Should You Invest in USD Coin?

USD Coin stands out from the other cryptocurrencies of today with a more stable price, providing peace of mind for those who want to get into digital currencies without all the risk. 

Get the details on the USD Coin (USDC) price today, as well as some background information on the cryptocurrency, so you can decide whether you should buy-in.

  • USDC
    USD Coin
  • Price
    $ 1.00
  • Change
  • Marketcap
    $ 53.09 B

You should buy USD Coin if you’ve been interested in buying cryptocurrencies but don’t know where to start or want more security than some other coins provide. 

However, you should take the time to research the cryptocurrency, understand its price today and historically, and learn what makes the coin so unique and secure before purchasing. 

  • Do you want more stability from your cryptocurrency investments?
  • Are you curious about the world of digital currencies and blockchain networks?
  • Are you tired of investing in cryptocurrencies that crash?

On this page, you’ll find all the most important details regarding USDC, its founders, network, price, and unique features.

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What is USD Coin (USDC)?

USD Coin is a stablecoin cryptocurrency created by fintech firm Circle and crypto exchange platform Coinbase in 2018. As a stablecoin, USDC has a 1:1 value with the US Dollar. 

For every USDC someone owns, that's equivalent to one US dollar. And somewhere, there is a US dollar for every USDC in a dedicated banking account. This fixed value adds extra stability to the market. 

Because USDC is stable, it’s a popular way to invest in cryptocurrency without the risk and volatility of the other popular coins on the market like Bitcoin or Dogecoin.

The goal of USDC is to make transactions faster (at the speed of the Internet) and more affordable than other payment types while reducing overall cryptocurrency market volatility.

Who Are the Founders of USD Coin?

USD Coin was not necessarily founded as it is not a business, but it was created as a joint venture between cryptocurrency exchange platform Coinbase and Circle, a Boston-based crypto fintech organization. 

Together, these firms create a consortium known as CENTRE, which governs USDC.

Circle comes backed by many renowned companies, like Goldman Sachs. It initially started back in 2013, intending to create a new way to send money both quickly and easily. 

It has since expanded its products and services into cryptocurrency, ultimately raising hundreds of millions in venture capital funding for USDC and opening trading up for the coin in 85 different countries.

How Much USD Coins Are in Circulation?

As of January 2021, there was $4.7 billion in USDC in circulation. 

However, that number expanded exponentially as the year went on. In June 2021, Circle released a report on the stablecoin indicating that circulation grew by over 2,600%, reaching over 22 billion coins.

Today, USDC has reached a market cap of $27.407 billion.

While most cryptocurrencies are mined, USDC is not. It can be purchased using regular US dollars on most of the major cryptocurrency exchanges. If you’re interested in investing in USDC, you can find it as Algorand ASA, Ethereum ERC-20, and Solana SPL tokens. 

Every time someone buys a USD coin or converts currency into a USD coin, a new coin is minted, and another dollar is added to the reserve backing USDC.

The process of getting it is simple: you must first meet Know Your Customer (KYC) requirements, and then you can make a wire transfer from your bank account. The money wired then gets transferred into USDC, which can be used to trade for other cryptocurrencies.

If you’d like, you can also convert the USDC back into dollars, which follows the same path in reverse to get wired back into your bank account.

How is USD Coin Network Secured?

USD Coins that are currently in circulation are technically ERC-20 tokens, which means they are found on Ethereum’s blockchain. This presents a significant benefit of network security.

It also means they can be integrated with any application that is based on Ethereum. 

Essentially, USD Coin combines the security that typical crypto-blockchain tech provides with the stability of the US dollar.

Stablecoins also naturally come with more security and stability than other more volatile cryptocurrencies like Bitcoin. This additional stability comes from the fact that real US dollars are being held somewhere in reserve by CENTRE. 

Plus, there’s the added security provided by Goldman Sachs, which backs CENTRE.

It is also regulated by the US government’s Financial Crimes Enforcement Network to combat money laundering.

What Makes USD Coin Unique?

Like Tether and other stablecoins, USD Coin is unique in that the price does not fluctuate despite other volatile markets for cryptocurrencies. 

While it’s not the first (or the most popular) coin backed by the US dollar (that would be Tether), it’s earned a strong reputation due to its transparent auditing and funding. 

In comparison, Tether has come under fire for its strong claim of a real US dollar in reserve for every coin in circulation.

USD Coin is also unique in that it is regularly audited by Grant Thornton, which is one of the world’s top ten accounting firms.

Finally, it stands out in its speed. While transferring, sending, or purchasing with US dollars can take a long time getting caught up in banks and other financial institutions, USD Coin offers lightning-fast speed. 

It essentially combines the stability (and general desirability) of the dollar with the speed and ease of use of crypto.

USD Coin Alternatives

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usd-coinUSD Coin
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binance-usdBinance USD
$ 1.000.5%
$ 0.5068093.99%
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$ 0.0840072.74%

Should I Invest in USD Coin?

USD Coin is an excellent option for those who are interested in investing in cryptocurrencies, but are held back by the volatility and insecurity that some of the most popular coins face.

Created by CENTRE Consortium (Circle and Coinbase), USDC offers unique stability with the backing of the US dollar and a steady price that doesn’t change over time. It also offers the speed and digital ease that cryptocurrencies provide and can be purchased on most blockchain platforms.

If you want to make your entrance into cryptocurrencies in a safe and reasoned way, consider learning more about USDC price and security before investing.

Want to earn interest on your stable coins? Click here to see the top 3 crypto savings accounts.

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