Stablecoins are important as they bridge the world of real money to crypto. You are able to lock in gains without having to convert to cash, avoiding price fluctuations.
2 of these stablecoins include USDC and GUSD, and here’s how these two are different:
Contents
1 The difference between USDC and GUSD
2 Reserves Liquidity and Market Capitalisation
3 Availability of Trading Pairs on Platforms
4 Interest Rates on Staking Platforms
5 Companies behind GUSD and USDC
6 Final Verdict
The difference between USDC and GUSD
Both GUSD and USDC are stablecoins. However, USDC has a higher market cap, more trading pairs and higher availability of lending platforms compared to GUSD, which may result in greater use cases for USDC.
Here is a further comparison between these 2 stablecoins:
Reserves Liquidity and Market Capitalisation
One of the most important aspects of a stablecoin is its reserves. This is how a stablecoin can maintain a constant price despite the changes in the cryptocurrency market.
Meanwhile, the remaining 40% of the reserves were backed by debt securities and bonds.
A debt security is adebt instrumentthat can be bought or sold between two parties and has basic terms defined, such as the notional amount (the amount borrowed), interest rate, andmaturityand renewal date.
Their assets are less liquid and less accessible compared to cash. Furthermore, it takes time to retrieve those assets. If the other party is unable to pay the loan, then the money is essentially gone.
If there is a big crash in the crypto market and everyone wants to cash out USDC for USD at the same time, you may not be able to do so!
As such, this helps to ensure that GUSD has one of the more trusted reserves for a stablecoin. This also makes it more trustworthy compared to USDC’s reserves.
GUSD – Market Capitalisation
When compared to other stablecoins, GUSD has a much lower market cap.
In fact, GUSD is the 10th ranked stablecoin, behind other currencies like TUSD, UST and DAI.
Its current market cap is around $290 million, which pales in comparison to USDC’s market cap of $52 billion.
Availability of Trading Pairs on Platforms
The main purpose of stablecoins is to convert volatile coins into a more stable currency.
For stablecoins to be useful, we have to be able to exchange any crypto coins of our choice into stablecoin.
A trading pair is where assets that can be traded for each other on an exchange
The prices of stablecoins remain constant, unlike other cryptocurrencies such as Bitcoin. This makes holding stablecoins a great way to avoid market volatility.
On top of that, the interest rates for stablecoins are usually higher than normal coins. Even though stablecoins can be considered as similar to USD, the interest rates for stablecoins are much higher compared to those offered by the banks!
Your stablecoins gain interest, while having stable prices.
This is a great way to earn passive income.
Let’s compare the interest rates across the different platforms:
USDC – Interest Rates
Here are some of the places where you can lend or ‘stake’ USDC:
All of these companies are well established in the cryptocurrency space, and you are able to have some assurance when using USDC as a form of exchange.
Since these stablecoins are not fully decentralised like UST, there is a risk of governments still having control of your funds.
If you are using cryptocurrency because of decentralisation and freedom from the government, you may want to consider decentralised stablecoins instead.
Final Verdict
Here is a summary of both stablecoins:
USDC
GUSD
Liquidity and reserves
60% cash and 40% backed by bonds and debt securities
100% in USD
Market capitalisation
Second-highest market cap
10th ranked stablecoin (based on market cap)
Trading pairs availability
More
Fewer
Staking interest rates
More platforms available
Less platforms available
Owners of the coins
Circle, Centre and Coinbase
Gemini
So which stablecoin is more suitable for you?
Choose USDC if you prefer convenience
In terms of convenience and availability of trading options, USDC is the better option.
However, if you hold USDC, you have to tolerate the risk of Circle only having a small portion of cash reserves.
Having cash reserves is also an important factor in evaluating stablecoins.
Choose GUSD if you prefer trusted reserves
In terms of regulations, GUSD is the better option.
Due to its monthly audits, it adds much more credibility to the reserves of GUSD.
