Understand What USDC (USD Coin) is and How it Differs From USDT

Cryptocurrency_ One form of crypto asset you should think about is the United States Dollar Coin, or simply USDC.

This is so that the USDC system can be categorized as a stablecoin, similar to USD Tether (USDT), where its value is comparatively stable and it is analogous to other currencies.

Therefore, USDC may be an option for OctoMate if it wants to make a different kind of investment in the market.

But how do USDT and USDC differ from one another? Read the rest of the article to find out!

Describe USDC

United States Dollar Coin, often known as USDC, is a relatively new sort of digital stablecoin whose value is tied to the US dollar.

As part of a partnership with Coinbase, Circle, an American financial services business, released this coin on September 26, 2018.

The CENTER Network, a framework with a governance structure, was created by these two businesses. Its goal is to promote the evolution and expansion of virtual currency.

The Ethereum system, a decentralized blockchain with a number of benefits for data security and transaction speeds, is the foundation upon which USDC is constructed.

Similar to USD Tether, USDC can serve as a substitute for other cryptocurrencies that are backed by the US dollar.

In a sense, USDC is a platform for issuing US dollar coins that give users access to services via an online public blockchain.

Actually, this is done to hasten, streamline, and widen the distribution of transactions made in US dollars.

The first stablecoin to be listed on coinbase is USDC itself. Now that it is becoming more and more popular, its liquidity is also rising quickly.

More than 80 nations around the world are now known to allow trade in USDC.

USDC Transaction System

To be clear about what USDC is, OctoMate must also understand how this coin works.

If you have previously owned crypto assets with the Ethereum system, you can integrate these types of assets with USDC.

You can also convert USDC tokens back into USD at any time. This is because the USDC issuance and exchange process utilize the ERC-20 smart contract.

This means that every 1 USDC can be exchanged for 1 US dollar. You also don't need to worry because the value of this asset is relatively stable and there is no risk of price fluctuations.

The management of USDC is also quite safe because the value per asset is stored in accounts with financial institutions controlled by the United States.

Well, here are some steps in tokenizing USD to USDC.

The user sends US dollar fiat currency to the issuing bank account

Through a smart contract, the issuer converts USDC into an equivalent amount

The issued USDC is then sent to the user, while the US dollars the issuer receives will be kept as a reserve.

How to Save USDC

The way to store USDC is like other crypto coins, namely in various types of crypto wallets. However, given that USDC is based on Ethereum, these coins can be stored in any ERC-20 compatible crypto wallet.

Some examples of crypto wallets for storing USDC are the Coinbase wallet, Atomic wallet, MetaMasd, and so on.

Difference between USDT and USDC

Then the question is, what is the difference between USDT and USDC? Although both are stablecoins, USDT and USDC are actually two different crypto assets.

When viewed from the process of buying and exchanging fiat currency, USDC is through a bank account, be it a circle or coinbase. This process is carried out without any conditions and usually takes 1 to 2 days.

Meanwhile, USD Tether is limited to one transaction per week. In addition, the minimum exchange in USDT is US$100,000 and is only through Tether Limited.

However, when it comes to liquidity, USDT is arguably superior. This is because USDT is the largest stablecoin in terms of market cap.

This makes USDT easier to find in various digital asset trades. In addition, USDT trading volume also tends to be higher than USDC.

Well, now you understand what USDC is and how it differs from USDT. USDC is a type of crypto asset with a value that tends to be stable compared to bitcoin.

So, are you interested in investing in the following assets? Or are you planning to invest in other crypto assets?