placing an order to buy USD Coin

Next, navigate to the trading section of the exchange. Look for the trading pairs that include USDC. For example, search for the USDC/USD trading pair if you deposited USD.

The main order types are as follows.

Market order

This type of order buys USDC at the current market price. You specify the amount of USDC you want to buy. The exchange will execute the trade instantly at the best available price.

Limit order

You can set a specific value you want to buy USDC at with a limit order. If the market reaches your specified price, the trade is executed.

Double-check the order details to ensure they are accurate. Verify the amount of USDC you are purchasing and the total cost of the transaction. Take note of fees.

Once satisfied with the order details, click the “Buy” or “Place Order” button to submit your order.

If you place a market order, the trade is executed almost instantly at the current market price. If you place a limit order, you must wait until the market reaches the specified price.

After the order takes place, the purchased USDC tokens are credited to your exchange account’s wallet. You can verify your USDC balance in the “Wallet” or “Funds” section of the exchange.

Withdrawing your money

This process involves transferring the USDC tokens you bought on the exchange to an external wallet.

Please ensure you have a compatible wallet that supports the storage of USDC. USD Coin is an ERC-20 token. This means it runs on the Ethereum blockchain.

Log into your cryptocurrency exchange account. Go to the “Withdrawal” section. Find the USDC withdrawal option.

In your external wallet, find and copy the USDC wallet address. Paste the wallet address into the “Recipient Address” field on the exchange’s withdrawal page.

Double-check the address to ensure it’s accurate. Remember, crypto transactions are irreversible. Sending the money to the wrong address means you lose it forever.

Specify the amount of USDC you want to withdraw. Some exchanges may also have a “Max” button that allows you to withdraw the entire USDC balance in your exchange wallet.

Carefully review the withdrawal details, including the withdrawal address and the amount. Ensure everything is correct before proceeding.

You may need to go through an additional layer of authentication before finalizing the withdrawal. This could include providing a verification code sent to your email or phone.

Once you know all the information is accurate, click the “Withdraw” or “Confirm” button. While the transaction can occur quickly, delays can occur. Bear this in mind before panicking!

After confirmation, check your external wallet to ensure the USDC tokens have been successfully transferred. You can use blockchain explorers to track the transaction and verify its status.

Storing Your Crypto: A Concise Guide

You have several storage options for USD Coin. Each one offers different levels of security, accessibility, and convenience.

Hardware wallets

Hardware wallets are physical devices specifically designed to securely store cryptos offline. Examples include Ledger Nano S/X, Trezor, and KeepKey.

This type of wallet offers excellent security. Your private keys never leave the device, reducing the risk of online threats.

Software wallets

Software wallets are applications or software programs installed on your computer, smartphone, or tablet. Some popular USDC-compatible software wallets include MetaMask, MyEtherWallet, and Coinbase Wallet.

While convenient, software wallets are more vulnerable to online attacks than hardware ones.

Centralized exchanges

Many cryptocurrency exchanges, such as Coinbase, Binance, and Kraken, offer wallets for storing USDC. While convenient for trading, using exchange wallets for long-term storage is not recommended due to security risks.

If an exchange is hacked or experiences other issues, your funds could be at risk.

Decentralized exchanges

A decentralized crypto exchange (DEX) operates without a central authority or intermediary. It uses smart contracts and blockchain technology to directly enable peer-to-peer (P2P) trading between users.

You don’t technically “store” your coins in the same way as you would on a centralized exchange or a personal wallet.

Instead, your funds remain under your control in your own cryptocurrency wallet.

Web wallets

Web wallets, accessible through web browsers, offer a convenient way of storing USDC online. Some web wallet providers, like Circle (the issuer of USDC), offer their own wallets.

However, online wallets are generally less secure than hardware or software wallets. This is because they are susceptible to hacking and phishing attacks.

Mobile apps

Mobile wallets are smartphone applications that let you store and manage USD Coin on your mobile device. Examples include Trust Wallet, Coinbase Wallet, and Coinomi.

