Binance USD (BUSD) is a stablecoin from the Binance exchange. How to use it?

What is Binance USD. Advantages and disadvantages

Binance USD (BUSD) - Regulated stablecoin, which is provided fiat and is pegged to the US dollar. There is one reserve US dollar for every unit of BUSD. In other words, the available supply of BUSD is pegged to the US dollar at a ratio of 1:1 (1 BUSD = $1). BUSD holders can exchange tokens for fiat currency and vice versa. The issuer of the Paxos token conducts a monthly BUSD inventory audit.

As you might guess, crypto exchange Binance directly related to the development of this stablecoin, which is why this coin is called Binance USD.

Как stablecoin, BUSD is designed to maintain a stable market value. It allows investors and traders to store assets on the blockchain without the threat of volatility and without having to take them out of the crypto space.

Advantages:

• Cheap and fast transactions. The BUSD coin has a high transaction speed. Block formation on the network is 1 second, while on the network Bitcoin this will take ~10 minutes. In addition, when transferring, a minimum commission of ~0.8$ is charged.
• Fiat reserves. fiat currency held in FDIC insured banks. It is 100% secured and pegged to the US dollar.
• Capitalization. At the time of writing, the BUSD token is in fifth place in terms of market capitalization.
• Acceptance level. Like Tether, BUSD is used when fixing a profit, when trading, as well as for converting cryptocurrency into Fiat. Steyblecoin supported and promoted by the crypto exchange Binance and due to this it is popularized.

Disadvantages:

• Centralization. Paxos is responsible for issuing and burning tokens, so users are forced to trust their security to a centralized company. This is not entirely consistent with the principles of cryptocurrencies.
• Tight regulation. All BUSD issuance/burning operations are tracked. In case of suspicious transactions, the user's account may be frozen.

Why you should use Binance USD

First of all, it is worth noting the fact that BUSD is one of the leaders in the market stablecoins. BUSD has fundamental features stablecoins – lack of exchange rate volatility, stability in the market, transparency, security, risk minimization. BUSD is characterized fiat type of collateral, and the underlying fiat the currency is the US dollar. The BUSD exchange rate always strives for a 1:1 ratio with USD, but the token does not provide an opportunity to make a direct exchange for the US dollar.

Another advantage is low commissions, which are ~0.5-1$ in BEP-2 and BEP-20 networks, as well as high transaction speed.

BUSD allows traders to use the coin to hodle (hold cryptocurrency regardless of the market price) without worrying about volatility. Also, recently the token is often used in the areas of Move-to-Earn, NFT, etc. In the case of HYIPs, BUSD is not very common yet, but we believe that everything is ahead. In fact, this is the same dollar, only in cryptocurrency, like Tether. When the market turns bearish, then with this stablecoin you can protect your digital assets from sudden price spikes and protect yourself from losses.

Binance USD protocols

All you need to know about Binance USD protocols is that the coin supports networks Ethereum and Binance Smart Chain.

Online Ethereum for exchange, you can use the ERC-20 protocol, but let’s say right away that this network has a minus - high commissions for transactions, as well as a long transfer time.

Therefore, you can most often find BUSD on the Binance Smart Chain network, namely using the BEP-2 and BEP-20 protocols, which allow you to exchange funds as quickly as possible with minimal commissions.

Please note that when translating, it is very important that the networks match (ERC-20, BEP-2, BEP-20). Otherwise, you will lose your money.

Binance USD Instructions

First of all, it is worth noting that there are several ways to buy BUSD:

• Exchangers... Probably, the easiest way is to mark the exchangers, because you just need to choose the direction of exchange, fill out the form and complete the operation. Recall that it is best to use the monitoring exchangers the Bestchange.r and choose the exchanger that suits you. Please note that the minimum exchange amount may not always match yours. There are also monitoring-exchangers Kurs.expert и bitcoinmarket.global, which can also be used;
• Exchange. This is not to say that it is difficult to buy BUSD on exchanges. It is very likely that the exchange you are using will have one or most of the BUSD protocols. To buy, we recommend using the exchanges Binance.com и bybit.com.

We have already written about this, but it is worth mentioning again that when buying BUSD, you need to pay attention to the network and address format. If you, for example, send BUSD BEP-2 to BUSD ERC-20, you risk losing your money.

Above we have analyzed the most popular ways where you can store BUSD, but there are other options:

• Wallets for BUSD ERC-20: metamask.io, trustwallet.com, guarda.com, trusteeglobal.com;
• Wallets for BUSD BEP-2: Binance Chain Wallet Extension, Binance DEX Wallet, coinomi.com, trustwallet.com, mathwallet.org;
• Wallets for BUSD BEP-20: Binance Chain Wallet Extension, trustwallet.com, mathwallet.org, metamask.io, freewallet.org;
• Hardware Wallets: Ledger, Safe deposit, safepal..

Conclusion

At the moment, BUSD is one of the leading tokens on the market. stablecoins. The token was created by a popular crypto exchange Binance.com backed by issuer Paxos, which audits BUSD holdings on a monthly basis.

BUSD can be used both for trading cryptocurrencies and already for working with HYIPs. The token is of course not as widespread as Tether in the HYIP industry, but we believe that everything is ahead. Gradually, this cryptocurrency is being introduced into projects and we hope that many admins will connect it.

It will be most beneficial to use BUSD in the BEP-2 and BEP-20 networks in the form of the fact that in relation to the ERC-20 protocol, they have small commissions and transaction speeds.

In this article, we have analyzed: the Binance USD (BUSD) cryptocurrency, its advantages and disadvantages, why you should start using it, analyzed what protocols the BUSD cryptocurrency works on, and also gave small examples of working with the coin.

Write in the comments which wallets you use and consider convenient for PC or mobile devices, there may have been some problems with certain wallets. Who will have difficulties in buying or selling, questions on creating wallets, you can write to the contacts provided below. We will definitely help and advise you!

We hope this article was helpful to you. All successful and profitable investments!