What is the ETH/USDC pair
The ETH/USDC pair is a trading pair on cryptocurrency exchanges, including Binance, where Ethereum (ETH) is traded against USD Coin (USDC). USDC is a stablecoin pegged to the US dollar at a 1:1 ratio, making it a stable instrument for trading cryptocurrencies.
Features of the ETH/USDC pair
- Price stability: Unlike volatile pairs with other cryptocurrencies, using USDC provides a more stable basis for valuing ETH.
- Liquidity: The ETH/USDC pair usually has good liquidity, allowing for trades with minimal slippage.
- Regulatory transparency: USDC is considered one of the most regulated and transparent stablecoins, making the pair attractive to institutional investors.
Comparison with ETH/USDT
Although ETH/USDT usually has a higher trading volume, the ETH/USDC pair is often chosen by traders seeking additional stability and transparency. Prices on both pairs are typically very close, with minimal discrepancies that can create arbitrage opportunities.