When it comes to acquiring USDC, many users find themselves navigating a landscape that can seem perplexing. The primary hurdle is that USDC is generally traded on cryptocurrency exchanges,which frequently enough do not allow direct purchases wiht fiat currencies like the US dollar. As a result, users must first convert their dollars into another cryptocurrency, such as Bitcoin or Ethereum, before they can exchange those for USDC.This is due to a combination of factors, including regulatory requirements and the nature of cryptocurrency exchanges that focus on trading crypto-to-crypto pairs.
The process of purchasing USDC via an intermediary token introduces additional considerations for both new and seasoned users. Here are several reasons why this approach has become the norm:
- Regulatory Compliance: Many fiat onramps require extensive vetting and compliance, making direct purchases challenging.
- Market Liquidity: Exchanges often prioritize the liquidity of popular cryptocurrencies for trading pairs, making it simpler to buy and sell.
- Security: using well-established cryptocurrencies as intermediaries can provide a layer of trust for users who are new to digital assets.
