Stablecoins are key for transactions in the world of cryptocurrencies.
Stablecoins also provide a way to turn cash into crypto, and vice versa, without the risk of volatility commonly associated with the majority of cryptocurrencies. They are usually pegged to another asset and typically mirror that asset’s value.
For example, the leading stablecoin, USDC, is pegged to the U.S. dollar at $1 for every $USDC stablecoin.
Some of the use cases for stablecoins include:
With stablecoins, you can exchange different cryptocurencies without cashing out to a bank
Affordable cross -border payments to anyone
Used to make payments in crypto shielding payees from volatility
Stablecoins are used to earn yield by staking on different defi platforms
Since USDC was co-founded by Coinbase, the listed exchange is one of the preferred places to purchase the stablecoin.
Here are the steps to acquire the USDC stablecoin on Coinbase, the leading crypto exchange in the United States:
1. Open a Coinbase Account
Download the Coinbase app and start the signup process.
You will need a valid ID and you may be asked for proof of address in order to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.
2. Add a Payment Method
Tap on the payment method box and connect a payment method. You can use a bank account, debit card or initiate a wire.
In 2021, Coinbase announced that it was accepting cards in Kenya and Ghana, allowing debit card holders in those countries to be able to make payments.
3. Start a Trade
Find the ‘Trade’ button at the bottom center of the app, where there is a menu. This will reveal a page showing different assets with categories such as “Top movers” and “Tradeable.”
4. Select USDC From the List of Assets
Search for USD Coin by typing “USD Coin” into the search bar. When you see USD Coin show up in the results, tap it to open up the purchase screen.
5. Enter How Much You Want to Buy
Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into a USD Coin amount.
6. Complete Trade
Tap “Preview Buy” when ready.
You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase.
That’s it, you’ve bought USD Coin!
With that you now hold your first USDC. You can send this to other wallets by copying their addresses and sending it directly to them.