USDC (USD Coin) and USDT (Tether) are both stablecoins, which are cryptocurrencies that are pegged to the value of the U.S. dollar.
USDC is an ERC-20 token built on the Ethereum blockchain and is issued by regulated financial institutions. It is fully collateralized by U.S. dollars held in reserve, meaning that for every USDC in circulation, there is a corresponding U.S. dollar held in reserve. This makes USDC a transparent, auditable, and regulated stablecoin.
USDT, on the other hand, is issued by Tether Limited and is built on the Bitcoin blockchain (Omni Layer protocol). It is also pegged to the U.S. dollar, but it is not fully backed by U.S. dollars in reserve. Instead, Tether Limited has claimed that it holds a reserve of U.S. dollars that is equivalent to the amount of USDT in circulation. However, this has been a source of controversy and Tether Limited has been criticized for not providing enough transparency or audits to prove this claim.
In summary, USDC is a transparent and regulated stablecoin, while USDT is more controversial due to the lack of transparency and audits.
There are a few different ways to cash out USDC:
- Cryptocurrency exchanges: The most common way to cash out USDC is to sell it on a cryptocurrency exchange. This can be done by transferring USDC from your wallet to the exchange, and then selling it for U.S. dollars or another fiat currency. The U.S. dollars can then be withdrawn from the exchange to a bank account.
- Peer-to-peer marketplaces: You can also sell USDC on peer-to-peer marketplaces such as LocalBitcoins or Paxful. These platforms connect buyers and sellers of cryptocurrencies directly, and you can arrange to meet in person or complete the transaction online.
- ATMs: There are some Bitcoin ATMs that also support USDC. You can check the location of such ATMs and check if they support USDC, if so you can deposit your USDC and get cash out.
- Over-the-counter (OTC) trading: OTC trading allows you to sell large amounts of USDC directly to a buyer without using an exchange. This is often used by institutional investors and high net worth individuals.
It is important to note that you should be careful when choosing a platform to cash out your USDC, as not all platforms are reputable or trustworthy. It’s also important to read the terms of service and fees for each platform before you start trading.
One potential shortcoming of USDC is that it is built on the Ethereum blockchain, which can be subject to high transaction fees and network congestion. This could make it more expensive to transfer USDC and potentially slow down transactions. Additionally, as a new and developing technology, there may be some issues with the security and stability of USDC and the platforms that support it.
Another potential shortcoming is the fact that USDC is issued by regulated financial institutions, which means that it is subject to government regulations and oversight. This could limit its potential for widespread adoption and use in illegal activities.
Additionally, USDC may not be as widely accepted and supported as other cryptocurrencies, as it is relatively new and not as well-established. This could make it more difficult to find exchanges or other platforms that support it, and may limit its liquidity in the market.
It’s worth noting that USDC is a stablecoin which is pegged to the value of the U.S. dollar, this means that it’s value will not be affected by the volatility of the crypto market, but on the other hand it also means that it will not appreciate in value like other cryptocurrencies.