What is USDC and is it a safer alternative to Tether?

This chart indicates the historical change of the USD Coin to Tether conversion rate over the past 30 days. You don’t need to get verified specifically for the USDC to USDT pair. But you do need to pass verification when creating a new Changelly account. Your email confirmation will also come in handy when you need to change your password, check your transaction history, or update your account settings.

Tether is a tool that allows traders to protect profits, while staying invested in crypto. It allows you to keep your money on exchanges without subjecting yourself to volatile prices in bitcoin or other digital assets. If your customers are traders, then perhaps USDT is the right choice. USDT has nearly $69 billion in supply and accounts for almost 50% of the total stablecoin supply. As mentioned earlier, the total supply of USDT isn’t growing as quickly as the total supply of all stablecoins — in the question of USDT vs. USDC, the latter seems to be catching up. However, for now, USDT is the third biggest cryptocurrency by market cap and is the reigning king of stablecoins. As of June 16, 2022, USDC is a top-10 coin on every exchange. It has $54.4 billion in total supply (up from $518 million at the start of 2020 and $26.8 billion in July of 2021), and holds a 35% market share for all stablecoins.

What is USDT?

With stablecoin, it is easy to calculate because of the 1 to 1 ratio. Receiving 100 USDT is the equivalent of receiving $100 cash. For intermittent trading and daily use though, USD Coin is certainly one of the most trustworthy stablecoin options out there. Below you’ll find a table of contents that’ll give a good impression on what we’re going to dive deep into and what to expect in the rest of this post. Keep in mind none of the below is financial advice, you must make your own independent risk-assessment. “This likely reflects the fact that only large holders are generally privileged to redeem USDT and mint new USDC to capture an arbitrage,” Kyle Waters, analyst at CoinMetrics, wrote in the report. “But it might also be the case that some large accounts are de-risking their holdings, turning to the perceived assurances of USDC’s monthly attestations and full-reserve backing.” Great platform, really easy to use, nothing complicated, everything a beginner or pro trading crypto would want.

• Overall if you MUST trade into USDT to trade the altcoins you want from a stable-coin, then go for it — we’d just avoid holding USDT for long periods of time such as during a market correction.
• Now you can send money to the generated address, or just copy the address link and send it to the user from who you are waiting for the funds from.
• This trend is determined by the technical indicators on our Tether price prediction page.
• Some traders have used a strategy of purchasing stablecoins and then using them to “purchase”, or trade for, other cryptocurrencies.
• Your email confirmation will also come in handy when you need to change your password, check your transaction history, or update your account settings.
• This is why many have switched to USDC, which is fully backed and regulated.

Most notably, USDT has a daily 24 hour volume of well over $60 billion, far more than even Bitcoin. Therefore, it’s the most liquid cryptocurrency in the world. As the first cryptocurrency, bitcoin paved the way for blockchain payments. In 2010, Laszlo Hanyecz bought two pizzas from Papa John’s for 10,000 bitcoin (worth $30 at the time) which is thought to be the first instance that crypto was used to pay for goods or services. In today’s value of bitcoin, those pizzas cost approximately $350 million. 3) The issuer sends the requested amount of USD from its reserves back to the user’s bank account. The user receives the net amount equivalent to the one in USDC tokens, minus all incurred fees). Coinbase Pro, the company’s full-fledged trading platform, allows traders to exchange dozens of cryptocurrencies against USDC.

USD Coin

Ethereum Stack Exchange is a question and answer site for users of Ethereum, the decentralized application platform and smart contract enabled blockchain. Tether released the first breakdown of their reserves on March 31, 2021 USDC, on the other hand, is playing it safe by complying in order to position themselves for potential future government regulations. USDT sits in the 4th position of all coins in market cap at $74 billion. It is the most heavily traded coin with a 7-day trade volume of $93.9 billion and $2.3 trillion in the past 30 days, more than double that of Bitcoin. With multi-billion-dollar market capitalizations, USDT and USDC are the most popular stablecoins used today. They are a good option if you want to convert a stablecoin into fiat. Attacking various stablecoins has been a mainstay in the crypto industry, it happens every now and then. Sometimes it proves justified, the stablecoin de-peggs and its holders may lose money permanently. That means that if you hold a stablecoin, you are taking a risk.

