Since the rise in popularity of Bitcoin, investors and blockchain evangelists have been sticking to ambiguous opinions about the safety of investments in cryptocurrencies. On one hand, sudden upsurges in the market have caused many to multiply their savings. On the other hand, some lost so much when the markets didn’t favor them. With tech, this resolution means upgrades, updates, or a complete base-level overhaul. For cryptocurrencies, this resolution came in the form of stablecoins. Today, there are over 200 stablecoins across the globe with many more to come, and here we’ll be discussing one of the more reputed ones – the Binance USD, as well as making a BUSD vs USDT comparison.
What is Binance USD?
Binance USD, or BUSD is a fiat-backed coin with a market capitalization of over $12 bn as of July 2021. This stablecoin is pegged with the US Dollar at a 1:1 ratio. In a first time for stablecoins, it was granted approval by the New York State Department of Financial Services (NYSDFS) for its transparency of financial transactions.
BUSD is the result of a successful partnership between Binance and Paxos and was launched for trade in September 2019. It’s an ERC-20 token that sits on the Ethereum blockchain, and has, since its launch, turned heads for all the partnerships it has made with reputable companies.
Today, users can trade the BUSD crypto with over 50 trading pairs, and the intended pegging of USD: BUSD at 1:1 has been consistent. The stablecoin has a reputable market standing because it complies with NYSDFS regulations – a third-party accounting firm conducts BUSD audits every month and displays them on the NYSDFS website.
Advantages of BUSD
1. Go peer-to-peer with Binance USD
Users can trade directly with each other with no transaction fees levied. Users only have to pay the spread between the buying and selling prices, although the minimum trade amount is $10000 worth of cryptocurrencies.
2. Spoilt for Choices
You can choose between three types of accounts – basic, advanced, or OTC. The basic account is recommended for beginners who don’t wish to get too technical or want to keep the volume to a small amount. It has basic details such as Binance USD price and fees data.
Both categories allow for the purchase of as low as $10. The advanced account offers many options to advanced users, like charts, price fluctuations, spot price, while the OTC (Over-The-Counter) account lets users trade on its peer-to-peer platform.
3. Insured Backing
Binance USD is insured for an amount of $250,000 for each user by the FDIC.
4. Wallet Flexibility
You can choose the free wallet provided by them – Trust Wallet, or link your own.
5. Feature-Rich Mobile Applications
The applications offer almost every feature of the website, like live price tracking, setting up recurring purchases or exchanges, and more.
Disadvantages of BUSD
1. Lack of Geographic Reach
Binance USD is still not available in about five US states.
2. Poor Customer Support
Their customer support is only through emails, and the turnaround time could be anywhere from a day to a week.
How to exchange BUSD on Swapzone?
Exchanging BUSD on Swapzone is quite easy – just go to your browser, type Swapzone on the search bar, and click on the first link that opens up. Once here, follow these simple steps:
- On the left side of the screen, you’ll see the “Select a Pair” heading. Choose the cryptocurrency you wish to exchange BUSD for, say, BTC, from the dropdon of “Send”.
- Pick BUSD and specify the quantity of purchase under the option “Get Up to”.
- The filter is now active and you’ll see the offers listed on the right side of the screen. Browse through all offers and decide which one works best for you.
- Click on the “Exchange” button to open up a prompt. Now, go to your cryptocurrency wallet and choose the receive option there. specify the wallet address and click on “Proceed to Exchange” to process your payment.
- An address is generated here. Send your BTC to this wallet. Once done, wait a while for confirmation on the Swapzone screen. Once confirmed, you’ll see “exchange in progress”. Once done, you’ll be able to see the amount expected vs the amount received based on floating rates if you did not pick fixed rates.
An optional addition to 4: You can also paste your wallet address in the “address to refund BTC”. In case of errors or transaction failures, this is the wallet where your BTC will be refunded. The default wallet address is set to the one you sent your BTC from.
Tip: Look out for tags like “Best Rate” or “Fixed Rate” on your offers – these come in handy specifically for beginners.
BUSD vs. USDT
While they both have their pros and cons, comparisons BUSD vs USDT always reveal the same thing – due to its insured state, robust security, transparency of finances, and regulatory approvals, BUSD beats USDT as far as security goes.
However, USDT offers a huge array of cryptocurrencies and trading pairs, much more than BUSD, where it gets the crown. If you’re confused between the two, the answer is rather simple – if what you want is available with BUSD, then security should be your priority. But if that’s not enough today, or you have plans to expand your portfolio in the future, you’ve got to pick USDT. Always do research and after that decide which side you choose in this BUSD vs USDT stablecoin battle.
BUSD crypto is an emerging market leader and has been the closest USDT competitor. With its FDIC backing and feature-rich along with the repute of the giant exchange that co-created it –Binance, BUSD is sure ruffling feathers at the USDT offices, and this competition may bring out the best in both these tokens in the future.