Cryptocurrency exchange Coinbase wants to boost USDC credential by letting you earn rewards when you keep USDC on your Coinbase account. Basically, if you are an American customer, then your Coinbase base The account became a 1.25% Uninsured Savings Account on APY Rewards.
If you’re not used to USDC, it’s a stable currency backed by CENTER, a group of companies operating in cryptocurrency space. The value of the USDC is exactly one, and CENTER members save the dollar in regular bank accounts whenever they issue USDC codes. CENTER members currently hold more than $ 1 billion in backup bank accounts, issuing over $ 1 billion.
In addition to price stability, stable currencies work just like any other ERC-20 codes. You can keep it in a cryptocurrency wallet, you can send and receive it, and you can exchange it.
When you want to buy some bitcoins on Coinbase, users usually transfer some money to their account and then convert USD to BTC. However, it may take several days to transfer money to a Coinbase account, which means that you may miss some significant price changes.
On the contrary, if you sell some bitcoins on Coinbase, chances are that you will exchange this BTC in USD and then transfer your USD balance to your bank account. If you want to buy some bitcoins again in the future, you will need to go through the same lengthy process.
Coinbase pitch is simple: whenever you are converting your crypto assets and you end up in US dollars, leave them on the platform as USDC.
You don’t have to do anything to accept USDC rewards, as qualified Coinbase users will start earning rewards starting now. If you currently hold USDC, you will notice that you have some “pending rewards”.
Coinbase calculates the rewards in real time, which means that you will earn rewards even if you carry a large amount of USDC for a few hours and then transfer everything. But your Coinbase account is added to rewards only once a month.
Currently, the APY reward rate is 1.25%, but Coinbase can change this rate in the future. It is also worth noting that your Coinbase wallet is not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investors Protection Corporation (SIPC). Update: Coinbase offers insurance coverage.
Don’t put all your savings on Coinbase, you might lose everything if you get tricked. Coinbase will not be held responsible.
So who exactly is eligible? Currently, the feature is limited to US customers who do not live in Hawaii or New York State. You must verify your account (Level 2) and keep at least 1 USDC.
If you earn more than $ 600 of USDC bonuses in one year, Coinbase will send a MISC 1099 form so you can report your earnings with the IRS.