USD Coin Day Trading 2024 – 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 2024. We also list the best brokers and exchanges offering trading on USD Coin.

USD Coin Brokers

#1 - Deriv.com

Why We Chose Deriv.com

Deriv.com continues to offer a strong selection of 30+ crypto pairs - this is more than double the range offered at our leading competitor, IQ Cent. 1:2 leverage is also available so you can magnify potential returns, and there are no commissions which is ideal for newer day traders.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • Coins: BTC, LTC, ETH, USDT, USDC
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: From 0.5
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Deriv Trader, MT5
  • Minimum Deposit: $5
  • Regulator: MFSA, LFSA, VFSC, BFSC

#2 - OKX

Why We Chose OKX

OKX continues to offer a superb selection of 400+ tokens including Bitcoin and Ripple. You can buy and sell tokens or trade cryptos on margin via derivatives, including perpetual swaps, options and futures. OKX stands out for its low fees, extensive range of tokens and speedy crypto transactions.

"OKX is a top pick for crypto traders looking for emerging coins and crypto projects to invest in. Traders can also make use of the broker's copy trading service and automated bots."

- DayTrading Review Team
  • Coins: BTC, XCH, ETH, OKB, OKT, LTC, DOT, ADA, DOGE, XRP, USDT, ICP, BCH, LINK, XLM, ETC, MATIC, THETA, UNI, TRX, EOS, FIL, XMR, NEO, USDC, AAVE, SHIB, LUNA, KSM, BSC, ATOM, IOTA, ALGO, XTZ, CRO, MKR, BTT, CEL, LEO, WBTC and many more
  • Crypto Mining: Yes
  • Auto Market Maker: No
  • Crypto Spread: Variable
  • Crypto Lending: Yes
  • Crypto Staking: No
  • Platforms: AlgoTrader
  • Minimum Deposit: 10 USDT
  • Regulator: VARA

#3 - CEX.IO

Why We Chose 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, including 50+ in-built indicators. Traders can also reduce their monthly volumes through the tiered pricing structure.

"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."

- DayTrading Review Team
  • Coins: ZRX, 1INCH, AAVE, BTC, BCH, ADA, LINK, COMP, ATOM, DAI, DOGE, ETH, GUSD, ICP, LTC, LRC, MATIC, MKR, DOT, SHIB, SOL, XLM, SUSHI, SNX, USDT, XTZ, USDC, UNI, WBTC, ZIL
  • Crypto Mining: Yes
  • Auto Market Maker: No
  • Crypto Spread: 0.15% maker & 0.25% taker (Standard)
  • Crypto Lending: Yes
  • Crypto Staking: Yes
  • Platforms: TradingView
  • Minimum Deposit: $20
  • Regulator: GFSC

#4 - Alpari

Why We Chose Alpari

Alpari offers a solid selection of popular crypto tokens paired with the USD. Spreads are competitive, starting at 1 and users can analyze the digital asset markets with the leading MetaTrader platforms, including on the weekends.

"Alpari will suit short-term binary options traders with a low $5 deposit, powerful charting terminals, and a rebate scheme. Forex traders also get very high leverage with tight spreads while the broker's PAMM service will appeal to hands-off investors."

- DayTrading Review Team
  • Coins: AVE, BTC, BCH, ADA, LINK, DAI, DOGE, EOS, ETH, ECH, FIL, LTC, XMR, DOT, XRP, MATIC, SOL, XLM, USDT, TRON, UNI, USDC
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: 1
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Regulator: FSC, SEBI, JFSA

#5 - Nexo

Why We Chose Nexo

Nexo offers trading on an impressive suite of around 70 tokens, including Bitcoin. Digital assets can be bought, sold and swapped directly on the exchange or traded in over 500 pairs. Digital assets can also be used as collateral for fiat loans or used to generate passive income with the ‘smart staking’ tool or from interest earned via peer-to-peer loans.

"Nexo gives crypto traders the capability to trade, invest, lend and borrow digital assets in one place, and it’s especially good for its credit functions that pay out very high yields to lenders. However, its fees are relatively high and many day traders will prefer a more tightly regulated crypto broker."

- DayTrading Review Team
  • Coins: BTC, ETH, NEXO, USDT, USDC, AXS, RUNE, MATIC, DOT, APE, AVAX, KSM, ATOM, FTM, NEAR, BNB, ADA, SOL, XRP, LTC, LINK, BCH, TRX, XLM, EOS, PAXG, UNI, DOGE, MANA, SAND, GALA, SUSHI, AAVE, CRV, MKR, 1INCH, DAI, USDP, TUSD
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: Yes
  • Crypto Staking: Yes
  • Platforms: Nexo Pro
  • Minimum Deposit: $10

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.

What is USDC

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:

  1. A user deposits cash to the token issuer’s bank account
  2. The issuer uses a USD Coin smart contract to create an equivalent amount of USD Coin
  3. 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:

  1. Firstly, a user sends a request to redeem their USDC for USD
  2. The issuer again uses the USDC smart contract to exchange the tokens for USD and takes the equivalent amount of tokens out of circulation
  3. 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

Mining

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).

USD Coin trading strategy

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:

Choosing An Exchange

When deciding which crypto broker to go for there are a number of factors to consider:

Trading Tips

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

Price Forecast

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 2024, 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.

FAQ

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?

USD Coin is a legitimate crypto with promising yields for active investors. It may not be as popular as the likes of Bitcoin, but it is available on leading exchanges including Coinbase and Kraken.

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.