Easy way to Buy FiFirst Digital USD(FDUSD) Online with Wigwam crypto app

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How to buy and hold FDUSD with Wigwam

FDUSD

1. Choose a token number that you want to buy

2. Create a wallet, where to store your crypto

3. Pay with credit card

116.69 FDUSD

4. Check your crypto in the created wallet

Why Wigwam is the best crypto wallet for First Digital USD (FDUSD) storage

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Send, Receive, Store your First Digital USD tokens free and without limitations

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Why Wigwam is the best crypto wallet for First Digital USD (FDUSD) storage

First Digital USD (FDUSD) Token review

First Digital USD (FDUSD) is a 1:1 USD-backed stablecoin introduced in June 2023 by First Digital Labs. The coin is intended to be backed by one US dollar or an asset of equivalent value held in the accounts of its regulated financial institution, First Digital Trust Limited. The coin was launched on the Ethereum and BNB Chain networks and has plans to be on other blockchains too.

The stablecoins are fully programmable providing an alternative, reliable, and cost-effective option for users interested in cryptocurrencies. It was designed for the DeFi landscape, as it allows users to leverage it for yield farming, lending, and borrowing from the lending protocols. Its programmability allows for financial contracts, escrow, and insurance without intermediaries. 

About

FDUSD is issued by FD121 Limited, a subsidiary of a Hong Kong-based financial firm called First Digital Limited. First Digital Limited was established in 2019 under Hong Kong law, it is a multi-faceted trust partner aiming to bridge the gap between the traditional and digital financial worlds. The trust provides its expertise in trustee services for structuring, custody, payroll, escrow, and administration.

First Digital Limited introduced FDUSD to encourage users and get involved in digital finance as the stablecoin reduces the volatility of the cryptocurrencies. The stablecoin is backed by one US Dollar or an asset of equivalent value held in the First Digital Trust Limited, its appointed custodian. The First Digital Trust Limited is a trust company registered, safekeeping all FDUSD reserves in segregated accounts, preventing the mingling of FDUSD reserves with other assets at the firm. The reserves are also required to be held in cash or other highly liquid assets.

FDUSD Token Use Cases

FDUSD has the following use cases in the crypto space:

Remittances: As FDUSD is a stablecoin, offering much lower fees and fast processing of transactions. It can be utilized as a fast and cost-efficient alternative for cross-border transactions, supplying an affordable choice for remittance services.

Payment Solutions: The stability and programmability of FDUSD make it easier for businesses and individuals to utilize it to process payments with lower fees, especially in the case of international transactions, where traditional payment methods are expensive due to cross-border transfer fees. 

Hedging Against Price Volatility: In the ever-changing, disruptive, and volatile crypto market, stablecoins like FDUSD offer a ray of hope as users can convert other cryptos into stablecoins lock their gains, and protect their investments from extreme market swings.

DeFi Applications: FDUSD has a diverse set of usage cases across the DeFi applications, as it can utilized for yield farming, lending, borrowing, and staking.

Furthermore, FDUSD's programmability facilitates the development of financial contracts, escrow services, and insurance arrangements without intermediaries. This versatility renders it a valuable asset for businesses and individuals seeking a stable and dependable digital currency solution.

Economic Value

FDUSD has a max supply of 2.58B, which is all out in circulation, its core principles revolve around stability. The stability is maintained through the reserves backing FDUSD as it is required to be highly liquid and secure assets such as US dollars cash or US treasury bills.

The First Digital Trust Limited issues new FDUSD tokens, backed by cash reserves held in its custody. When a user purchases FDUSD, they essentially receive tokens representing their claim on the cash USD reserves. The tokens are minted on the Ethereum and BNB chain maintaining the ERC-20 token standard.

The First Digital Trust Limited, which holds these reserves, issues an "Attestation of Reserve" report, audited monthly by independent auditors, demonstrating that the circulating supply of FDUSD is backed by an equivalent value of cash or cash equivalents securely held in custody.

FDUSD tokens are converted back into USD through a process called redemption, where users can exchange their FDUSD with the USD. The redemption process secures the value of the USD reserves and makes sure that it remains equal to or higher than the total supply of FDUSD tokens in circulation.

Challenges

FDUSD is facing many challenges such as regulatory uncertainty, security risks, operational risks, de-pegging, market adoption, and competition from other stablecoins. 

Regulation for stablecoins is in shambles and any small change in regulations can impact the operation and use of stablecoins. Operational risks and security risks include fraud and cyber risks. 

As a stablecoin FDUSD’s stability depends on its reserves locked away in a third-party’s custody, and its supply depends on many third-party exchanges, but the First Digital Limited offers no effective remedies if these exchanges are victims of such fraud or cyber attack.

The biggest challenge for FDUSD is common with any new digital currency, as it needs to gain trust among crypto enthusiasts and get an edge over its competitors like Tether, DAI, USDC, etc.

Disclaimer

This article is for informational purposes only and should not be interpreted as financial or investment advice. The views expressed herein represent solely the opinion of the author and are not intended to provide specific trading or investment recommendations. We do not guarantee the accuracy, completeness, or reliability of the information contained in this article. The cryptocurrency market is known for its high volatility and unpredictable fluctuations. Investors, traders, and anyone engaging with cryptocurrency are advised to conduct thorough research, consider a variety of perspectives, and acquaint themselves with applicable local regulations prior to making any investment decisions.

FAQ

You can buy FDUSD tokens directly on the Wigwam DeFi wallet or from centralized exchanges such as Coinbase and Binance, and decentralized exchanges such as PancakeSwap and BingX. If you are a professional investor, you can also opt to buy directly from FD121 Limited if you meet the specific criteria set by their team for professionals.

You can not stake FDUSD on blockchains, but you can stake on DeFi projects that support FDUSD to earn passive income. 

You can view it by either visiting Etherscan or BscScan and entering your wallet address in the search bar.

The exact steps may differ based on the wallet you're using, but generally, adding FDUSD tokens involves the following:

Access your crypto wallet, locate the "Add tokens" option, and input the FDUSD token details as outlined below:

  1. Token Contract Address: 0xa27b11278083d3ed3fa30c7e91f26d0cad0a6b3a
  2. Token Symbol: FDUSD
  3. Decimal Precision: With 18 Decimals

After entering the token details click on “Save” to add the FDUSD token to your wallet.

Buying FDUSD carries operational, security, regulatory, and counterparty risks, including fraud, cyber threats, reliance on third-party services, vulnerability to hacking, and regulatory uncertainties. Interactions with third-party financial intermediaries also expose users to counterparty risks, potentially causing redemption delays and higher costs. Despite this, FDUSD is rated relatively low risk by InvestorsObserver.