What is Binance USD (BUSD)? Instructions on how to buy BUSD on Binance

• What is Binance USD (BUSD)?
• Who is the creator of BUSD?
• How does BUSD work?
• What is BUSD used for?
• Is Binance USD (BUSD) safe or not?
• Where to buy Binance USD (BUSD)?
• Instructions on how to buy BUSD on Binance
• Instructions on how to buy BUSD via Binance P2P channel
• Instructions on how to buy BUSD with USDT on Binance
• Frequently asked questions BUSD
• Should invest in BUSD or not?
• summary

What is Binance USD (BUSD)?

BUSD is a Stablecoin issued by Paxos and Binance in 2019. The value of BUSD is always guaranteed and maintains a fixed 1:1 ratio to the US dollar. To support this value, Paxos will hold an amount of US dollars equal to the total supply of BUSD in its fund. Paxos also publishes the results of a monthly audit of BUSD's reserves to ensure the security, safety and transparency of users' assets.

Who is the creator of BUSD?

BUSD was issued by Paxos and Binance on September 5, 2019. Paxos is a company dedicated to using blockchain technology to provide stablecoin related services. Paxos once issued PAX Gold (PAXG), a stablecoin backed by gold. The New York Department of Financial Services (NYDFS) will be responsible for the management of stablecoins issued by Paxos, including BUSD and PAXG. Along with ensuring the tokens are fully collateralized, Paxos must carefully control the creation and burning of BUSD. Paxos also reserves the right to freeze accounts, withdraw and destroy BUSD in case of necessity if it is illegal activities. BUSD is audited monthly by the accounting firm Withum as required by NYDFS.

How does BUSD work?

The mechanism to convert and keep the price of BUSD is relatively simple and similar to most stablecoins today. When investors want to own BUSD, they need to deposit the amount of USD corresponding to the amount of BUSD they want to convert to Paxos reserve fund. After that, Paxos will use the smart contract to generate BUSD and send it back to investors. The same is true if the investor wants to change back from BUSD to USD. This mechanism keeps the supply and reserves of BUSD always 1:1 and unchanged.

Paxos issues BUSD on the Ethereum blockchain . In addition, Binance also offers Binance-Peg BUSD (BEP-20) tokens on BNB Chain. Binance does this by storing BUSD in an Ethereum wallet address. They then mint an amount of BUSD corresponding to the amount of BUSD stored in the other Ethereum wallet on their BNB Chain platform. Users holding BUSD (ERC-20) and BUSD (BEP-20) can swap between these two tokens depending on their needs through withdrawals on Binance or Binance Bridge.

Binance-Peg BUSD is a separate product of Binance. It is not issued by Paxos and is not regulated by the New York Department of Financial Services.

What is BUSD used for?

Some common use cases of BUSD are:

• Minimizing risk, avoiding price fluctuations in the cryptocurrency market : With its stability like other stablecoins, BUSD helps investors to minimize losses and protect their accounts every day. when the market fluctuates.
• Enjoy attractive services and incentives from Binance : Investors using BUSD to trade on Binance will be completely free of transaction fees, lower interest rates when borrowing BUSD and increase interest rates for payment providers account.
• Join financial services for profit : In addition to Ethereum, BUSD is also available on the BNB Chain platform. Thanks to BNB Chain, investors can deposit BUSD into decentralized financial services and applications to earn more profits and cheaper costs than similar services and applications on the platform. Ethereum.

Is Binance USD (BUSD) safe or not?

As analyzed above, BUSD is always guaranteed and maintains a fixed rate of 1:1 with the US dollar. The process of creating or destroying this stablecoin is done and closely monitored by the company Paxos. Notably, Paxos always carries out all the required checks with the Withum accounting firm to ensure the most accurate information is provided to investors.

Also, as we can see, Binance USD received approval and approval by the New York Department of Financial Services (NYDFS). This is one of the main factors that create strong investor confidence in the value and reputation of Stablecoin BUSD. The CEO of Paxos himself commented that:

“Convincing the NYDFS to approve Binance USD is a very important step towards the long-term development of the global crypto market. We take pride in our service as it has been used and recommended by leading cryptocurrency exchange Binance to their customers. The Paxos brand stands for transparency, openness and investor protection.”

In addition, BUSD also supports investors to trade faster, more economically, and more conveniently when trading on Binance. At the same time, when holding BUSD, investors can earn more passive income sources with attractive APR rates of return.

Where to buy Binance USD (BUSD)?

Currently, Binance USD is supported on most cryptocurrency exchanges, so you can easily buy this Stablecoin. In which, Binance is the leading exchange for investors to buy BUSD. In addition, you can refer to some more exchanges such as KuCoin, Huobi Global, OKX, HitBTC ...

Or you can also buy BUSD with fiat currency or use the swap feature on exchanges.

Instructions on how to buy BUSD on Binance

To participate in trading on Binance, you must register an account at https://accounts.binance.com/en-IN/register .

