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Binance USD
Do you want to join virtual currency trading (or even just trade stocks) but feel overwhelmed with all of the options? If so, you’re not alone! Virtual currency can be a confusing and overwhelming thing to begin learning.
Virtual currency is becoming more mainstream and the market is expanding, giving people more and more opportunities. One of the most popular new assets on the market that you might have heard of is Binance USD or BUSD.
BUSD is a fiat-backed stablecoin which means 1 BUSD is equal to 1 USD. So it’s a stable asset and has all of the advantages of trading cryptocurrencies without some of the risks associated with volatility in other coins.
In this article, we’ll break down what BUSD is, how to use it, and why it could be an ideal choice for those just getting started in crypto.
What is Binance USD (BUSD)?
BUSD stablecoin is pegged to the US dollar at a 1:1 ratio. BUSD is issued by Paxos Trust Company, a regulated financial institution that is also responsible for holding the dollars that back the fixed trading rate asset. Binance Chain is a high-performance blockchain designed for the fast and secure trading of digital assets. BUSD was launched in September 2019 and is designed to offer a more stable and predictable digital asset compared to cryptocurrencies like Bitcoin, whose values can fluctuate rapidly.
BUSD can be used for a variety of purposes, including trading on cryptocurrency trading platforms, making purchases online, and sending and receiving payments globally. It is supported by many different wallets, trading platforms, and other services within the virtual currency ecosystem.
BUSD has become increasingly popular due to its stability and reliability, which makes it a good option for investors and traders looking to hold a digital asset that is less volatile than other cryptocurrencies. Additionally, BUSD has gained regulatory approval in multiple jurisdictions, which adds to its credibility and legitimacy as a digital asset.
The partnership with Paxos and Binance
Binance USD (BUSD) and Paxos have partnered to provide a more reliable and transparent stablecoin that is backed 1:1 by US dollars. BUSD is issued on Ethereum by Paxos. The partnership between the two companies is designed to provide BUSD users with greater confidence in the stability and security of the stablecoin.
The partnership with Paxos provides the regulatory oversight and technology infrastructure necessary to ensure that BUSD is fully collateralized with US dollars. This means that for every new BUSD token in circulation, there is a corresponding US dollar held in reserve by Paxos. This helps to ensure that BUSD maintains a stable value of $1.00 USD.
In addition to providing greater transparency and security, the partnership between Binance and Paxos also allows for greater scalability of BUSD. With Paxos’ blockchain technology and regulatory expertise, BUSD can be easily integrated into a wide range of financial products and services, including trading platforms, payment systems, and investment products.
However, the BUSD on the BNB Chain, Polygon, and Avalanche are produced independently by Binance and not by Paxos; as a result, they are not subject to the NYDFS’s regulation. In a strict sense, these should be referred to as Binance-Peg BUSD since Binance independently mints these tokens and fixed exchange rate them to BUSD on a one-to-one basis.
In February 2021, Paxos stopped allowing new BUSD to be minted, causing concern among users.
The reason for Paxos’ decision to stop allowing BUSD minting was due to an unexpected increase in demand for the stablecoin. This increase in demand was largely driven by the rise of decentralized finance (DeFi) platforms and the popularity of yield farming, where users deposit stablecoins to earn interest or rewards.
Paxos had not anticipated such a significant increase in demand for BUSD. The sudden influx of new minting requests caused operational issues and put pressure on the platform’s ability to maintain the peg to the US dollar. To ensure the stability and integrity of the BUSD stablecoin, Paxos decided to halt new minting requests temporarily.
Paxos later resumed BUSD minting in a limited capacity, with a cap on the amount of BUSD that could be minted daily. The platform also implemented measures to manage and control the demand for BUSD, including adjusting fees and increasing the transparency of the minting process.
Other Partnership with Binance USD
Binance USD (BUSD) has formed several partnerships with various companies and platforms to increase its usability and adoption. Here are some notable partnerships:
- Swipe: Binance acquired Swipe, a multi-asset digital wallet, and Visa debit card platform, in 2020. BUSD can be used with Swipe’s Visa debit card for everyday purchases, and BUSD can also be stored in the Swipe wallet.
- Crypto.com: BUSD is one of the fiat-collateralized supported by the Crypto.com platform. Users can deposit, withdraw, and trade BUSD on the platform.
- Alchemy Pay: BUSD is accepted as a payment method by Alchemy Pay, a global virtual currency payment gateway provider that enables merchants to accept virtual currency payments.
