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
About Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
Pros
- The low $5 minimum initial deposit suits those on a lower budget
- Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient
- The free demo account is ideal for practicing short-term trading strategies and no registration is required
Cons
- There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
- There's no loyalty program or rebate scheme for high volume traders
- The range of 100+ assets trails some competitors such as Quotex which offers 400+
#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
About OKX
OKX is a respected cryptocurrency firm, established in 2017, that offers a large suite of products, from mining pools to NFTs. Traders can access over 400 crypto tokens via OTC trading and derivatives. With an excellent web platform, developer tools and dynamic charts, OKX is a popular choice for technical traders.
Pros
- There's a vast developer lab plus access to a marketplace of pre-built trading bots with auto-arbitrage
- You can access a wide range of trading products, including futures, options and perpetual swaps via a mobile app or desktop platform
- OKX maintains an excellent reputation with 20 million global clients and a license from the Dubai Virtual Assets Regulatory Authority
Cons
- The firm offers limited regulatory oversight, though this is common among crypto brokers
- The broker's platform and features may be complex for novices
- The quality of customer support was inconsistent based on testing
#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
About CEX.IO
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.
Pros
- The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators
- The broker offers 24/7 support with fast response times during tests
- Crypto leverage is available up to 1:3
Cons
- The broker has limited regulatory oversight
- The Exchange Plus platform delivers a cluttered interface compared to competitor platforms
- Deposit and withdrawal fees are relatively high, including 0.3% + $25 for SWIFT withdrawals
#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
About Alpari
Alpari is an offshore multi-asset broker that offers traders a wide range of forex trading opportunities as well as stock, index and commodity CFDs. The broker also offers fixed costs with payouts known upfront. Trading takes place on the reliable MT4 and MT5 platforms, plus the brand's mobile app. Alpari offers tight ECN spreads which will serve active day traders.
Pros
- Cashback schemes are available for high-volume traders
- Copy trading and PAMM services are also available for day traders
- Low or no commissions are available and there are tight spreads on ECN accounts
Cons
- There are fairly high charges for strategy manager copy trading tools
- The lack of educational resources is disappointing compared to alternatives
- The market analysis and research tools are limited
#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
About Nexo
Nexo is a centralized crypto exchange founded in 2018 in Bulgaria and today operates across some 200 jurisdictions from its base in Switzerland. It provides services including spot trading, futures trading, peer-to-peer loans, cold wallet storage and fiat-on ramps to buy crypto tokens. The crypto firm is registered with some respected financial authorities, such as the ASIC, and offers some fairly unique additional services including a credit card.
Pros
- Nexo’s crypto staking and credit features support crypto lending and borrowing, and the yields lenders receive are among the best going
- Traders can access perpetual futures to open long or short positions on crypto assets, increasing strategic opportunities
- Value-add tools integrated into the trading platform including social media analysis and newsfeeds by asset
Cons
- The range of tokens is extensive compared to most crypto brokers but still much smaller than similar crypto exchanges like Kraken
- High deposit and withdrawal fees for cards and e-wallets will price many traders out of the most convenient payment methods
- High maker/taker fees mean day traders will pay more to trade derivatives than they would at rival exchanges like Binance
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.
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).
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.
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:
- 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.
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.