USD Coin Day Trading 2023 – Tutorial and Brokers
USD Coin, known by its ticker USDC, is a stablecoin that runs on the Ethereum, Stellar, Algorand, and Solana blockchains. Its aim is to provide a currency for the digital age and it has seen a surge in popularity – more than $1 billion of USDC were issued in the first year alone – making it the fastest-growing stablecoin in the world. As well as offering security for cryptocurrency traders, its stability has the potential to revolutionise the DeFi industry.
Continue reading to find out more about how the crypto works and whether it’s a good investment in 2023. We also list the best brokers and exchanges offering trading on USD Coin.
USD Coin Brokers
#1 - Webull
Webull offers trading on 8 popular cryptos through its Webull Pay app. With premium analysis tools, traders can review market trends and identify opportunities in a few taps.
"Webull is best for traders looking to buy and sell stocks on a user-friendly platform with zero commissions. The intuitive app also makes this broker great for mobile investors."- DayTrading Review Team
- Crypto Spread: Floating
- Crypto Lending: No
- Platforms: Desktop App, Web Terminal
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: SEC, FINRA
Webull is a US-regulated trading app that offers stocks, options, forex, cryptos, ETFs, fractional shares and more. The firm is authorized by the SEC and FINRA with a strong trust rating. Low fees, no minimum investment and generous welcome bonuses have made the discount broker popular with online investors.
- Promotions with free stocks
- Smart Advisor for auto investing
- Zero commissions or inactivity fees
- Narrow range of payment methods
- Sometimes sudden changes in trading conditions
- No MetaTrader 4 access
#2 - CEX.IO
CEX.IO offers hundreds of popular cryptocurrencies including big names like Bitcoin, Ethereum and Litecoin. The trading platform is well-designed with sophisticated charting and analysis tools. Traders can also reduce their monthly volumes through the tiered pricing structure.
"CEX.IO will serve a range of crypto investors looking to buy, sell, trade, hold and earn. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."- DayTrading Review Team
- Crypto Spread: 0.15% maker & 0.25% taker (Standard)
- Crypto Lending: Yes
- Platforms: TradingView
- Crypto Staking: Yes
- Minimum Deposit: $20
- Regulator: GFSC
CEX.IO is one-stop-shop for crypto investors where you can buy and sell popular digital tokens, speculate on prices with margin trading and earn rewards through staking. Since it launched in 2013, more than five million traders have deposited over $7.5 billion. CEX.IO is registered with the FinCEN in the US and the GFSC in the EU.
- 24/7 support with fast response times during tests
- Wide range of payment methods including PayPal
- Trusted crypto exchange with 5+ million users
- No demo account
- High deposit and withdrawal fees
- A maintenance fee applies after 12 months of no activity
#3 - AZAforex
Invest in 10 popular cryptos such as Bitcoin and Ethereum. A choice of six crypto account base currencies are available plus a welcome bonus for new traders.
"AZAforex is best for active forex traders looking for ECN pricing with high leverage up to 1:1000 and a sophisticated trading platform."- DayTrading Review Team
- Crypto Spread: Variable
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $1
AZAforex is a multi-asset broker founded in 2016. The brand offers a sophisticated proprietary platform, ECN trading and 40+ deposit methods. The brokerage has 120,000+ registered customers with copy trading and a VPS.
- 16 fiat and 6 crypto account base currencies
- Free VPS for VIP accounts
- Very high leverage up to 1:1000
- Unregulated broker reduces its safety score
- Limited educational content and resources
- No MetaTrader access
#4 - Nexo
Nexo traders can buy and sell 60+ cryptocurrencies using fiat, or trade between 500+ market pairs. The app functions as a crypto wallet, meaning that clients will own their own tokens but Nexo will have custody of them. Crypto assets can be transferred from the Nexo wallet. Fees are low and user security is high.
