$USDC 1. What is the nature of USDC?

• USDC (USD Coin) is a stablecoin pegged to a value of 1 USDC ≈ 1 USD.

• It is not a token for speculative profit/loss like BTC, ETH, etc.

• Main purpose: used for currency conversion, storing stable value, or trading pairs with other coins.

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📉 Why can USDC experience slight price fluctuations?

• Due to supply and demand imbalances in the market or temporary thin liquidity on some exchanges.

• Fluctuations are usually very small: 0.999 – 1.001 USDT (0.1% or less).

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🟥 Should we long/short USDC?

• No, because:

• There is not enough volatility to profit from leverage or derivative trading.

• There is no clear trend like BTC, ETH, SOL, etc.

• Not suitable for traders – should only be used as cash in the crypto market.

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✅ So when should USDC be closely monitored?

1. When there is FUD news about Circle (the issuer of USDC):

For example: the depegging that occurred during the US banking crisis (SVB in 2023).

2. When the financial system faces instability, stablecoins may lose their peg in the short term → that is when to monitor to:

• Swap to USDT/BUSD if safety is needed.

• Or take advantage of arbitrage opportunities if experienced.

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📌 In summary:

• USDC is not suitable for trading in a long/short manner.

• You should only use USDC as cash in the market, not as a profit-generating investment asset.

• If you want to analyze more about related pairs like ETH/USDC or BTC/USDC, I can assist in that direction.