In this way, you will have lesser worries when exchanging 1 GUSD for 1 USD.
However, GUSD is not as well established a stablecoin, which limits the use cases for this stablecoin. As such, you won’t be able to use it on as many platforms compared to USDC!
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Although both were launched in 2018 and are backed by USD reserves, they have essential differences. USDC has a larger market capitalization and trades on more platforms than GUSD. However, GUSD is backed by cash reserves, representing a lower risk for your investment in this coin.
Each GUSD corresponds to a U.S. dollar that is held by Gemini as one of the following types of assets: (1) deposits in U.S. Federal Deposit Insurance Corporation ("FDIC")-insured banks, (2) money market funds, invested only in U.S. Treasury Obligations, or (3) U.S. Treasury Obligations.
USDC's existence on public blockchains allows traders and exchanges to use USDC as an alternative to fiat currencies. Gemini does not support or guarantee USDC's 1:1 peg to the US dollar.
USD Coin (USDC), as a cryptocurrency, is generally considered risky as an investment. While stablecoins like USDC have less price volatility than other cryptocurrencies, stablecoins may be subject to increased scrutiny by regulatory agencies like the U.S. Securities and Exchange Commission.
Gemini implements a number of security measures — including full KYC (Know Your Customer) and AML (Anti-Money Laundering) screening — to ensure that GUSD remains transparent, secure, and regulated for its users.
The Gemini dollar (GUSD) is a crypto stablecoin tied to and guaranteed by US dollars stored in FDIC-insured bank accounts. The monies maintained in reserves are frequently examined by the accounting company, BPM LLP.
GUSD is a regulated stablecoin, which has certain advantages in safety and stability, but for some, regulation defeats the purpose of crypto. Regulated tokens can be censored or confiscated if an activity or transaction associated with them is deemed illegal by authorities.
If you are looking for virtual currencies with good return, GUSD can be a profitable investment option. Gemini Dollar price equal to 0.999 USD at 2022-10-29. If you buy Gemini Dollar for 100 dollars today, you will get a total of 100.141 GUSD.
Security is our #1 priority. Your non-Crypto (USDC) funds are FDIC insured, fully backed by the U.S government, up to $250,000. FDIC insured means that no matter what happens, the cash in your account (up to $250,000) is safe. On the FDIC website, our partner bank Evolve Bank & Trust.
As a result, USDC basically functions as a digital version of the US Dollar and enables its owners to make cryptocurrency payments for products and services without having to worry about market fluctuations depreciating their fiat wealth when they convert it to cryptocurrency.
While it has its benefits, there are associated risks such as slashing, malicious attacks, and stringent technical requirements. Binance Staking can reduce some of these risks and will return the number of tokens staked by a user that would otherwise be lost through slashing.
All you need to start earning is to buy the tokens you need using Binance P2P, and then send them to Binance Earn. And that's that. ... Let's take a look at each of them separately.
Midas Investments is the only crypto lending platform that offers 12.6% APY on USDC. However, keep in mind that Midas is not transparent about its yield-generating activities, which significantly increases your risk.
Earn crypto up to 8.32% USDC interest rates: Earn 8.32% USDC APY interest per year on YouHodler. This is exceptionally higher than any “high-yield” traditional bank savings accounts and other investments. YouHodler offers its clients the best USDC interest rate on the market.
About. GUSD is a stablecoin running on Ethereum that attempts to maintain a value of US $1.00. The supply of GUSD is collateralized by US dollars held at State Street Bank. Users can buy and redeem GUSD through the Gemini cryptocurrency exchange.
As long as it's been in operation, Gemini has not been hacked. Like Coinbase, USD stored in your Gemini account is FDIC-insured. Gemini started with a “security-first” mentality.
Founded in 2018, the Gemini Dollar (GUSD) a fiat-collateralized cryptocurrency stabilized by collateralization by USD in accounts held by the company at the U.S. depository institutions. GUSD was created by Gemini Trust Company, LLC (Gemini), a New York trust company.
