How to manage stablecoins (USDC, DAI, USDT) with Ledger Live

This article provides step-by-step instructions on how to manage stablecoins (USDC, DAI, USDT) with Ledger Live. It's worth noting that stablecoins can exist on different networks, for example, USDC can be purchased on the Ethereum (ETH) network, the BNB Chain network, the Polygon network and many others. This article provides instructions for managing stablecoins (USDC, DAI, USDT) with Ledger Live, using ERC-20 and TRC-20 versions on Ethereum and TRON networks as examples. However, the same principles can be applied to other versions of stablecoins on different networks.

Before you start

• Update Ledger Live through the notification banner or download the latest version.
• Update the firmware of your Ledger Nano S / Nano S Plus / Nano X.

About Stablecoins

Stablecoins are cryptocurrencies that are pegged to the value of a specific asset, such as the US dollar. They are designed to provide stability and reduce volatility in the cryptocurrency market. The market value of a stablecoin is typically the same across different networks because it is pegged to a specific asset, such as the US dollar. However, there may be small differences in the market value due to varying supply and demand for the stablecoin on different networks. Additionally, the price of stablecoin may also be affected by the transaction fee on different networks.

In general, it's important to check the network and the symbol of the stablecoin when buying or selling them, to make sure you're getting the right one. 

• USDC is a stablecoin that is pegged to the value of the US dollar. It is issued by the CENTRE consortium, which is backed by Circle and Coinbase.
• DAI is a decentralized stablecoin that is pegged to the value of the US dollar. It is created and managed by the MakerDAO community.
• Tether is a stablecoin that is pegged to the value of the US dollar. It is issued by Tether Limited.

Which network is best to store my stablecoin?

Choosing the right network to store your stablecoin depends on various factors, and ultimately, the decision rests on what aligns best with your needs and preferences.

Here are a few important considerations to guide your choice:

• Security: If your priority is security, you might lean towards an account on a more decentralized network like Ethereum (ETH). However, this comes with the trade-off of higher transaction fees.

• Liquidity: Planning to trade substantial amounts of stablecoins? You might want to consider networks with higher liquidity. For instance, the Tron network is quite liquid with assets like USDT Tether.

• Transaction Fees: If minimizing fees is a priority, networks like Ethereum, known for higher transaction costs, might not be the best fit. Instead, consider more cost-effective networks such as Tron, Polygon, Arbitrum, Optimism, or Binance Smart Chain (BNB).

• Dapps: Different networks support various dapps. If you plan to use your stablecoins for on-chain lending or liquidity provision, ensure that the chosen network supports the necessary dapps to facilitate your activities.

Remember, each network comes with its own set of advantages and disadvantages. Weigh these aspects carefully to select a network that best accommodates your stablecoin storage needs.

How do I use USDC with Ledger?

1. Connect and unlock your Ledger device.
2. Open Ledger Live and navigate to My Ledger.
3. If asked, allow access to My Ledger by simultaneously pressing both buttons on your device.
4. In My Ledger, search for Ethereum (ETH) and click Install.
5. Navigate to Accounts and click Add account.
6. Select Ethereum (ETH) and click Continue.
7. Navigate to the Receive tab, select your ETH account and click Continue. Ledger Live and your Ledger device will display your Ethereum address.
8. Verify this address on your device and click Confirm. This address can be used to deposit your USDC.

How do I use DAI with Ledger?

1. Connect and unlock your Ledger device.
2. Open Ledger Live and navigate to My Ledger.
3. If asked, allow access to My Ledger by simultaneously pressing both buttons on your device.
4. In My Ledger, search for Ethereum (ETH) and click Install.
5. Navigate to Accounts and click +Add account.
6. Select Ethereum (ETH) and click Continue.
7. Navigate to the Receive tab, select your ETH account and click Continue. Ledger Live and your Ledger device will display your Ethereum address.
8. Verify this address on your device and click Confirm. This address can be used to deposit your DAI.

How do I use Tether (USDT) with Ledger?

1. Connect and unlock your Ledger device.
2. Open Ledger Live and navigate to My Ledger.
3. If asked, allow access to My Ledger by simultaneously pressing both buttons on your device.
4. In My Ledger, search for Tron (TRX) and click Continue.
5. Navigate to Accounts and click +Add account.
6. Select Tron (TRX) and click Install.
7. Navigate to the Receive tab, select your TRX account and click Continue. Ledger Live and your Ledger device will display your Tron address.
8. Verify this address on your device and click Confirm. This address can be used to deposit your Tether.