6.2 The Platform does not provide any guarantee for the Web Page. Without prejudice to the foregoing, the Platform does not guarantee that the Web Page meets your requirements or suits your purpose. The Web Privacy Policy is provided separately and describes how the Platform collects, stores, discloses, and uses information involving your privacy. You agree that the Platform can use your information in accordance with the Terms and Conditions of the Privacy Policy of the Web Page.

1.6 It is our responsibility to maintain a proper market order; and as such, we may, at our sole discretion, halt trading on the Website in the event of any market disruption or any other relevant external event. We shall not be held liable for any claimed damages or loss of profits allegedly caused by our halting trading. From the list of assets shown in a table locate “United States Dollar” and then click on “Convert to USDC”. 1 In Exodus, a) select the FTX portfolio you want to withdraw USDC from, then b) click on the Wallet icon. 1 In Exodus, a) select the FTX portfolio you want to deposit USDC, BUSD, USDP, TUSD, or HUSD in, then b) click on the Wallet icon. While you can’t deposit USD directly into the USD wallet in your FTX portfolio in Exodus, you can deposit USD into FTX and it will reflect in the “USD” wallet in your FTX portfolio in Exodus. USDC is most commonly used by institutions in the United States . If your customers are businesses, then you’ll likely want to use USDC to send invoices to your customers. If you’re a Gilded user working with Gilded’s Coinbase integration, it also makes sense to use USDC.

The former Huobi Global, mainly provides trading of mature and well-performing blockchain assets with high quality. The User shall bear the risks arising from using the information and content of the Web Page. E) The Platform does not guarantee that the use of the Web Page will be free from disturbance or error. The Platform assumes no responsibility for any such interference that prevents you from accessing or using the Web Page and Services. 1.4 We reserve the right to close your Account at our sole discretion with preliminary notification to you.

What are the fees to convert USD Coin to Tether?

Many crypto traders utilize stablecoins in order to remain in the ecosystem by holding an asset with a constant price. A less volatile digital currency by design, you can exchange them 24 hours a day without having to cash out to your bank. These tokens will always hold their current value, as long as the backing ratio remains true. Stablecoins were developed to tether the price of certain cryptocurrencies to the value of a fiat currency, such as the dollar. Some traders have used a strategy of purchasing stablecoins and then using them to “purchase”, or trade for, other cryptocurrencies. They are often surprised when they see a capital gain or loss incurred when these coins are traded for other coins or sold based on their price when purchased/sold. Read more about usd to ethereum price here. Phemex doesn’t trade or list any markets denominated in USD, it’s just stablecoins.

As of June 2022, Tether’s USDT comprised approximately 45% of the market at $69 billion in total supply. On the other hand, USDC is growing rapidly and sits behind Tether at 35% of the market and nearly $54 billion in total supply. In a nutshell, USD Coin is a service to tokenize US dollars and facilitate their use over the internet and public blockchains. Besides, USDC tokens can be changed back to USD at any time. The execution of issuing and redeeming USDC tokens is ensured with ERC-20 smart contract. Because the IRS treats it like a sale or exchange of an asset, which is subject to capital gains tax. Technically, if the stablecoin is pegged to the dollar at a 1 to 1 ratio, the capital gain is zero and there is no tax owed. But the transaction must still be recorded and reported, just like if you were buying and selling a stock at zero net gain/loss. Otherwise, you risk attracting an IRS audit to determine whether you underreported taxable income.

It’s quickly become one of the largest coins, and it looks like it’s continuing to build serious momentum. While many top cryptocurrencies are still in price discovery, you can take advantage of the benefits of blockchain payments without subjecting yourself to volatility or complicated tax calculations. Stablecoins, like USDT or USDC, allow institutions, https://www.beaxy.com/exchange/btc-usd/ traders, and individuals to hold crypto without dealing with the highs and lows of bitcoin or ether. When traders and investors exit their crypto asset positions, they usually convert them into stablecoins before taking them off exchanges as fiat. That exodus has been going on for the past six weeks, causing the stablecoin market share to grow.