Trading Glossary
USDC, or USD Coin, is a type of stablecoin — a digital currency pegged to the value of the US Dollar at a 1:1 ratio. It is issued by Circle and is backed by fully reserved assets, meaning each USDC in circulation is matched by an equivalent amount of US dollars held in reserve. USDC operates on blockchain networks and is widely used in decentralised finance (DeFi) and digital asset trading.
A cryptocurrency trader might convert volatile digital assets into USDC during periods of market uncertainty to preserve the value of their portfolio without moving funds off the exchange. Because USDC maintains a stable value, it can also be used to earn yield through DeFi protocols or as collateral for trading positions. For traders exploring digital assets, understanding stablecoins like USDC is increasingly important as they play a central role in the infrastructure of cryptocurrency markets.
Learn the language behind real trading decisions with clearer definitions, better context, and structured examples.