"Nexo is good for traders who want a straightforward way to access DeFi crypto markets and earn interest on their digital assets."- DayTrading Review Team
- Crypto Spread: N/A
- Crypto Lending: Yes
- Platforms: Own
- Crypto Staking: Yes
- Minimum Deposit: $10
- Regulator: ASIC, FCEN
Nexo is a crypto trading platform that also acts as a gateway to DeFi crypto functions such as staking, borrowing and lending. The platform supports 60+ crypto tokens, which can be purchased with a fiat on-ramp and traded in 500+ market pairs. The exchange operates a zero-fee policy allowing a set number of completely free withdrawals per month and fee-free trading.
- Allows users to borrow against their crypto holdings
- OTC trading capabilities
- Referral program with $25 in BTC
- High collateral requirement of 200% of the amount you wish to loan
- No crypto derivative trading
- Relatively small selection of crypto tokens which misses newer altcoins
#5 - Pionex
Make spot, future and leveraged trades on 120 cryptocurrencies via Pionex's proprietary platform with built-in trading bots and highly customizable automated trading options. On the negative side, the range of tokens is narrower than many alternatives.
"Pionex is an excellent option for crypto traders with an interest in cutting-edge AI like ChatGPT and automated trading."- DayTrading Review Team
- Crypto Spread: Market
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: FinCEN
Pionex is a crypto trading platform that specializes in trading robots, offering a variety of ready made bots and strategies to traders as well as integrated AI to help customize a strategy or come up with your own. These can be used on spot crypto markets as well as crypto futures.
- 40+ cryptocurrency funding coins accepted
- Low trading fees compared with other major exchanges at 0.05% maker and taker
- Powerful integrated AI chatbot 'PionexGPT' helps users programme trading bots on Pine script
- Withdrawal fees and limits may apply
- Weak regulatory oversight raises safety concerns
- Limited contact options
USD Coin Explained
USD Coin was launched in September 2018 and was developed by Centre Consortium, a joint venture by peer-to-peer payment services company Circle and cryptocurrency exchange Coinbase. The goal of the founders was to create an ecosystem in which USDC is accepted by as many wallets, exchanges and service providers as possible.
As a stablecoin, USD Coin is tied to the U.S. Dollar and redeemable on a 1:1 basis. It is issued by regulated financial institutions and backed by fully reserved assets which are audited by Grant Thornton, LLP.
In recent years, USD Coin has seen an explosion in popularity due to the rise of decentralised finance and driven by the currency’s guarantee that users can withdraw 1 USDC and receive $1 in return. USD Coins are ERC-20 tokens, found on the Ethereum blockchain, which means the currency can easily be integrated with any Ether-based application.
Major accounting firm, Grant Thornton, LLP, verifies the amount of cash that is held in reserve and ensures this matches up with the number of tokens in circulation. They issue reports on those holdings every month. Furthermore, Centre and Coinbase are well-funded and regulated organisations which gives the future USD Coin an element of certainty other digital currencies lack.
In March of 2021, Visa announced that it would begin using USDC to carry out transactions on its payment network.
Similar projects to USD Coin include Tether (USDT), TrueUSD (TUSD), Gemini Dollar (GUSD), Paxos Standard Token (PAX) and Dai (DAI), which are all ERC-20 stablecoins pegged to the U.S. Dollar.
How Does USD Coin Work?