Mobile wallets are convenient for everyday use, and offer better security than web wallets.

Cold storage and paper wallets

Cold storage refers to keeping your private keys offline. You usually keep them on a device disconnected from the Internet.

It provides a high level of security against online threats. But accessing your USDC for transactions is less convenient than “hot” wallets.

With paper wallets, you print your private keys and public addresses on a physical piece of paper. This method keeps your keys offline. Yet, storing the paper securely is essential to avoid loss or damage.

When choosing a storage option, consider the following factors:

  • The amount of USDC you plan to store
  • Your level of technical expertise
  • How frequently you need to access your funds
  • Your overall security requirements

Always prioritize security and opt for reputable wallet providers to safeguard your USDC holdings effectively.

Final Thoughts on How To Buy USD Coin

In conclusion, USD Coin (USDC) stands out as a stablecoin. It offers stability by being pegged to the US Dollar, appealing to investors seeking the benefits of cryptocurrency without its typical volatility. The increased interest in cryptocurrencies has driven the demand for USDC, prompting a guide to buying it, covering its nature, purchase process, and secure storage methods.

Storage options range from hardware and software wallets to exchanges, decentralized exchanges (DEXs), web wallets, mobile apps, and cold storage methods. Each of those comes with distinct features of security, accessibility, and convenience. While offering stability and ease of purchase, it’s essential to note that investing in USDC isn’t risk-free.

Frequently Asked Questions

Is it safe to buy USD Coin in 2024?

Yes. Buying USD Coin (USDC) in 2024 is considered a safe investment. USDC is a stablecoin that is pegged to the value of the US dollar, meaning it has next to no volatility.

It is backed by a reserve of actual US dollars held in audited bank accounts, ensuring transparency and stability. Additionally, USDC operates on a blockchain network that employs robust security measures, making it highly resistant to hacking or fraudulent activities.

How do I create a wallet for holding USD Coin?

To create a wallet for holding USD Coin (USDC) in 2024, you can follow these steps. First, choose a reputable cryptocurrency exchange that supports USDC. Next, sign up for an account on the exchange and complete any necessary verification processes.

Once your account is set up, navigate to the wallet section and select “Create New Wallet.” Choose USDC as the desired currency and generate a unique wallet address. Make sure to securely store your wallet’s private key or mnemonic phrase, as this will be essential for accessing your funds. Finally, transfer your desired amount of USDC to your newly created wallet address.

Are there any regulations or restrictions for buying USD Coin?

The purchase of USD Coin (USDC) could be subject to certain regulations and restrictions to ensure the stability and security of the cryptocurrency market. The regulatory framework for USDC acquisition involves a two-step process. Individuals must complete a Know Your Customer (KYC) verification, which includes providing identification documents and proof of address.

This step ensures compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Secondly, there are limitations on the maximum amount of USDC that can be purchased within a specified time period to prevent market manipulation and maintain financial stability.

Can I buy USD Coin with other cryptocurrencies?

Yes you can. Buying USD Coin (USDC) with other cryptocurrencies has become convenient and widely accessible. Thanks to the continuous development of decentralized exchanges (DEXs) and advanced blockchain technology, you can now easily swap your preferred cryptocurrencies for USDC.

The same can also be said of most centralized exchanges. Make sure the exchange you intend to use has trading available for the USDC trading pair of your chosen cryptocurrency.

Are there any fees associated with buying and selling USD Coin in 2024?

The process of buying and selling USD Coin (USDC) has become streamlined and cost-effective. The decentralized nature of USDC allows for direct peer-to-peer transfers without the need for intermediaries or third-party platforms, eliminating any potential fees.

Additionally, the widespread adoption of USDC has led to increased competition among exchanges, resulting in reduced transaction costs. As a result, individuals can now buy and sell USD Coin without incurring any fees. Note that because USDC is an ERC-20 token running on the Ethereum network, there will be transaction fees for sending USDC between wallets.

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