How and Where to Buy Binance USD (BUSD)
Founded in 2017, Binance is the world’s largest cryptocurrency exchange by trading volume. The platform has over 1600 markets and more than 390 cryptocurrency tokens (as of March 2022) and is a popular exchange for crypto traders, enthusiasts, and investors.
The founder & CEO, Changpeng Zhao, a Chinese-Canadian business executive, has taken the crypto exchange to extraordinary heights. He has created a complete crypto ecosystem, including Binance Charity, which was cast into the spotlight for donating $10 million to assist Ukrainians in the Russia-Ukraine war.
Binance launched Binance USD (BUSD) on 5th September 2019, partnering with the Paxos Trust Company, a fully regulated organization that safeguards physical and digital assets. Paxos is the USD custodian and issuer of $BUSD.
What is Binance USD (BUSD)?
“BUSD is a 1:1 USD-backed stablecoin approved by the New York State Department of Financial Services (NYDFS), issued in partnership with Paxos.” – Binance website
Because of the Paxos partnership, $BUSD is a highly regulated cryptocurrency stablecoin. The objective of $BUSD is to combine dollar stability with blockchain technology. As such, it is a digital fiat currency, in this case, U.S Dollars. Meaning that when you purchase or redeem digital U.S dollars for $BUSD, it has the same value because $BUSD is pegged 1:1 to the U.S dollar. It’s issued as ERC-20, and it supports BEP-2.
ERC-20 is an Ethereum scripting standard with actions and rules that a smart contract or Ethereum token must follow to implement it.
BEP-2 is also a technical standard on the Binance Smart Chain (BSC) for issuing and implementing tokens. It has a defined set of rules that enable tokens to function in the BSC ecosystem. It is compatible with the ERC-20 standard.
Because $BUSD is supported on ERC-20 and BEP-2, it results in a super-fast and low-cost blockchain transfer of your dollars, minutes in most cases.
You can purchase and redeem $BUSD with zero fees, though Binance states that you may incur bank charges for wire transfers
What makes Binance USD (BUSD) Unique?
- Transfer $BUSD – on the blockchain anywhere in the world, fast and with low fees
- Trade $BUSD – trade on decentralized exchanges (DEX) where you can securely conduct peer-to-peer cryptocurrency transactions without “middleman” intervention
- Deposit $BUSD – earn an interest rate
- Pay for goods and services – use your $BUSD coins as payment
- Collateral and loan assets – use your $BUSD tokens to borrow against
- Cross collateral – you can use $BUSD as cross collateral in Futures (where you agree to buy something at a predetermined price in the future)
- Store $BUSD – secure your $BUSD tokens on an exchange or in a crypto wallet
The BUSD Ecosystem
The BUSD ecosystem is vast and growing exponentially. At the beginning of 2021, the stablecoin had around $1 billion market capitalization. By the close of 2021, market capitalization stood at $14.6 billion, making $BUSD the third-largest stablecoin behind $USDC and $USDT.
Such significant growth is likely because of the widespread adoption of $BUSD. Many CEXs (centralized exchanges) and DEXs (decentralized exchanges) support $BUSD, and so do other platforms and wallets. A few examples are listed below: –
- Wallets include – Trust wallet, MetaMask, Trezor, and Zapper
- Travel booking site -Travala
- Payment gateways – Moonpay and Banxa
- Payment APIs – Wyre
- Multicurrency payment services – Paylot, ivendPay
- DEXs – PancakeSwap, Uniswap, 1inch, MDEX, Ellipsis, Curve Finance, and SushiSwap
- CEXs – FTX, MEXC, WazirX and Gate.io for using $BUSD outside of Binance.US and Binance exchanges
- DeFi Protocols (for yield earning) – Aave and yearn.finance and more
- Yield Lending and Farming – Binance, Celsius and Blockfi and more
How and Where to Buy Binance USD (BUSD)
Binance is an established and trusted cryptocurrency exchange. You can purchase $BUSD for zero fees or top up your Binance cash wallet with fiat currencies or cryptocurrencies to exchange for $BUSD
Buying $BUSD tokens on the Binance platform is a relatively fast and stress-free experience.
- Register for an account with Binance – verify your account for extra security
- Go to “Deposit Fiat” – Binance offers several fiat currencies
- Choose deposit options – Purchase 1:1 via a wire transfer, use Visa or Mastercard or deposit cryptocurrency
- Open the exchange tab – $BUSD is paired with BUSD/USDT
- Choose a currency pair and make your purchase
- Store your $BUSD tokens – Binance has an exchange wallet, or you can choose an off-ramp cold storage wallet to secure your $BUSD holdings
How do I Sell Binance USD (BUSD)?
It’s easy to sell your $BUSD tokens on the Binance exchange: –
- Sell your $BUSD holdings for a fiat currency like Euros (EUR) on the EUR/BUSD pairing
- Withdraw your EUR to your bank account
There are zero fees for converting $BUSD. If you have a large number of $BUSD to sell, contact the Binance OTC desk for advice.
Should I Buy Binance USD (BUSD)?
Although we cannot provide investment advice, if you wish to invest in Binance USD (BUSD), Binance is the world’s largest cryptocurrency exchange with a good reputation. The platform offers Trust Wallet, a reputable open-source mobile wallet app available for iOS and Android.
How do I invest in Binance USD (BUSD)? Safely?
If you wish to invest in $BUSD tokens, purchase from a reputable cryptocurrency exchange such as Binance or Binance.US. After purchase, it’s advisable to store your $BUSD tokens securely in a cryptocurrency wallet.