How to Save USDC

In an increasingly digital world, finding secure and accessible ways to save money is more important than ever. Traditional banking systems often come with limitations such as high fees, limited access, and delays in transferring funds. Enter USDC, a stable digital dollar that leverages the efficiency of blockchain technology to offer a new way to save and store value with low fees, fast transfers, and global accessibility.

With USDC, stability is no longer bound by geography. Whether you're looking for a way to protect your savings from the potential volatility of global currencies, or looking for a more inclusive financial solution, USDC is a compelling option.

In this article, we'll explore what it means to purchase and hold USDC, and how it serves as a stable store of value for individuals around the world.

First, let’s start with a brief overview of what USDC is.

Understanding USDC: a stable digital dollar

USDC is a type of digital currency known as a stablecoin, designed to maintain 1:1 value with the US dollar. Issued by Circle, a global financial technology company, every USDC in circulation is fully backed by cash (and highly liquid cash equivalents) held in reserve.

USDC combines the reliability of the US dollar with the speed and accessibility of the internet. It natively operates on more than 15 of the world’s most important blockchain networks, enabling fast and low-cost transactions worldwide without the need for traditional banking intermediaries.

Key features of USDC

• Stability: Tied to the US dollar and fully backed by reserves, USDC maintains a consistent value over time.
• Transparency: Circle provides regular attestations from independent accounting firms to verify the reserves backing USDC.
• Accessibility: USDC can be accessed by individuals with an internet connection and a digital wallet in over 180 countries.
• Regulatory compliance: Circle takes a comprehensive and proactive approach to make sure USDC complies with regulatory standards.

Check out our complete guide to understanding USDC.

Why save with USDC?

USDC is a viable tool for saving value thanks to its stability, accessibility, efficiency, and transparency — enabling individuals to hold value in a stable asset without the need for traditional banks.

USDC provides stability in the form of a digital currency

USDC offers the familiarity and stability of the US dollar in a digital format. This stability can be particularly valuable in regions where the value of local currencies may experience significant fluctuations. By holding USDC, you can maintain the value of your savings relative to the US dollar.

USDC offers global accessibility and promotes financial inclusion

Traditional banking services aren't universally accessible. According to the World Bank, approximately 1.7 billion people are “unbanked” or “underbanked,” lacking access to basic financial services. USDC provides an alternative by enabling people in over 180 countries to seek greater financial inclusion with only an internet-connected device and a digital wallet. With these tools, individuals can easily save digital dollars, and from there, send, spend, and trade them as they see fit — fostering greater participation in the global digital economy.

USDC improves the efficiency and speed of financial services

USDC transactions leverage blockchain technology, allowing for quick transfers that can settle within seconds or minutes, even across borders. Blockchain infrastructure also sidesteps traditional banking intermediaries, and the fees they charge, reducing costs for users. And blockchain networks are on 24/7, meaning your ability to access and manage your savings isn’t limited by typical obstacles like banking hours, weekends, or holidays. The result: USDC offers a low-cost, fast, and flexible way to manage your savings.

USDC provides the utmost transparency and trust

USDC's reserves are safely held by leading financial institutions in highly liquid assets like cash and short-term US Treasuries. Daily, independent, third-party reporting on the portfolio of assets that back USDC is publicly available via BlackRock. Circle's commitment to transparency also includes publishing regular reports and undergoing independent audits, which are made available here. This transparency forms the foundation of trust in USDC as a reliable digital dollar.

How to start saving with USDC

Saving value with USDC means purchasing and holding the asset in a digital wallet, either on your own (i.e., non-custodial) or with a third-party (i.e., custodial). If you’re new to cryptocurrency, you’ll likely make your initial crypto purchases using a centralized crypto exchange, also known as a CEX. These platforms often offer fiat-to-crypto on-ramps for newcomers to purchase crypto with fiat currency like USD, and friendly user interfaces that simplify the crypto trading experience. If you already own crypto, you might opt to use a decentralized exchange (DEX) to acquire and save USDC, but this guide will primarily detail the centralized exchange experience.

Getting started saving USDC is straightforward. New users can follow these simple steps to begin:

Step 1: Choose a platform to buy USDC and create an account

USDC is available on numerous CEXs such as Binance, Coinbase, Crypto.com, Kraken, OKX, Robinhood, and more. Select a platform that operates in your region and sign up to create an account. This typically involves providing some personal information and completing any required identity verification processes.

Note: If you already have cryptocurrency in a self-custody wallet, you can connect your wallet directly to DEXs like Uniswap, Curve, and more to acquire USDC.

Step 2: Deposit funds and buy USDC

Fund your centralized exchange account with fiat currency (like US dollars) via bank transfer, debit/credit card, or other supported payment methods. Once your account is funded, navigate to the “market” or “trading” section, select USDC, and execute a buy order for the amount you wish to purchase, either with US dollars or with any other cryptocurrencies you hold in your exchange account that have a trading pair with USDC.

Note: If you already have cryptocurrency in a self-custody wallet, you can use it to acquire USDC on a DEX provided that the platform supports that trading pair. 

Step 3: Decide where to store your USDC

You can simply store the USDC you’ve purchased in the digital wallet provided by your chosen centralized exchange, or you can move the funds to another digital wallet. Most exchange wallets are custodial, meaning the CEX serves as a trusted custodian responsible for keeping your digital assets secure. On the other hand, non-custodial wallets give you sole control over your assets (and sole responsibility for keeping them safe).

If you’re only looking to purchase, hold, and save USDC, then either a custodial or non-custodial wallet will suffice. If, however, you wish to connect to decentralized apps (dApps) including DEXs across the broader blockchain ecosystem, then you’ll need a non-custodial wallet.

Learn more about the different types of digital wallets and determine which type is right for you.

Step 4: Secure your USDC

Whether you decide to store your USDC in a custodial or non-custodial wallet, security is incredibly important. Always enable security features such as two-factor authentication (2FA) where available, use strong and unique passwords, and keep your wallet software up to date. Beware of phishing attempts and be sure to only use official websites and platforms.

If using a non-custodial wallet, ensure that you keep your wallet's private keys or recovery phrases in a safe and secure place; losing access to these could mean losing access to your funds permanently. Consider storing this sensitive information offline in a secure location to minimize the risk of unauthorized access.

These measures add layers of protection against potential security threats and help safeguard your USDC savings.

Doing more with USDC

USDC is more than just a tool for saving; it's part of a larger movement toward digital finance that prioritizes accessibility, efficiency, and innovation. Other major USDC use cases include:

• Send: USDC makes it possible to transfer value quickly and affordably. It’s well-suited for peer-to-peer transactions, international remittances, financial aid, and more — especially for those in regions with limited banking infrastructure.
• Spend: USDC is widely accepted as a payment method by merchants, both online and in person. Its stability and integration with various platforms offer a smooth payment experience.
• Trade: USDC plays a crucial role in the decentralized finance (DeFi) ecosystem, which offers decentralized alternatives to financial services like trading, lending, borrowing, and earning interest. However, engaging with DeFi comes with additional risks and complexities, so thorough research is recommended.

Saving with USDC: final thoughts

Saving with USDC presents an opportunity to leverage the advantages of blockchain technology while maintaining the stability of the US dollar. Its global accessibility opens doors for individuals who may have been excluded from traditional financial systems, and its transparency and regulatory compliance help build trust among users.

Whether you're looking to safeguard your savings from potential volatility, explore more efficient ways to manage your funds, or gain access to financial services, USDC offers a versatile and innovative option on your journey toward a more accessible and stable financial future.