- Gemini: BUSD is also available on the Gemini exchange, a regulated virtual currency trading platform and custodian platform.
Overall, these partnerships have expanded the reach and utility of Binance USD, making it more accessible to users across various industries and use cases.
What are the benefits of a Binance USD?
The advantages of using BUSD include easier access to trading pairs and liquidity on Binance’s crypto trading platform, as well as quicker and less expensive transactions when compared to using traditional fiat currency. Peer-to-peer exchanges, remittances, and value storage are some uses for BUSD. The New York State Department of Financial Services also regulates BUSD, adding another level of security and transparency for users.
What makes Binance USD unique?
Here are a few things that make it unique:
- Trustworthiness: BUSD is issued by Binance, one of the world’s largest and most reputable virtual currency trading platforms. Binance is known for its robust security measures and regulatory compliance, which makes it a trustworthy stable-value crypto.
- Low Volatility: BUSD’s value is designed to remain stable at $1 USD, which means that it is less volatile than other cryptocurrencies. This makes it an attractive option for people who want to hold virtual currency without worrying about its value fluctuating wildly.
- Accessibility: BUSD is available to anyone with a Binance account, which makes it easy to acquire and use. It can also be used on other platforms that support the ERC-20 standard, such as wallets, trading platforms, and decentralized applications.
- Transparency: Binance provides regular attestations of USD reserves, which means that users can verify that their token is backed by US dollars.
Where to buy or sell Binance USD?
Stablecoin Binance USD (BUSD) is available for purchase or sale on a number of crypto exchanges. You can buy BUSD directly on the Binance cryptocurrency exchange and many different trading platforms, including Binance, Huobi, and OKEx. You can also sell BUSD on these trading platforms or to Binance directly. Please be aware, nevertheless, that trading cryptocurrencies can be hazardous and volatile, and that you should understand the risks before making an investment.
How to buy BUSD?
To buy Binance USD (BUSD), you need to create an account on a virtual currency trading platform that supports its trading, complete the verification process, fund your account, search for BUSD on the trading platform, place a buy order, confirm the transaction, and withdraw the BUSD to a compatible wallet or use it for trading on the exchange. Specific steps and requirements may vary depending on the trading platform and your location.
How to mine Binance USD?
It is not a mineable cryptocurrency, which means it cannot be obtained through mining. Instead, BUSD can be purchased or traded for other cryptocurrencies on Binance or other supported exchanges. You can store Binance USD in virtual currency wallets that support ERC-20 tokens (Ethereum) or BEP-2 tokens (Binance Smart Chain).
How does BUSD compare against its competitors?
Its main competitors in the stable-valued crypto market include USDT (Tether), USDC (USD Coin), DAI, and TUSD (TrueUSD).
BUSD, which debuted in 2019, is relatively new in comparison to its rivals. But because of its connection to Binance, one of the world’s biggest virtual currency trading platforms, it has rapidly grown in popularity. BUSD is more open and reliable than some of its rivals because it is likewise based on the ETH blockchain and is fully backed by USD kept in reserve.
Although USDT has the greatest experience and is now the most popular stablecoin, there has been considerable debate over its transparency and financial support. Due to its affiliation with Coinbase, another significant virtual currency trading platform, and its emphasis on regulatory compliance, USDC is becoming more and more well-known. Some users may prefer DAI because it is a decentralized stablecoin that is not supported by any centralized organization. Another completely collateralized and routinely audited stablecoin is TUSD, however, it has a smaller market share than the others.
Binance USD History
The founder of Binance USD is a stablecoin pegged to the value of the US dollar. It was launched in September 2019 by Binance, one of the world’s largest cryptocurrency trading platforms. Binance provides a stable value for users who want to hold funds in crypto without worrying about the volatility of other cryptocurrencies like BTC or ETH.
BUSD is built on the Ethereum blockchain and is ERC-20 compliant, which means it can be used on any decentralized application (dApp) that supports the Ethereum network. BUSD is also approved by the New York State Department of Financial Services (NYDFS), which provides users with additional security and confidence in the stability of the token.
Binance USD has gained popularity among traders and investors as a stable and reliable way to store value during times of market volatility. BUSD can be used to buy other cryptocurrencies on the Binance exchange, as well as to purchase goods and services from merchants that accept BUSD.
BUSD Price Statistics
BUSD to USD Price Today
Market cap of BUSD
Circulating Supply
What is the all-time high and all-time low for Binance USD (BUSD)?
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