What Are USDC and USDT and How To Trade Them Against Bitcoin on LocalBitcoins? Vlad Explains..

the crypto market seems to be on fire again and when the market is hot some traders might want to take some profits there is a group of crypto coins that we have recently added as payment methods and those are very popular for traders who want to take profits from for instance bitcoin and then get back in what are these coins in this video we're going to find out [Music] [Music] hey local bitcoins family my name is vlad and today we are taking a look at two of our new payment methods two stable coins called tether with a ticker usdt and usd coin with the ticker usdc now as you may already know bitcoin is not the only cryptocurrency you can trade on local bitcoins in fact you can use many other cryptocurrencies as payment methods when you're trading bitcoin peer-to-peer local bitcoins as you might have noticed in the last few months many cryptocurrencies are very volatile by their nature but there's a group of crypto coins called stablecoins whose price barely fluctuates at all these stable coins are very often packed to the united states dollar just like the two stable coins we're covering in this video usdc and usdt because the price of these coins follows the value of one us dollar they are sometimes also called crypto dollars now before we take a look at these coins i would like to ask you to give you know what some gentle treatment to the like button if you like this kind of cryptocurrency content and please do you know subscribe to local bitcoins tv youtube channel and click that magical bell button to receive all the notifications so you instantly know when we put out a new video and you can also share the videos you find interesting with your friends and family so they don't miss out on crypto okay let's start with tether usd team tether is a cryptocurrency issued by tether limited which in turn is controlled by the owners of a cryptocurrency exchange bitfenix tether is called a stablecoin because its value is packed one two one to the united states dollar to make sure the value stays one to one the issuing company keeps one dollar in a bank account for each usdt dollar it issues into circulation and this is how many of these stablecoins work fiat dollars are deposited to a bank account and then each a company issues cryptocurrency versions of these dollars to operate on a blockchain okay many cryptocurrencies like bitcoin ethereum and cardano just to name a few have their own blockchains but that's not the case with tether since it can operate on many blockchains such as for example on bitcoin's omni and liquid protocol on ethereum and also on tron blockchain okay so what about the second stable coin we added usd coin or qsdc well usdc's value is also packed to the united states dollar and the way it works is that the issuing company claims that each usdc is backed by the equivalent amount of u.s dollars in reserve usdc is managed by a consortium called censure which was founded by a payments technology company circle and included members from the cryptocurrency exchange coinbase and bitcoin mining company bitmain usdc was launched in september 2018 much later than usdt which was launched already in january 2015.

Just like usdt usdc stablecoin doesn't have its own blockchain but it runs on ethereum stellar algorand and solana blockchains now when it comes to these two stable coins you should know like you really should know that the reserves of usdc the usdc they're regularly attested whereas there have been claims that the amount of dollar reserves in tethers bank accounts do not equal the amount of usdt in circulation so keep that one into account okay so how to trade these two stable coins against bitcoin and local bitcoins well you can use them as you do with any other payment method if you want to sell your bitcoin to usdt or usdc just create a salad and indicate in your ad that you're willing to get paid in the usdt or usdc or if you have usdt or usdc and you want to buy bitcoin with those on local bitcoins just create a buyer and stay in the ad you're willing to buy bitcoin with usdt or usdc unfortunately it's currently not possible to store your stable coins on a local bitcoins wallet we only currently support storing bitcoin on your local bitcoins wallet so in order to store usdt or usdc you need to have your own wallet now the good thing is that both of these stable coins run on the ethereum blockchain so to store both of these coins you can use an ethereum wallet for that okay be careful not to make the mistake of sending bitcoin to an ethereum address or stable coins to a bitcoin address cryptocurrency transactions sent to a wrong address cannot be reversed no no cannot be reversed and if you accidentally do that your coins will be lost forever so keep that in mind okay question for you which one do you like to use more usdt or usdc and why or do you use both we would love to hear your opinion so please let us know down below in the comments and thank you so much for watching this video until next time bye you

You May Also Like