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
With USDC, there’s little need to worry about coin price. One token equals 1 USD as long as the coin is pegged to the United States Dollar.
Buying this crypto is so easy; almost anyone can do it. That is, as long as digital currency is legal in your location.
You can even use a debit or credit card to buy USDC. With a large market cap and the backing of a major crypto exchange, this asset is considered one of the ‘safer’ bets in the industry.
