Exchange Binance USD (BUSD)

BUSD (Binance USD) is a stablecoin on Binance Smart Chain whose price is pegged to the USD. Its goal is to provide a more stable cryptocurrency alternative for traders and investors to avoid the volatility of the crypto market, especially those who prefer to use the tokens issued on the BSC. Whenever the price of USD changes, it also affects the value of the BUSD token. 

The launch of the BUSD token is supposed to increase the adoption of cryptocurrencies by making it safer to enter the market for those who hesitated due to the usual cryptocurrency volatility. It also advertises the Binance exchange as the stablecoin is used in various pairs on the platform. Another advantage it offers its users is a more seamless trading experience. 

Binance announced that it will launch a stablecoin in September 2019 

The advantage of the BUSD token is that it is regulated by the New York State Department of Financial Services, and offers the highest level of consumer protection. It ensures that the cryptocurrency is fully backed by cash reserves held in custody, so the customers’ funds are always available for 1:1 redemption. It means that even if the custodial trust will become insolvent the funds will be returned to users.

The BUSD token was founded by Binance and Paxos — a company that uses blockchain technology to offer a Stablecoin as a Service product to external companies. Paxos is known for creating a gold-backed stablecoin called PAX Gold (PAXG). Binance manages the coin and is responsible for its listing on the exchange and customer support. It can also mint the tokens through the smart contract. For this Paxos needs to deposit dollars to the reserve. 

BUSD offers three key elements for transactions: accessibility, speed, and flexibility. The asset can be easily accessed through Paxos or Binance. The tokens can be purchased through exchanges and gateway services. Users can also send the needed amount to Paxos in dollars and the company will mint the tokens for them. 

Paxos grants the stability and reliance of the token and regularly publishes detailed audits, showing how the reserves are matching the supply of BUSD. Those audits are completed by the Withun accounting company. 

Whenever the price of BUSD goes below $1 arbitrage traders purchase BUSD in large quantities. After that, the tokens can be converted to fiat via the Paxos platform. The increase in the BUSD price normally pushed the peg back to 1:1. 

BUSD is available across multiple networks, at more than 30 exchanges, and has multiple use cases. One of the popular ways to utilize the BUSD token is staking which can get traders a high interest of up to 10% ARP. The tokens can be staked through the launchpool. 

BUSD was created as an ERC-20 token but it's also compatible with the BEP-2 standard and can be used on both networks. If the users want to convert the BUSD token from one network to another, they just need to send the assets to the designated address on the Binance Chain. The token does not have a max supply. 

Through 2020 the BUSD market capitalization grew by 1360% with the market cap of the coin reaching $1 billion by the beginning of 2021. By the end of 2021, the market cap overreached $14 billion. 

Average Fees on BUSD

The fees for transacting, depositing, and withdrawing the BUSD tokens will depend on whether users do it on Ethereum, Binance, or another network, and also depending on the trading platform they use. 

Users can also enjoy zero maker and taker fees for the ETH/BUSD spot trading pair. Binance also offers zero maker fees for more BUSD trading pairs. 

BUSD Wallets 

BUSD is listed on most of the common exchanges and is also supported by the majority of the crypto wallets, including Binance, Coinbase, MetaMask, Trust Wallet, Guarda wallet, Ledger, Token Poket, iToken Wallet, Coinomi Wallet, Math Wallet, Hyper Pay, SafePal, BitPay, BitKeep, Atomic Wallet, Brave Wallet, etc.