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Key Points
USDC is a stablecoin pegged to the US dollar. It is widely accepted in the crypto ecosystem and can be used on multiple blockchains, including the Base network.
To purchase USDC tokens on the Base network, you can buy USDC directly on exchanges like Coinbase. Then, select the Base network when making the transaction.
USD Base Coin (USDbC) is a bridged version of USDC created for developers to use at the launch of the mainnet. It allows you to transfer USDC from Ethereum to the Base network.
When using USDC on Base, it is essential to double-check the receiving address and network to avoid transaction errors and loss of funds.
USDC is a stablecoin cryptocurrency that is pegged 1:1 to the US dollar. This means that 1 USDC is always equal to 1 dollar. It is issued by Circle and has grown to become one of the top ten cryptocurrencies by market capitalization, exceeding $40 billion by the end of 2024.
This stablecoin is available on most major cryptocurrency exchanges and is widely accepted in the digital economy. Additionally, it can be used on multiple different blockchains, including the Base network.
Below, you will learn the step-by-step process of purchasing USDC on the Base network. Furthermore, you will gain a comprehensive understanding of how the Base network connects to the Ethereum blockchain. Ultimately, you will learn how to securely and effectively purchase and start using USDC.
Why Use USDC on Base?
So, if you can already use USDC on Ethereum, why use it on Base?
USDC on Base is the native stablecoin of the Base blockchain, providing a stable and low-cost payment solution within the network. It allows for seamless interaction with Base's decentralized finance (DeFi) application ecosystem, such as lending and yield farming, with lower fees than Ethereum.
On the other hand, USDbC is a bridged version of USDC specifically designed for use at the launch of the Base mainnet. It allows users to transfer USDC from Ethereum to Base.
How to Purchase USDC on the Base Network?
You can purchase USDC on the Base network using Coinbase or any other exchange that supports the stablecoin. This article uses Coinbase as an example to demonstrate the process.
With a Coinbase account and wallet, you can store all versions of USDC in a single account. Then, select the Base network when making transactions to send your USDC on Base.
Here are the steps to purchase USDC on the Base network using Coinbase:
- Create and Fund Your Coinbase Account
You need to create and verify an exchange account. Then, deposit fiat currency (or cryptocurrency) into the account.
- Buy/Convert Your Funds to USDC
Using the sidebar, select USDC and enter the amount you wish to purchase, then confirm the transaction. This will give you USDC in your account.
- Use USDC on Base
The clever part of the Coinbase platform is that it tracks all versions of USDC in a single asset account and bridges them based on the chain you want to use.
Therefore, if you want to send USDC to a Base application or wallet, simply select the Base network, and Coinbase will forward the USDC via Base routing.
Similarly, you can send USDC from Base to your regular Coinbase USDC address. Outside of Coinbase, you may see your funds displayed as USDbC, indicating they are on the Base network, but they maintain the same value and functionality as USDC.
Did you know? USDC is fully backed by dollar-denominated assets. Therefore, every USDC in circulation has a reserve of 1 dollar. This makes it relatively stable, but the prices of USDC and USDbC may experience slight fluctuations, sometimes up to $0.01.
USDC vs. USDbC
USDbC is a bridged version of the USDC stablecoin that operates on the Ethereum blockchain. The original USDC cryptocurrency is pegged 1:1 to the US dollar, meaning one token is always worth 1 dollar. This is also true for the bridged version of the token, allowing the stablecoin to be used on layer two blockchains.
Base is one of these layer two blockchains. It is a network developed by Coinbase, designed to address Ethereum's scalability issues. In simple terms, Base is a blockchain built on top of Ethereum. It inherits the fundamental principles and security of Ethereum but adds different protocols to provide more flexibility and scalability.
To trade using the Ethereum USDC stablecoin on the Base blockchain, you need to "bridge" or transfer it across blockchains. When you bridge USDC tokens, the original USDC is locked on the Ethereum network. Then, you receive an equivalent amount of USDbC on the Base network.
After that, you can freely use the associated stablecoin tokens for transactions on Base, and you can always reverse bridge back to the original Ethereum USDC.
To simplify these technical details, multiple platforms allow you to purchase USDC on Base using fiat currency and other cryptocurrencies.
How to Transfer USDC from Ethereum to Base?
Here are the steps to bridge USDC from Ethereum to Base:
Set Up Your Wallet: First, you need a crypto wallet compatible with USDbC. You can add Base tokens to self-custody wallets like MetaMask or use the native Coinbase wallet and app.
Self-Custody Bridging: If you already have USDC and want to bridge it to the Base network, you can do so through the Base website. Just select from Ethereum to Base and choose the USDC asset. Then, connect your wallet and complete the transaction.
When using USDC on Base, it is important to follow some best practices to ensure you do not make mistakes and lose funds. Transactions can become tricky, especially when dealing with bridged or wrapped tokens. Here are some key things to check before completing USDC transactions on the Base network:
Double-check the receiving address and network: If you make a mistake and send USDC tokens to the wrong wallet address, you will not be able to reverse the transaction. For example, ensure that both the sender and receiver are using crypto wallets or accounts compatible with USDC Base.
Make sure to select the Base network when sending USDbC: Attempting to send bridged tokens to the wrong network can also result in total loss. For example, you should not try to send USDbC directly to Ethereum or Solana chains. This is an easy mistake to make.
Always choose a secure and reputable wallet provider or platform: Never interact with wallets or platforms you are unsure about.
By following these steps and staying cautious, you can safely use USDC and USDbC on the Base network without risking asset loss. Always keep your information updated and carefully check every detail before making transactions to ensure a smooth experience.
Related: How to Buy Bitcoin in Singapore?
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making decisions.
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