Circle guarantees that every USD Coin is backed with a U.S. Dollar in a process which is known as tokenisation. This is a simple, three-step process:
- A user deposits cash to the token issuer’s bank account
- The issuer uses a USD Coin smart contract to create an equivalent amount of USD Coin
- The deposited cash is held in reserve, while the user receives a newly minted USD Coin. This ensures there is always 1 USD held for every USD Coin, which gives it its stability
Redeeming your USD Coin for fiat cash is just as straightforward:
- Firstly, a user sends a request to redeem their USDC for USD
- The issuer again uses the USDC smart contract to exchange the tokens for USD and takes the equivalent amount of tokens out of circulation
- The user’s bank account is then deposited with the requested amount of USD directly from the reserves. The user will receive the equivalent amount of USD Coin requested, minus any fees that have been incurred
USD Coin Chart
Benefits Of Trading USD Coin
- Stability – Centre’s pioneering technology for fiat-backed stablecoins brings stability to cryptocurrency trading. Confidence and security in USDC are delivered by proving that U.S. dollars are being held in reserve. In a market renowned for its extreme volatility, traders can be reassured knowing that in holding USDC, you are in possession of a fiat-backed currency that is regularly audited.
- Accessibility – Holding USD Coin, unlike regular U.S. dollars, does not require a bank account and it doesn’t matter where you live. All you need is a mobile phone and you can send USD Coin around the world in seconds. Furthermore, as the crypto market is open for trading 24 hours a day, 365 days a year, it is possible to trade USD Coin with other cryptos while other major markets are closed for business.
- Leverage – One of the ways to maximise profits as a day trader is to use margin trading. Many brokers offer a range of leverage options on USD Coin which can increase exposure for greater gains. However, using multipliers increases risk and therefore potential losses and should be used responsibly.
- Liquidity – Another advantage of USD Coin being tied to the U.S. Dollar is its high liquidity. Unlike other cryptocurrencies, withdrawals at a rate of 1:1 to the U.S Dollar can be carried out with ease. High volumes also suit multiple trading strategies.
Like other cryptocurrencies, it is possible to mine USD Coin. However, these days it is important to research whether or not your setup will be capable of generating any profit. GPU miners use an incredible amount of electricity and can often result in losses rather than gains. The most efficient way to mine is by using an ASIC setup, however this hardware has become expensive – usually several thousand dollars for a decent setup.
Mining profitability calculators are a good way to find out what hardware is capable of generating profits and can easily be found online.
How To Buy & Store USD Coin
Coinbase, one of the most renowned crypto brokers on the market, was a founding partner of USD Coin so it is no surprise they are one of the most enthusiastic proponents of the currency. Coinbase users in the U.S.A (excluding residents of Hawaii) are eligible for monthly rewards earned for the days in which you have a balance of at least $1 of USDC on Coinbase. The higher the balance, the more rewards you earn.
However, Coinbase is not the only exchange where users can buy and trade USDC. The currency is now widely supported on popular platforms such as Binance (paired with BTC, BNB) and Poloniex (paired with BTC, ETH, XRP, BHC, STR, LTC, ZEC, XMR, DOGE).
Whether you decide to buy, sell or mine USD Coin, you will need to have somewhere to store it. As mentioned earlier, USDC follows the ERC-20 standard and can therefore be used with any app that supports the Ethereum blockchain. This means that digital assets can now be bought and traded using a stable digital dollar on any platform that supports the ERC-20 standard.
The three most popular types of ERC-20 wallets used today are hardware wallets, software wallets, and exchange wallets:
- Exchange wallets are by far the easiest setup but offer the least security. Most crypto exchanges and brokers offer their own in-built wallet service and require some basic KYC checks.
- A hardware wallet is the most secure option for storing your crypto. You will need to purchase one and connect it to your PC via a cable provided. Then follow the manufacturer’s installation instructions and enter your PIN code and recovery phrase. Make sure to keep these written down in the event of loss, theft or forgetfulness.
- Software wallets come in desktop, mobile and online variants and are the happy medium between security and convenience.
Choosing An Exchange
When deciding which crypto broker to go for there are a number of factors to consider:
- Fees – Charges vary drastically from broker to broker and can take many forms such as commission, overnight fees or percentage cuts of earnings. Research is key to finding a broker with attractive fees.
- Leverage – Different platforms offer a range of leverage options for USD Coin. High leverage options are an enticing route to maximising profits when trading, but can also result in higher losses. Go for a broker that offers low-interest rates when trading with leverage.
