In the cryptosphere, USD Coin (USDC) has emerged as the dominant and favoured stablecoin, surpassing Tether (USDT) in 2022. Renowned for its adoption across DeFi applications, USDC offers attractive yields for stakers. This guide will show you to buy USDC in Australia.
What is USDC?
USDC, a stablecoin tethered to the US dollar, maintains a 1:1 value ratio with the USD. It is issued by regulated financial institutions and backed by real USD held in their accounts.
With USDC, users can conduct purchases and send payments globally, similar to any traditional currency. However, unlike many other cryptocurrencies, USDC transactions are characterised by speed, affordability, and reliability. The stablecoin’s value remains stable despite volatile cryptocurrency prices due to its USD peg.
Circle and Coinbase, two prominent companies, founded USDC in 2018. Their objective was to introduce a digital dollar suitable for Ethereum blockchain transactions. Since then, USDC has gained significant popularity within the cryptocurrency domain as one of the leading stablecoins.
USDC operates under the regulation of the US Financial Crimes Enforcement Network (FinCEN) and complies with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. These robust regulatory measures ensure the safety and security of USDC users, providing assurance against fraud and theft.
Overall, USDC stands as a trustworthy stablecoin, offering the advantages of cryptocurrency without the accompanying volatility. If you seek a digital currency for everyday transactions, USDC is an excellent choice.
How to Buy USDC in Australia?
Step 1: Find an exchange platform
USDC can be bought on major crypto exchanges. Regarding crypto platforms, they can generally be categorised into two types:
Centralised exchanges serve as intermediaries and oversee all transactions on their platforms, providing security and trust in the absence of fraudulent activities. They are user-friendly and ideal for crypto-transitioners but often charge higher fees for buying, selling, or converting coins.
Meanwhile, decentralised exchanges facilitate peer-to-peer crypto transactions, eliminating the need for intermediaries. Since the transactions are directly on the blockchain without a central entity, they are less susceptible to cyberattacks. However, the lack of regulatory oversight means users have limited protection in case of transaction issues. These exchanges may be challenging for those with limited knowledge, making them more suitable for experienced investors.
This guide on how to buy USDC will provide step-by-step instructions using screenshots from the CoinSpot account. If you prefer the simplest way to follow along and purchase USDC, we recommend registering on CoinSpot.
Step 2: Create an account
To create an account with CoinSpot, visit CoinSpot’s homepage via this link: https://coinspot.com.au. You’ll find a white “Register” button in the top right corner. Click on it to go to a page, as in the screenshot below. Enter your email address, select a password, confirm that you’re not a robot by checking the box, and then click “Create Account.”
Once your CoinSpot account is successfully created, you need to verify it. Click on the “Complete Verification” button and follow the instructions. Start by verifying your email address, then fill out your details and verify your driver’s licence. The verification process may take some time to complete.
Step 3: Deposit AUD into your account
Once you’ve successfully created an account, the next step is depositing funds to purchase USDC. Several options are available for depositing funds, including:
- Bank account: You can deposit funds from your local bank account. It is advisable to confirm with the exchange you choose whether any fees are associated with bank transfers.
- Credit or debit card: Linking a card to your account offers a convenient way to add funds. Card payments allow for instant purchases or the setup of recurring purchases. However, note that using a card usually incurs an additional fee.
- Cryptocurrency: You can transfer cryptocurrency from another exchange or wallet to buy USDC. Typically, you can exchange Bitcoin or stablecoins for USDC. However, this may vary, so you must search for USDC on the spot market to determine which cryptocurrencies it can be traded for.
For example, to deposit AUD into your CoinSpot account, you can find the “Deposit Funds” button under the CoinSpot logo in the top left corner. Clicking on it will direct you to a page where you can see different deposit methods. Many users prefer using POLi as it offers instant, convenient, and fee-free transactions. Select the desired deposit amount, choose your bank, and click “Continue to POLi” to proceed with the payment.
Step 4: Buy USDC in Australia
After your funds have arrived in your CoinSpot account, it’s time to purchase USDC. Begin by clicking on the “Buy/Sell” option in the top menu, search for USDC and click on the “Buy USDC” button.
You will be directed to the purchase screen showing the USDC price. Provide the amount of Australian dollars (AUD) you want to spend and click on the blue “Buy” button.
A pop-up will appear, showing a summary of your purchase with details such as the number of coins, the price per coin, the fee, and the total amount to be paid. In the screenshot below, let’s assume a purchase of USDC worth $500. If the information is correct, click “Confirm Buy” to finalise the transaction.
Step 5: Store your USDC
Once you have some USDC, it’s time to decide on the storage of your digital assets, and you have a few options to consider:
Keeping USDC on the exchange: The exchange where you purchased Tether will likely provide an option to store your tokens within your account. This is convenient, especially for novice users, but it does come with risks of hackers breaching the exchange. In addition, when your assets are on the centralised exchange, you do not have direct access to the private keys that grant you full control over your assets. Opting for this method means relying on a third party and may leave you vulnerable to a security breach.