Riskiness of crypto: Crypto is risky. Gemini's GUSD stablecoin could lose value, or crypto staked through the Gemini Earn program could be unrecoverable in the event of borrower default.
According to the Winklevoss Brothers, founders of Gemini, GUSD is backed by fiat assets and has the potential to bridge the gap between crypto and the traditional financial sectors. Simply put, it is not an algorithmic stablecoin.
You can send Gemini dollars to these exchanges or any wallet that supports ERC20 tokens by simply selecting the 'Withdraw as Gemini dollar' option in the navigation menu of your Gemini account, entering a destination address, and then choosing an amount of U.S. dollars you want to send.
How Long do GUSD Transactions Take? A GUSD transaction undergoes 25 confirmations on the blockchain, which take about 15 minutes. Transactions take longer when buying Bitcoin and/or using bank transfer. People who exchange GUSD for Bitcoin need to wait 2-3 hours to send a withdrawal.
GUSD is the Gemini stablecoin that currently sports a yield of 8.05%. This yield can fluctuate but the beauty of a stablecoin is that it is highly liquid, stable, backed 1:1 by USD, earns interest daily (awesome for compounding effects) and is redeemable at any time. There are no locked-in time periods.
How does Gemini dollar work? Gemini Dollar works just like any other cryptocurrency. GUSD has a set exchange rate of 1:1 with the US Dollar, a currency to which the stablecoin is pegged. In other words, at any moment, the value of GUSD corresponds to the value of USD.
USD Coin is managed by a consortium called Centre, which was founded by Circle and includes members from the cryptocurrency exchange Coinbase and Bitcoin mining company Bitmain, an investor in Circle.
USD Coin is a stablecoin, and as such one USDC should always be equal in value to one dollar. USD Coin is the currently the second-largest stablecoin, with a current market capitalization of $73 billion.
Staking USDC has relatively low risk. However, there are some risks. Here are four to consider: The U.S. government is not involved with issuing the USDC: As a result, USDC doesn't have any FDIC or SIPC insurance.
The easy explanation is that high interest rates compensate people for the risk that the stablecoin will fall off its peg. But prime stablecoins like USDC and Pax (USDP) are fully backed by high-quality dollar assets, so the risk that people will lose their money is small.
Since USD Coin is managed by multiple companies, the main risk is that one goes bankrupt. According to Circle, USD Coin is always redeemable 1:1 for U.S. dollars. But if Circle or Coinbase ends up going out of business, it's impossible to be 100% sure that USD Coin will maintain its value.
Centralised stablecoins, like USDT (Tether) and USDC, make money through lending and investing, in a manner similar to traditional banks. They do these through fractional reserve banking, where only a fraction of deposits are backed by physical cash on hand that can be withdrawn by investors.
The conversion value for 1 USDC to 1.001 USD. BeInCrypto is currently using the following exchange rate 1.001. You can convert USDC to other currencies like SOL, BNB or USDT. We updated our exchange rates on 2022/10/19 04:39.
While USDT is used more frequently for trading and payments, USDC is often described as a safer stablecoin since Centre makes a greater effort to comply with audits and governmental regulation, and has more transparent, fully-backed reserves.
All you need to do is to deposit your BNB in a liquidity pool. You earn free crypto continuously on Binance by farming some of your BNB or other cryptos on its Launchpool.
However, staking is not without risk. You'll earn rewards in crypto, a volatile asset. Sometimes, you have to lock up your crypto for a set period of time. And there is a chance that you could lose some of the cryptocurrency you've staked as a penalty if the system doesn't work as expected.
The cryptocurrencies with the highest staking market cap include ETH, SOL and ADA, in which the typical annual yield is around 4% to 5%. Note rewards on the Ethereum network are typically locked up until the Ethereum 2.0 network is complete. Also of note, more than 10% of Ethereum is staked.
