USDC (USD Coin) and USDT (Tether) are both types of stablecoins, which are cryptocurrencies designed to maintain a stable value by pegging them to a reserve of assets, typically a fiat currency like the US dollar, they allow you to easily move money in and out of the crypto market without worrying about sudden price changes.

Stablecoins offer the stability and simplicity of fiat currencies coupled with the innovative nature of blockchain technology, representing a perfect combination of both worlds.

TABLE OF CONTENTS

•  What is USDC
  • Understanding USD Coin (USDC)
  • How to Buy USD Coin (USDC)
• What is USDT (Tether)
  • Understanding USDT (Tether)
  • How to Buy USDT (Tether)

 What is USDC

Understanding USD Coin (USDC)

USD Coin (USDC) is a type of digital currency that is fully backed by U.S. dollars or assets that are equivalent to U.S. dollars, such as U.S. Treasury securities. Essentially, USDC acts like a digital version of the U.S. dollar, with each USDC coin intended to be worth exactly one U.S. dollar. This design helps keep the value of USDC stable, which is why it is classified as a stablecoin.

The company that created USDC in 2018, called Circle, ensures that it maintains a 1:1 value with the U.S. dollar by holding an amount of cash or cash equivalents that matches the total amount of USDC in circulation. For example, when you buy one USD Coin for $1, that dollar is deposited and stored, and you receive 1 USDC in return. If you decide to sell 1 USDC for $1, the USDC is "burned" (permanently removed from circulation) when the dollar is transferred back to your bank account. 

USDC can be used on several different blockchain networks, including: Algorand, Arbitrum, Avalanche, Base, Celo, Ethereum, Hedera, NEAR, Noble, OP Mainnet, Polkadot, Polygon PoS, Solana, Stellar, Sui and ZKsync.

How to Buy USD Coin (USDC)

You can buy USDC using various payment methods, you should always buy cryptocurrencies from trusted and well known sources, in this guide we recommend the following 3:

• Kraken:  https://www.kraken.com/learn/buy-usdc-usdc 
• Coinbase: https://www.coinbase.com/how-to-buy/usdc
• Binance: https://www.binance.com/en/how-to-buy/usd-coin

These are the largest cryptocurrency exchanges in the world right now, each link contains a detailed step by step guide on how to purchase USDC from the exchange. 

What is USDT (Tether)

Understanding USDT (Tether)

Tether (USDT) is a stablecoin launched in July 2014, originally called "Realcoin," designed to maintain a 1:1 peg with the US Dollar (USD). It was one of the first stablecoins created, built on the Mastercoin (Omni) protocol, which introduced the stablecoin concept to the Bitcoin network in 2012. The first USDT tokens were issued on the Omni platform in October 2014, and the project was rebranded to Tether in November of the same year. Tether has since become the most widely used stablecoin, pioneering the fiat-collateralized stablecoin model and playing a significant role in the cryptocurrency market by providing a stable medium for trading and transferring value.

How to Buy USDT (Tether)

You can buy USDt using various payment methods, you should always buy cryptocurrencies from trusted and well known sources, in this guide we recommend the following 3:

• Kraken: https://www.kraken.com/learn/buy-tether-usdt
• Coinbase: https://www.coinbase.com/how-to-buy/tether
• Binance: https://www.binance.com/en/how-to-buy/tether