Crypto wallet: A crypto wallet offers a more secure storage option for your digital assets but requires more responsibility. Storing your assets in a digital wallet necessitates using a numerical key for ownership verification and transaction authentication. However, if this key is lost, you will lose access to your assets without proving ownership.
There are two types of crypto wallets: hot wallets and cold wallets. The former allows for the convenient movement of tokens in and out of the wallet for transactions but comes with potential cyberattacks. On the other hand, the latter does not connect to the internet and allows you to control your keys, thus reducing the risk of breaches. However, it may be less convenient for those who frequently need to transfer assets in and out of storage.
Where to Buy USDC in Australia?
There are several crypto exchanges where you can buy USDC in Australia, including CoinSpot, Binance, Crypto.com, and Kraken. CoinSpot is an excellent choice due to its fast and cost-effective AUD deposits, low trading fees, and high-level security. This trading platform supports 380+ digital assets and lets you stake your USDC to earn high passive income.
It is easy if you are interested in pairing your USDC holdings with other cryptocurrencies. Most crypto exchanges enable users to trade USDC with other coins. While USDC does not technically “pair” with other coins since it is a stablecoin pegged to the U.S. dollar, it’s a popular choice for purchasing other coins and maintaining market liquidity. For converting your USDC into Bitcoin (BTC), Ethereum (ETH), and other major coins, you can select exchange platforms such as Binance, KuCoin, and Coinbase.
If you are still unsure which exchange is the best for buying USDC, you can read our review of the best crypto exchanges before deciding. And if you prefer buying and selling USDC and other coins on your mobile, refer to our review of the best crypto apps in Australia for further details.
Is USDC a Good Investment?
USD Coin (USDC) is a stablecoin meticulously designed to maintain a fixed 1:1 ratio with the US dollar. As per insights from Huobi Ventures, it has the potential to surpass Tether (USDT) and become the largest stablecoin based on market capitalisation. However, this outcome is not inevitable, particularly with the emergence of Binance USD as a formidable competitor.
In the highly volatile realm of cryptocurrencies, conducting thorough research on any coin or token is crucial to determine its suitability for your investment portfolio. Whether USDC aligns with your investment goals depends on various factors, including risk tolerance and investment amount.
Note that past performance does not guarantee future returns, and investing funds you cannot afford to lose is inadvisable.
FAQs About USDC
What are the fees for buying USDC?
The fees for purchasing USDC on CoinSpot vary depending on the chosen payment method. No fees are applied when depositing AUD into your account via Bank Transfer. However, a fee of 1.49% will be charged if you use a debit or credit card. For detailed information on deposit types and their corresponding fees, we recommend referring to our comprehensive CoinSpot Review.
Can I buy USD Coins with cash?
To acquire USD Coin on your primary Coinbase account, you can trade using Ethereum (ETH). If you don’t already have ETH in your account, you will be guided to either “buy ETH with cash” or “receive ETH from another Wallet.”
Is investing in USD Coin risky?
Investing in USD Coin (USDC) is commonly acknowledged as carrying inherent risks. Despite stablecoins such as USDC having lower price volatility than other cryptocurrencies, they may face heightened scrutiny from regulatory bodies such as the U.S. Securities and Exchange Commission. Investors must be fully aware of the associated risks before purchasing USDC.
What can you buy with USDC?
Over 600 merchants now accept USD Coin (USDC) as a form of payment. This wide range of merchants allows users to leverage their USDC in various ways. For example, Coinsbee offers the opportunity to buy gift cards for popular stores, while other merchants make registering domain names for future websites possible. Though options may be limited, USDC can also be used to secure hotel stays.
Is USDC legal in Australia?
Yes. In Australia, the use of stablecoins like USDC is entirely legal. Stablecoins are digital currencies designed to maintain a steady value by being pegged to a specific asset, such as the US dollar. In Australia, the regulatory oversight of digital currencies, including stablecoins, falls under the Australian Securities and Investments Commission (ASIC) purviewrding to ASIC, the use of stablecoins is generally not prohibited in the country. However, individuals and businesses must be well-informed about the associated risks of using such digital currencies and ensure compliance with relevant laws and regulations.
Final Thoughts
USDC enables users to store value digitally, and in Australia, USDC and other stablecoins are considered legal. However, individuals and businesses must familiarise themselves with the risks of utilising these digital currencies and ensure compliance with relevant laws and regulations.
To purchase USDC in Australia, CoinSpot is recommended as they offer zero fee AUD deposits and low trading fees on their secure and regulated exchange. For earning yield with USDC, engaging with a secure decentralised finance (DeFi) application like Aave is advisable. Aave allows users to deposit their USDC and earn yield without the risk of a centralised provider collapsing.
USDC is an excellent stablecoin choice for Australians, offering a secure and dependable option for storing value. Using the right platform allows users to explore additional features such as staking, lending, and trading.