The best way to make $100 a day on cryptocurrency is to invest around $1000 and track a 10% rise on one pair. This is a realistic approach compared to investing $200 and tracking a 50% rise on the pair.
One of the best times for taking profits in crypto is when you spot the formation of a bearish chart pattern. Death crosses, head and shoulders, shooting stars and other bearish patterns often signal trend reversals, and should be incorporated into any crypto profit-taking strategy.
If you want to know if it's possible to make a living trading cryptocurrencies, the answer is easy: Rather not, at least not for the average Joe. There might be some exceptions who really managed to live from their crypto investments only, but there was surely a big portion of luck involved.
Is the Gemini Dollar (GUSD) crypto better than Tether (USDT)? Yes. Objectively, Gemini Dollar (GUSD) is far superior to Tether (UDST), simply from a risk perspective. GUSD is backed 1:1 by U.S. dollars held in FDIC-insured bank accounts.
GUSD is the Gemini stablecoin that currently sports a yield of 8.05%. This yield can fluctuate but the beauty of a stablecoin is that it is highly liquid, stable, backed 1:1 by USD, earns interest daily (awesome for compounding effects) and is redeemable at any time.
The Gemini dollar (GUSD) is a crypto stablecoin tied to and guaranteed by US dollars stored in FDIC-insured bank accounts. The monies maintained in reserves are frequently examined by the accounting company, BPM LLP.
As of February 14, 2022, BlockFi Interest Accounts (BIAs) are no longer available to new clients who are “U.S. persons” or persons located in the United States and existing U.S. clients will be unable to transfer new assets to their BIAs. ...
If you are looking for virtual currencies with good return, GUSD can be a profitable investment option. Gemini Dollar price equal to 0.999 USD at 2022-10-29. If you buy Gemini Dollar for 100 dollars today, you will get a total of 100.141 GUSD.
Since USD Coin is managed by multiple companies, the main risk is that one goes bankrupt. According to Circle, USD Coin is always redeemable 1:1 for U.S. dollars. But if Circle or Coinbase ends up going out of business, it's impossible to be 100% sure that USD Coin will maintain its value.
USD Coin is a stablecoin, and as such one USDC should always be equal in value to one dollar. USD Coin is the currently the second-largest stablecoin, with a current market capitalization of $73 billion.
Security is our #1 priority. Your non-Crypto (USDC) funds are FDIC insured, fully backed by the U.S government, up to $250,000. FDIC insured means that no matter what happens, the cash in your account (up to $250,000) is safe. On the FDIC website, our partner bank Evolve Bank & Trust.
Gemini Dollar receives a low risk rating from InvestorsObserver analysis. The proprietary scoring system analyzes how much money was required to move the price over the past 24 hours. The metric looks at recent changes in volume and market cap to evaluate how much a token can be manipulated by limited trading.
How Long do GUSD Transactions Take? A GUSD transaction undergoes 25 confirmations on the blockchain, which take about 15 minutes. Transactions take longer when buying Bitcoin and/or using bank transfer. People who exchange GUSD for Bitcoin need to wait 2-3 hours to send a withdrawal.
GUSD is an Ethereum ERC-20 token, which can be used in smart contract development. As such, the Gemini dollar (GSUD) can be transacted with on decentralized exchanges (DEX), allowing you to lend and earn using various DeFi apps and services.
BlockFi and other firms are able to pay high interest rates because they can charge institutional investors that want access to coins even more. The market is one of the hottest corners of crypto, with companies saying they've collected more than $40 billion in deposits.
About. GUSD is a stablecoin running on Ethereum that attempts to maintain a value of US $1.00. The supply of GUSD is collateralized by US dollars held at State Street Bank. Users can buy and redeem GUSD through the Gemini cryptocurrency exchange.
Introduction: My name is Arline Emard IV, I am a cheerful, gorgeous, colorful, joyous, excited, super, inquisitive person who loves writing and wants to share my knowledge and understanding with you.
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