What is USD Coin and is it a safe investment? This article will answer all of your questions.
What is USD COIN?
USD Coin (or USDC) is a stablecoin priced to the US dollar, effectively a “digital dollar” trackable and traceable on the blockchain. Every USD Coin is worth $1.00 and is redeemable on a 1:1 basis with US dollars. When you spend or use USD Coin in your Voyager account, your transactions are processed and secured across our network.
USD Coin is compatible with multiple blockchain platforms, including Ethereum, Algorand, Solana, Stellar, and TRON. Voyager uses the Ethereum-based USD Coin.
Ultimately, using USD Coin with the new Voyager Debit Card means your money can move faster, more securely, and earn you more rewards.
USD Coin a Good Investment in2021?
As with any coin, the risk is always there so it’s important to take advantage of the benefits offered by the likes of services like Voyager who offer rewards just for holding the coins.
As for the security Reddit user, ykliu had this to say “USDC (or any stablecoin) is a bridge between traditional financial system (that uses fiat currencies like the USD) and cryptosystems.
In decentralized finance or any blockchain native system, it is the only way to use a fiat denominated token. For example on Ethereum, you need to have an ERC20 representation of USD, which is USDC. You can’t just send 100 USD to ethereum directly by a wire transfer.
It’s purpose on centralized exchanges/institutions may be less clear, as it’s just as easy to trade using actual USD. However, they play a role in maintaining its peg to the fiat currency. For example, Coinbase partners with Circle that issues USDC. Therefore, you can always buy/sell USDC for EXACTLY 1.00 USD through Coinbase. Trader (mostly robot) will then arbitrage the price of USDC across all other exchanges to near 1USD. In other words, if someone tried to sell 1 USDC for a price significantly different than 1 USD, these bots would quickly eat up that order and trade it at Coinbase for the guaranteed 1 USD price.”
Earn USD Coin rewards with the Voyager Debit Card
Here is how USD Coin works with the Voyager Debit Card:
Deposit cash from your bank account into your Voyager account. Under the new Debit tab, follow the instructions to purchase USD Coin with your cash. Remember, Voyager doesn’t charge any fees when you purchase USD Coin with dollars (i.e. if you purchase $100, you receive exactly 100 USD Coins). Use your Voyager Debit Card everywhere debit Mastercard is accepted.
Now for the best part: Voyager Debit Card rewards you differently than a typical debit or credit card. Simply hold USD Coin in your Voyager portfolio, and you’ll earn up to 9% annual rewards, paid monthly into your account. In other words, you’re rewarded just for holding.
When you use your Voyager Debit Card to make everyday purchases, Voyager uses the rewards-earning USD Coin in your account to process payments in real-time.
Earn even more as a Voyager Loyalty Program member
Every Voyager Debit Card user is eligible to earn up to 9% annual rewards on their USD Coin balance. But, when you join the Voyager Loyalty Program, you can boost your rewards even further. Depending on your tier, you can earn an additional 1.5% annual reward on your USD Coin balance.
In addition, Loyalty Program members earn extra crypto-back on any purchase made with the Voyager Debit Card. That crypto-back shows up in Loyalty member accounts with rewards payouts each month. Learn more about joining the Voyager Loyalty Program.
BY USING THIS CARD YOU AGREE WITH THE TERMS AND CONDITIONS OF THE CARDHOLDER AGREEMENT AND ANY APPLICABLE FEE SCHEDULE. This card is issued by Metropolitan Commercial Bank (Member FDIC) pursuant to a license from Mastercard International. “Metropolitan Commercial Bank” and “Metropolitan” are registered trademarks of Metropolitan Commercial Bank ©2014.
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