Key takeaways
USD Coin (USDC) is a stablecoin pegged to the US Dollar. It is widely accepted across the crypto ecosystem and is available on multiple blockchains including Base Network.
To buy USDC Base Network tokens, you can purchase USDC directly on an exchange like Coinbase. Then select the Base Network when making transactions.
USDbC is a bridged version of USDC created for developers to use on the launch of the mainnet. It enables you to transfer Ethereum USDC to the Base Network.
When using USDC on Base, it is critical to double-check the recipient address and network to avoid transaction errors and losing your funds.
USD Coin (USDC) is a stablecoin cryptocurrency that is pegged 1:1 to the US dollar. That means 1 USDC is always $1. It is issued by Circle and has grown to become a top 10 cryptocurrency with a market cap of over $40 billion by the end of 2024.
The stablecoin is available on most major cryptocurrency exchanges and is widely accepted in the digital economy. Additionally, it is available across a number of different blockchains, including the Base Network.
Below, you will learn the step-by-step process of buying USDC on the Base Network. In addition, you’ll get a complete rundown of how the Base Network links to the Ethereum blockchain. So, by the end, you understand how to purchase and start using USDC safely and effectively.
Why use USDC on Base
So why would you want to use USDC on Base if you can already use it on Ethereum?
USDC on Base is a native stablecoin for the Base blockchain, providing a stable and low-cost payment solution within the network. It allows seamless interaction with Base’s ecosystem of decentralized finance (DeFi) applications, such as lending, borrowing and yield farming, all with lower fees compared to Ethereum.
On the other hand, USD Base Coin (USDbC) is a bridged version of USDC specifically for use on Base at the time of its mainnet launch. It allows users to move USDC from Ethereum to Base.
How to buy USDC on Base Network
You could use Coinbase or any other exchange (supporting the stablecoin) to buy USDC on Base Network. 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. You can then select the Base Network when making transactions to send your USDC on Base.
Here are the steps to buy USDC on Base Network using Coinbase:
1. Create and fund a Coinbase account
You’ll need to create and verify an exchange account. Then, deposit fiat money (or crypto) into the account.
2. Buy/convert your funds to USDC
Using the right sidebar, select USDC and input the amount you’d like to purchase before confirming the transaction. This will give you USDC in your account.
3. Use USDC on Base
The clever feature of the Coinbase platform is that it tracks all versions of USDC in a single asset account and then bridges it, depending on the chain you want to use.
So, if you want to send your USDC to a Base application or wallet, just select the Base Network and Coinbase will route the USDC through Base.
Similarly, you can send USDC on Base to your regular Coinbase USDC address. Outside of Coinbase, you may see your funds displayed as USDbC, indicating that they are on the Base Network, but they retain the same value and functionality as USDC.
Did you know? USDC is fully backed by US dollar-denominated assets. So, there is one dollar held in reserve for each USDC in circulation. This makes it relatively stable, but both the USDC and USDbC prices can fluctuate fractionally, sometimes as much as $0.01
USDC vs USDbC
USDC Base Coin (USDbC) is a bridged version of the USDC stablecoin that runs on the Ethereum blockchain. The original USDC cryptocurrency is pegged 1:1 to the US dollar, meaning one token is always worth $1. This is also true for bridged versions of the coin, which enable it to be used on layer-2 blockchains.
Base is one of these layer-2 blockchains. It is a network developed by Coinbase that was designed to solve issues of scalability on Ethereum. In simple terms, Base is a blockchain built on top of Ethereum. It inherits the fundamentals and security of Ethereum, but has different protocols added to offer more flexibility and scale.
To use the Ethereum USDC stablecoin to transact on the Base blockchain, you need to “bridge” or transfer it across blockchains. When you bridge a USDC token, the original USDC is locked to the Ethereum network. Then, you are given the equivalent amount of USDbC on the Base Network.
You can then freely transact on Base with the relevant stablecoin tokens, plus you can always reverse the bridge to move back to the original Ethereum USDC.
To make things easier and remove some of these technicalities, several platforms enable you to buy USDC on Base using fiat and other cryptocurrencies.
How to transfer USDC from Ethereum to Base
Here are the steps to bridge USDC from Ethereum to Base:
Setting up your wallet: To start, you’ll need a USDbC-compatible crypto wallet. You can add Base tokens to wallets like MetaMask for self-custody or use the native Coinbase wallet and app.
Bridging with self-custody: If you already own USDC and want to bridge it to the Base Network, then you can do this via the Base website. Simply choose from Ethereum to Base and select the USDC asset. Then, connect your wallet and complete the transaction.
Tips and best practices for Base Network USDC transactions
When using USDC on Base, it’s important to follow a few best practices to ensure you don’t make a mistake and lose your funds. Transactions can get tricky, especially when dealing with bridged or wrapped tokens. Here are some key things to check before completing a USDC transaction on the Base Network:
Double-check the recipient address and network: If you make a mistake and send your USDC tokens to the wrong wallet address, then you won’t be able to reverse the transaction. For example, make sure both the sender and recipient are using USDC Base compatible crypto wallets or accounts.
Make sure you select the Base Network when sending USDbC: Attempting to send bridged tokens to the wrong network could also result in total loss. For example, you shouldn’t attempt to send USDbC to Ethereum or Solana chains directly. It can be an easy mistake to make.
Always choose a secure and reputable wallet provider or platform: Never interact with a wallet or platform you are not sure about.
By following these steps and staying cautious, you can safely use USDC and USDbC on the Base Network without risking your assets. Always stay informed and double-check every detail before making a transaction to ensure a smooth experience.
