USD (USD) is a stablecoin designed to maintain a stable value against the US dollar. Stablecoins like USD are not considered an investment, but offer liquidity to cryptocurrency traders looking to seamlessly buy other cryptocurrencies on exchanges. .
In their report, published by the American magazine "Forbes", the writers Erica Napolitano and Varane Powell explained what this digital currency is and how it can be bought and benefited from.
What is the USD currency?
The authors say that it is a stablecoin designed to maintain a stable value against the US dollar, and it provides liquidity to cryptocurrency traders looking to buy other digital currencies seamlessly on exchanges, a currency backed by the “Ethereum” platform, and its value is pegged to the US dollar, meaning that One currency must always be equal to one dollar.
The two writers add that there are more than 19,000 cryptocurrency projects, but the USD currency is one of the largest.
In fact, the USD is the second largest stablecoin after Tether with a market capitalization of over $51 billion, and it also has the fourth largest market cap among all cryptocurrencies.
The USD was issued in 2018 by the Center Consortium, founded by Circle and Coinbase, and was created as a regulated stablecoin “operating within laws and regulations.” Transfer American money” while working on the “Blockchain” technology (block chain).
Similar to the concerns raised about Tether;
The USD was highlighted last year for not backing every dollar coin with an asset or dollar equivalent, and the Center Consortium responded to these discoveries in August 2021, saying it would change the composition of the USD's reserve currency and that the pillars The basic currency will be held in short-term and fully US cash vaults.
The move now means that every $1 or equivalent in assets backs every USD currency.
For his part, Fabio Pizzotti, CEO of the crypto investment fund Iconium, says that “USD aims to provide all the advantages of a stablecoin as fully transparent to users, in light of its release in the wake of concerns raised about the lack of Tether for transparency.
USD currency in the digital economy
The authors reveal that USD investors generally use their reserves to earn passive income, and you can lend USD directly through Circle or using a wallet such as Ledger, and US coin holders can D also earn additional passive income with specialized online savings accounts designed exclusively for stablecoins.
Experts say stablecoins often get the highest returns because they maintain their expected value, and also can earn significant interest on your USD, much higher than a regular online savings account.
USD holders can use Bitcompare to find the most attractive returns currently on offer.
Where can you buy USD currency?
USD can be purchased from several different crypto exchanges, and USD can be exchanged for USD via Kraken or Gemini.
Since the USD is a stablecoin, it is not "correlated" in the true sense to other cryptocurrencies.
But there are some platforms that allow you to buy other cryptocurrencies such as “Bitcoin” and “Ethereum” using the “USD” currency, and these platforms include: “Binance.US” “Bitstamp” or KuCoin.
And if you want to use your USD to buy other cryptocurrencies like Litecoin or Dogecoin, you can do so on the KuCoin platform.
How can you buy USD currency?
If you are ready to buy USD coins and take the risk of investing in cryptocurrency, it only takes a few steps to get started:
Choose a cryptocurrency exchange platform
To buy USD you will need to use a cryptocurrency exchange through which you can buy and sell cryptocurrencies.
And you should check out a few different platforms to find the best cryptocurrency exchange for your needs.
buy usd coin
Once you've found the perfect platform, you'll be ready to buy USD.
Although the USD has kept its value stable so far, it remains a cryptocurrency and risks losing its value, so make sure you fund your account only with money you won't need for monthly expenses or emergencies.
Usd coin storage
Once you buy USD currency, there are a lot of different crypto wallets that you can use to store your coins.
Cold storage
: You can download encryption from the web to these drives and store it. Both Ledger and Arculus support USD.
Paper Wallets
: Paper wallets allow you to print a set of public and private keys and QR codes, which maintains the security of your data and protects it from potential intrusions.
Software Wallets:
You can also download crypto wallet software such as Exodus or Vibes directly to your computer or mobile device to store your USD.
Crypto Exchanges
: Many platforms offer customers a built-in crypto wallet to manage their crypto holdings on the site.
Users can also store their USD coins using a Circle account.
Should you buy a USD coin?
The stablecoins have taken a hit recently, causing volatility across the cryptocurrency market, and despite these volatility in the midst of the collapse of the TERRA USD stablecoin in May, the USD managed to hold its value against the dollar.
But cryptocurrency traders should not consider the USD as an investment, even though it has some advantages.
“The USD is not an inherently investment vehicle, but it serves its intended purpose well,” says Axel Nussbaumer, vice president of digital asset management at cryptocurrency firm Blockmetrix.
The authors conclude their report by saying that since the USD currency may be seen as more secure and reliable to overcome the fluctuations of the stablecoin compared to other currencies, current economic conditions must be taken into account, and because there is no investment without risk, so when buying USD coins “You have to consider your financial goals and see if the risks provide you with the right purchase.