For several years now, cryptocurrencies have revolutionized the financial landscape by introducing a decentralized (without intermediaries such as banks) and digital means of exchanging value. As a reminder, a cryptocurrency is a form of digital currency based on blockchain technology, offering unique features such as security, transparency and traceability.
In 2009, Bitcoin truly served as a springboard for the cryptocurrencies that followed, as thousands more were developed, each with its own features and objectives. The main feature of cryptocurrencies is their decentralization.
Unlike government-issued fiat currencies, cryptocurrencies are not controlled by a central authority. That’s why they operate on a distributed network of participants who validate transactions and maintain the system’s security. Cryptocurrencies offer advantages such as lower transaction fees, faster transactions and also the ability to carry out cross-border transactions without the traditional hurdles.
What’s more, some cryptocurrencies enable the execution of smart contracts, paving the way for decentralized applications and innovative financial protocols, which we’ll look at in more detail in this article.
It’s important to remember that Paxos, the issuer of the BUSD, has stopped issuing new Binance USD (BUSD) tokens for regulatory reasons.
The Binance USD (BUSD) is a stablecoin. There are many others, such as USDC, USDT and TUSD. In the case of BUSD, it is backed by the US dollar. As its name suggests, it was launched by Binance, one of the world’s largest crypto-currency exchange platforms. As a reminder, a stablecoin is a form of cryptocurrency designed to maintain a stable value by being backed by an asset or fiat currency. In the case of BUSD, this is indeed the US dollar.
The Binance USD crypto can be used to carry out transactions, exchanges and payments on the Binance platform, as well as to participate in decentralized finance (DeFi) activities on the Binance Smart Chain (BSC). Before giving more details, let’s discover the history of this stable coin.
Binance
Binance
It was in September 2019 that Changpeng Zhao (Binance USD founder) launched this crypto by Binance in partnership with blockchain-focused financial services company Paxos. This popular cryptocurrency exchange platform decided to create the BUSD to be backed by the US dollar, in other words its value is designed to closely mirror that of the dollar.
BUSD is issued using a so-called collateralization approach, where each BUSD token is backed by an equivalent US dollar reserve held in verified bank accounts. This ensures transparency of reserves, guaranteeing stability and user confidence.
The BUSD was integrated into the Binance ecosystem, enabling users to deposit, withdraw and trade this stable coin on the exchange platform. The aim was that it could be used to facilitate rapid transactions between the various cryptocurrencies listed on Binance.
Since the launch of the BUSD, its adoption has grown steadily in the cryptocurrency ecosystem. It is used in daily transactions, exchanges, payments, money transfers and other use cases. This therefore gives users a stable alternative to the US dollar for their transactions on Binance.
Finally, in February 2020, the Binance platform launched the Binance Smart Chain (BSC), which is nothing other than a blockchain parallel to Binance Chain. The BUSD has been extended to the BSC, enabling users to interact with this stablecoin on this blockchain and to access DeFi (decentralized finance) applications and protocols running on the BSC.
As we have seen, the Binance USD was designed to provide value stability and a digital alternative to the US dollar on the Binance exchange platform. There are several reasons why the BUSD was introduced.
The Binance USD blockchain now operates on the BNB Chain, which is the merger of the Binance Chain and the Binance Smart Chain (BSC). As we said earlier, the stable coin BUSD is issued using a collateralization approach. This means that for every BUSD put into circulation, there is an equivalent US dollar reserve held in verified bank accounts.
What about Binance USD staking? As we have seen, users can buy or exchange BUSD tokens on the Binance platform. They can do this by depositing US dollars or other accepted cryptocurrencies on this platform, then converting them into BUSD at a fixed rate.
Once users have BUSD virtual tokens, they can use them to carry out transactions on the Binance platform. This can include the purchase of other cryptocurrencies, payments and money transfers between Binance users.
It can be used to interact with DeFi applications and protocols running on the BNB Chain, such as liquidity supplies, loans and yield farming.
Finally, Binance carries out regular audits to verify the US dollar reserves corresponding to BUSD in circulation. All these audits are carried out by independent third parties to guarantee the integrity of the system and parity with the US dollar.
Good to know: If you’d like to find out more about the different cryptocurrency rates, take a look at our crypto rates page, which will provide you with additional information on the subject.
By now, you’re beginning to understand more about Binance USD, how this stablecoin works and how it’s used. Now let’s take a look at where it’s best to buy BUSD tokens, and which are the 3 best platforms for acquiring them.
Since the BUSD is a Binance creation, you can buy your tokens directly from the Binance exchange platform. Simply create an account on this platform to deposit funds and exchange them for BUSD.
Binance is one of the most popular platforms for buying cryptocurrency. Both fast and efficient, the Binance platform was founded in 2017. It’s important to point out that Binance charges fees for transactions, which can vary depending on the payment method used and the transaction amount. Nevertheless, it remains one of the most recommendable platforms on the market today.
Binance
Binance
KuCoin is a Hong Kong-based cryptocurrency exchange founded 6 years ago. It has rapidly become one of the most popular and reliable exchange platforms. KuCoin offers a wide selection of cryptocurrencies and stablecoins, including the BUSD. This offers users the opportunity to buy, sell and trade a variety of digital tokens.
KuCoin
KuCoin
The Coinbase platform is also very popular for cryptocurrencies. Its ease of use allows you to buy BUSD with your credit card or by bank transfer. But first, you need to create an account by providing your personal details, including ID and phone number.
Coinbase also offers a mobile app that lets you buy, sell and store this digital currency. The platform also offers security features such as two-step verification and keeping funds in offline wallets to keep your funds safe. Highly recommended!
Coinbase
Coinbase
Although all three platforms are interesting, you need to choose one to start buying BUSD. That’s why you could start with the most popular platform, Binance. Intuitive and pleasant to use, this platform will enable you to make the most of it.
Whether you’re an amateur or at an advanced level, Binance is the simplest platform for buying Binance USD today.
Now: 40 Fear
Now: 40 Fear
Yesterday: 36 Fear
Last Week: 42 Fear
What about Binance USD future? Will Binance USD go up? As you’ve understood, Binance USD is not volatile like other cryptocurrencies. That’s why, like any currency in which you’d like to invest your money, you need to understand that the gain is not guaranteed, especially for a stable coin.
Binance USD forecast and chart
What’s Binance USD prediction? The current value of Binance USD token stands, today, at $1.
Will Binance USD recover? Now that BUSD is no longer a secret to you, you can more easily project yourself onto this stable coin, and follow its evolution. From now on, you’ll be better able to understand terms such as the Binance USD price in USD and the BUSD stock price.
We advise you to continue reading up on cryptocurrency in general. In fact, don’t hesitate to consult our article on how to trade cryptocurrency, which will give you a better idea of what you can do.
