Here is an article on USD Coin (USDC) as a stable asset for merchants:
USD corner (USDC): A stable asset for merchants
In the world of cryptocurrency trading, a stable asset has drawn significant attention lately. The USDC, or USD part, is a largely recognized and respected stablecoin which has been at the forefront of cryptocurrency stability and security. As a stable active, the USDC offers traders the peace of mind when making trades, because it guarantees that their capital is supported by tangible assets.
What is the USDC?
The USDC is a decentralized stable and peer-to-peer which was created in 2018 by SBI Holdings, LTD., a Japanese multinational portfolio company. The name of the “USD Coin” project reflects its ardent relationship with the US dollar (USD). The USDC has gained popularity among cryptocurrency merchants because of its stability, low volatility and ease of use.
How does USDC work?
The USDC is a type of stablecoin which uses algorithms to maintain its value fixed against the USD. This means that the value of the USDC remains relatively constant, without significant fluctuations compared to the price of the USD market. To guarantee stability, the USDC has a 100% fixed reserve requirement – which means that each USDC held is supported by exactly 1 USD.
Advantages for merchants
The advantages of using the USDC as a stable asset are numerous:
* Low volatility : The USDC algorithmic jump ensures minimum price fluctuations, making it an attractive choice for traders who wish to minimize their losses due to market volatility.
* Stability
: By maintaining its value fixed against the USD, the USDC gives merchants the confidence that their capital is secure and stable.
* Easy to exchange : USDC has a simple and simple commercial experience, allowing merchants to buy or easily sell the assets via various online exchanges.
* No counterpart risk : Unlike traditional fiduciary currencies, the USDC does not imply a counterpart risk, which means that traders do not have to worry about being held responsible for transactions with other parties.
How traders use USD Coin (USDC)
Traders use the USDC in various ways:
* Hodling : Many traders choose to keep their USDC assets for long periods, which allows them to benefit from the stability of the assets and the low volatility.
* Position trading : Some traders use the USDC as a basic currency for position trading, the purchase or sale of other cryptocurrencies while retaining their USDC positions.
* Swaps and Lending : USDC can be used as a guarantee in various financial instruments, such as Swaps and loan platforms.
Conclusion
In conclusion, the USD part (USDC) is an attractive stable asset for merchants because of its stability, low volatility, ease of use and safety. By maintaining a value fixed compared to the US dollar (USD), the USDC offers traders the peace of mind during the realization of the professions. Whether you are a seasoned trader or start, USDC is really worth it to be considered your stable asset.
Non-responsibility clause
This article is for information purposes only and should not be considered as investment advice. Cryptocurrency trade has significant risks, including the risk of loss. Before exchanging, make sure to:
- Perform in -depth research
- Set clear trading objectives and risk management strategies
- Use appropriate trading techniques
- Monitor your businesses and adjust your strategy if necessary