Crypto academy week7/Homework by proffesor yohan2on/stable coins-usdc

in SteemitCryptoAcademylast year (edited)

Hi friends, In this Today lecture from @yohan2on I learn the benefits of stable coins at the same time for long holding stable coins not suitable. Because it's the price not get any chance at any market conditions. In a sudden crypto market crash, stable coins play a big role. It's a voice of our loss for chafing our assets into those.

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Stablecoins are not only a tool for taking profits from crypto trading but also an excellent means of payment. It's all about the absence of stablecoin price volatility and near-zero transaction fees. Many market participants are accustomed to using Tether; however, due to the bad reputation of the issuer, traders began to look for alternatives. One of these is the stablecoin USD Coin.

What is USD Coin (USDC)
USD Coin is a cryptocurrency whose price is pegged to the value of the US dollar. The first coins were issued in October 2018 by three companies, Circle (Circle Internet Financial), Coinbase, and the Center Consortium. They didn't bother developing their own blockchain and used Ethereum, so USDC is an ERC-20 token.
The Circle team assured market participants that USD Coin is significantly different from all existing stablecoins. The USDC price is rigidly pegged to the US dollar, but in fact, it can both rise and fall. For example, in January 2020, the USDC price increased by 5% and fell by 4% in March.

However, similar jumps are observed in other stablecoins, so you can turn a blind eye to this shortcoming. The developers of USD Coin set a goal for themselves - to increase the safety of investors, to reduce the risks of trading, to enable them to make payments in a stable asset, and they coped with the task.

Advantages of USD Coin

Extensive experience of the Circle and Coinbase team
Collaboration with well-known representatives of the crypto industry and major banks, including Goldman Sachs.
USDC support by many top crypto exchanges
Circle Issuing Company Transparency
100% backed by the US dollar
Monthly publication of the USDC financial report
Open source
Compliance with US Regulatory Requirements

Let's move on to the disadvantages:
Lack of original idea. This is not the first or the last stablecoin to be backed by the US dollar.
Huge competition in the stablecoin market
It is impossible to predict the future of an asset.

Where to buy and store USD Coin?
USDC is supported by most crypto exchanges, so there shouldn't be any problems buying or selling. The greatest liquidity can be found on Binance, so I recommend using it.
In terms of wallets, USD Coin is an ERC-20 token, so it can be stored on MyEtherWallet, MetaMask, Eidoo, ImToken, or Ledger Nano S. Which one to choose? It's up to you to decide, but all these wallets are reliable and proven over the years.

Circle and Coinbase have major partners and plans to become leaders in the stablecoin market. USD Coin has all the main advantages of blockchain and meets all banking standards. Stablecoin presents opportunities for both institutional investors, but also for ordinary investors and is also great for taking profits from crypto trading.


Hi @yinkaknl

Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.

Good work. Well done with your research on USDC

Homework task

Thanks for your time and efforts in teaching us about stable coins

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