- Accounts – Most platforms offer a tiered account system in which different features and rewards are available on each level. Although the cheapest option might seem the most appealing, more advanced options may increase profit in the long term. Good advice is to look for brokers who offer customisability, competitive spreads, and straightforward withdrawals.
- Customer service – The cryptocurrency market is booming and brokers are expanding at an extraordinary rate to meet the needs of their customers. With trading open 24/7 and markets being highly volatile, it is important to find a broker with around the clock customer service provisions. Many brokers offer a live chat helpline and phone support, however responsiveness and waiting times vary. Check out customer service reviews online when considering a broker to trade USD Coin.
- Regulation – Your options as a trader vary depending on where in the world you are. Regulation of cryptocurrency trading is different in every country, so make sure you know what the limits are where you live. In the UK for example, as of January 2021, regulatory changes prohibit speculation on crypto prices via leveraged products such as CFDs.
USD Coin is proving popular amongst crypto traders because of the level of trust, speed, and ease to move in and out of trades it provides. Check out our list of trading tips to help you start making moves:
- Keep up to date – The crypto market is extremely volatile and never closes, therefore keeping up to date with the latest trends and developments is vital. Most brokers offer tutorials, blog posts and demo accounts that can be used to hone your skills.
- Research – There are numerous websites and blogs which provide current insights and analysis. YouTube, for example, contains hundreds of free tutorials. Furthermore, many traders now turn to Reddit forums to share tips and hints with fellow traders.
- Technical analysis – Most brokers provide several features to help with market analysis. It is important to get to grips with charts and indicators to ensure you are maximising your profits. Line, bar and candlestick charts are common and offer the most amount of information in an easy-to-digest format.
- Money management – It is impossible to predict what will happen in any market, therefore a good money management strategy is important when you start trading. Beginners should never invest more than they are willing to use. Effective money management can cut your losses when you make a mistake and increase gains when you get it right.
USD Coin is a highly stable digital currency, which gives it a level of certainty uncommon among other cryptos. Whether you use USD, GBP, INR or NZD to buy USD Coin, each currency will be redeemable for 1 U.S. Dollar.
Keep an eye on inflation rates and whether you’re looking at the rest of 2023, 2025 or 2030, you should be able to get an idea of where USD Coin is headed.
Final Word On Trading USD Coin
Stablecoins have the potential to shake up the world of digital assets by allowing investors to move quickly in and out of risky trades and by making exchange arbitrage seamless. USD Coin holds advantages over other stablecoins, such as Tether (USDT), in that it is issued by a body regulated by financial institutions and its reserve holdings are audited on a monthly basis.
Investors looking for a safe and reliable digital currency to start trading need to look no further than USD Coin.
Is USD Coin A Good Investment?
USD Coin stock is popular with low transaction times and global accessibility adding to its list of benefits. But while price predictions for 2025, 2030 and beyond may look promising, the outlook for cryptos as a whole is still uncertain as governments seek to bring in regulations which could lead to a drop in values.
Is USD Coin A Stablecoin?
USD Coin is a stablecoin with its value pegged to the USD at a rate of 1:1. So whilst there is limited price history for the emerging crypto, investors can look at forecasts for the US Dollar to help inform trading decisions.
Is USD Coin Worth Buying?
Is USD Coin Safe?
USDC may be a stablecoin but cryptos are notoriously volatile so you should think carefully about whether it’s worth investing in. The owner and founder are working hard to ensure the longevity of the cryptocurrency, but it’s difficult to predict the future value of the asset even with a host of historical data metrics and price graphs.
Is USD Coin The Same As USDT?
USD Coin (USDC) is not the same as Tether (USDT). Whilst both are stablecoins and pegged to the US Dollar, they have different owners and backing. Still, vs the likes of Bitcoin, they share similar characteristics and are available for lending and in mining pools with variable transaction fees.