Binance USD (BUSD) is a trusted centralized stablecoin issued by Paxos in partnership with the Binance exchange. Stablecoins, due to the immutable nature of their prices, serve as a perfect alternative to fiat in crypto trading. However, it is important that the price is really fixed and that each coin is backed — this is guaranteed in the case of BUSD.
In today’s article, we will explore the process of purchasing BUSD cryptocurrency hassle-free. If you’re interested in buying BUSD, we’ve prepared a step-by-step guide to help you navigate the process. Let’s get started!
What Is Binance USD (BUSD)?
Binance USD (BUSD) is a stablecoin with a 1:1 peg to the US dollar backed by the Binance cryptocurrency exchange and the Paxos blockchain infrastructure platform.
Paxos dollar stablecoin has been available for trading on the Binance platform since September 12, 2019. Its launch aims to help leading international retailers, global telecommunications providers, payment platforms, cryptocurrency exchanges, and other services that regularly process payments for millions of users. With the help of stablecoins, platforms can provide instant transactions within the ecosystem with minimal costs.
Each BUSD stablecoin is backed by fiat assets. Thus, the issuer guarantees the stability of its exchange rate, combined with the efficiency of blockchain technologies:
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- Users can make transactions 24/7 at their convenience.
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- The economic efficiency of trade in goods and services is increasing.
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- A platform using BUSD automatically gets more liquidity.
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- Users do not need to open and maintain a bank account to use US dollars.
Paxos acts as a qualified custodian, ensuring that fiat assets are held in dedicated cash accounts with US banks at a 1:1 ratio, either in treasury bills or FDIC insured. The availability of funds is checked monthly to confirm the exact match with BUSDs in circulation.
How to Buy Binance USD (BUSD) Cryptocurrency?
If you’re wondering how to buy BUSD, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy BUSD in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
How to buy BUSD with USD? At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, Google Pay & Apple Pay, and local Asian banks)
Here is an easy step-by-step guide on buying BUSD at Switchere!
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- Visit our website and log in to your account.
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- Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Buy’ button.
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- Specify your BUSDBSC wallet address and click on the ‘Buy’ button.
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- Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.
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- Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased BUSD will be sent to your provided wallet address accordingly.
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- Congratulations! The transaction is completed, and now you can check your BUSDBSC wallet.
Usually, Switchere transactions take 5-30 minutes. If you have any issues with the exchange process, let us know at customercare@switchere.com.
Key Advantages of Binance USD (BUSD)
If we talk about stablecoins in general, they can be divided into centralized, decentralized, and algorithmic. Each type has its own advantages and disadvantages.
For regulated stablecoins, the main indicator of reliability and stability is the amount of funds in accounts — it must be equal to or greater than the number of tokens in circulation. Moreover, it must be provable via transparency or regular audits. For example, USDT, the most popular stablecoin, is popular mainly due to the fact that it is one of the first, but it is not doing well with reserves.
BUSD is said to offer three advantages over other stablecoins on the market:
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- Absolute security. Each BUSD in circulation is backed by a dollar held in the Paxos reserve.
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- Strict regulation. The project is regulated by the New York State Department of Financial Services (NYDFS).
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- Cost-effective trading opportunity on Binance. BUSD trades on the Binance exchange are conducted with zero commission (for limit orders).
Thus, BUSD is one of the safest and most convenient stablecoins for holding capital and trading, which can also be used in various Binance investment tools.
Conclusion
Cryptocurrency volatility is a phenomenon that has its pros and cons. On the one hand, all traders and investors can earn from crypto volatility. On the other hand, cryptocurrency cannot become a full-fledged trading asset due to price fluctuations.
Stablecoins are intended for those who want to have a digital analog of a fairly stable world currency, in this case, the US dollar. It is important that its price does not fluctuate but always remains at the level of $1. Binance USD generally meets these requirements and has important benefits, especially for those who actively use the Binance exchange.
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