You then need to verify your identity and secure your account at https://www.binance.com/en/my/security to use the full functionality of Binance.

Instructions on how to buy BUSD via Binance P2P channel

Step 1 : You log in to Binance at https://www.binance.com/ .

Step 2 : You select “Trading” on the menu bar and click “P2P” to access Binance P2P. 

Step 3 : Click “Buy” and select BUSD on the menu bar. Then filter for rates and payment methods. Finally select an ad and press “Buy BUSD”.

Step 4 : Enter the amount or amount of BUSD you want to buy and press “Buy BUSD”.

Step 5 : Check the payment method and the amount you just selected. Transfer money within the specified time then click “Transferred, next” and “Confirm” to complete.

Note : Remember to take a picture of the proof of deposit and send it to the seller through the chat box to speed up the transaction. You have 15 minutes to make the transfer. If you have already transferred the payment to the merchant, you must NOT press “Cancel” unless the seller has refunded the money back to your account. If you have not paid, please DO NOT press “Confirm” to confirm payment. If you encounter problems during the transaction, you can contact the seller using the chat window.

Step 6 : After the merchant received the money and unlocked the BUSD. The transaction is considered completed. You can tap “Go to exchange wallet” to transfer BUSD to your spot wallet.

Note : If you have paid but have not received your funds within 15 minutes after pressing pay, you can click “Complaint” and fill in the necessary description for Binance customer support to receive it. get immediate support.

Instructions on how to buy BUSD with USDT on Binance

Step 1 : You log in to Binance exchange at https://www.binance.com then deposit money into your account.

Step 2 : To start Spot trading the BUSD/USDT pair in the advanced interface on the Binance exchange, visit the link https://www.binance.com/en/trade/BUSD_USDT?layout=pro . 

The above interface includes:

1. Basic information about BUSD like highest price, lowest price, 24 hour trading volume
2. Candlestick charts and market depth
3. Buy and sell order book
4. Where to place buy and sell orders
5. List of assets in your wallet
6. List of recent trading orders
7. List of open orders, your transaction history.

Step 3 : You enter the price and quantity of BUSD you want to buy then click “Buy BUSD” to place a buy order.

Frequently asked questions BUSD

How to buy and exchange BUSD?

BUSD can be purchased, traded, redeemed directly on the Binance and Paxos platforms.

Is BUSD an ERC-20 token or just a BEP-20 token?

BUSD is an ERC-20 token with BEP-20 support. This means that even though BUSD is minted on the Ethereum platform, through Binance's service, users can still use them on the BNB Chain platform.

How does BUSD maintain safety and stability of value?

Paxos is the USD custodian and direct issuer of BUSD. You can buy and swap your BUSD to USD absolutely free, anytime at 1:1 ratio.

What is the difference between USDT and BUSD?

The basic difference between BUSD and USDT lies in the principle and how the two coins work. BUSD is regulated and approved by the NYDFS, and it also has reserves held by Paxos instead of its parent company, Binance.

On the other hand, USDT and Tether are not subject to the management and control of any organization or authority. Tether is also the holder and manager of the reserves of USDT. This is the main reason why USDT has suffered a lot of trouble, accusations of fraud with some regulators because of its lack of transparency and auditing.

Where can I see BUSD's monthly endorsement report?

Investors can view BUSD's certified monthly audit report at https://www.paxos.com/attestation .

Should invest in BUSD or not?

With Binance partnering with Paxos, a trusted name in the crypto market with stablecoin-related services, has demonstrated its ambition to build a truly secure and regulated stablecoin. for this exchange's crypto space. 

BUSD possesses the same stability, publicity and transparency as any other stablecoin. In particular, it also received approval from NYDFS, one of the strictest financial regulators in the world. Paxos also regularly publishes the results of its fund audits every month to ensure that the amount of US dollars in reserve is always 1:1 with the supply of BUSD.

As part of the Binance ecosystem, investors using BUSD to trade on Binance exchange will receive many attractive benefits such as reduced transaction fees, increased interest rates, etc. Binance NFT also uses BUSD as the main currency. when trading NFT on this platform. 

By partnering with over 36 trading and payment platforms and over 20 storage-enabled wallets, BUSD can be easily used by anyone, anywhere, to trade and pay.

summary

Above is the basic information about BUSD as well as instructions to buy BUSD on Binance exchange for new investors. The transparency and security of BUSD is ensured by regular audits as well as the strict management of NYDFS making it a safe, reliable choice for every investor in the market. crypto market. In addition, investors holding BUSD will enjoy many special benefits and incentives when joining the Binance ecosystem. BUSD can also be converted BUSD back and forth between BNB Chain and Ethereum platforms to maximize user experience. With many of the above advantages and outstanding features, BUSD deserves to be a stablecoin that every investor should own and use when participating in this market.

Watch to know more about: What is USDT ? Information about Tether (USDT)

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