What is Binance USD and how to swap BUSD - Exchange Binance USD at the best rates
Binance USD

Binance USD

 BUSD

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.

Binance USD Exchange Rate

BUSD by TradingView

What is Binance USD?

BUSD or Binance USD is a fiat-backed stablecoin that is pegged to the US dollar. It was created by the cryptocurrency exchange, Binance, and blockchain financial institution, Paxos.

BUSD allows users to own a digital asset that is not affected by the high volatility faced by other cryptocurrencies. The stablecoin creates a way for users to have real-world value in a digital space. It is pegged to the US Dollar at a ratio of 1:1. This means that for every BUSD issued there is one US Dollar to back it up. This dollar is kept in a reserve that is managed by Paxos. This means that the total circulating supply of BUSD is backed by an equal amount of US Dollars. Because of this, BUSD holders can swap the stablecoin for dollars at any time. The main goal of BUSD is to make transactions within the decentralized finance (DeFi) ecosystem more efficient.

How does BUSD work?

BUSD works similarly to how other stablecoins work. Each BUSD token in circulation is backed by a single US dollar which means that BUSD can exchange their BUSD for dollars whenever they want. When you exchange your BUSD, you receive an equal amount of dollars in its place. The BUSD you exchange is burnt to maintain the 1:1 ratio of the BUSD in circulation and the dollars in the reserve.

If the price of BUSD ever falls below $1 per BUSD, arbitrage traders will buy large amounts of BUSD to make a profit. Then the arbitrage traders can send their BUSD to Paxos in exchange for fiat currency. After this, the token price will return to $1 as a result of increased demand for BUSD.

How is BUSD regulated?

BUSD is a regulated stablecoin. It was actually the first stablecoin to be regulated by the New York State Department of Financial Services (NYSDFS). Because of the regulatory approval on the stablecoin, it has to comply with certain rules as stipulated by the NYSDFS. The rule is that the BUSD must be fully collateralized. This means that there must always be an equal amount of US dollars to back the circulating supply of BUSD.

Another rule that must be complied with is that Paxos must carefully manage the creation of the BUSD token. The rule also requires Paxos to cautiously oversee the burning of the token as well.

The regulatory approval from the NYSDFS also permits Paxos to freeze any account that is suspected of illegal activities. Paxos can also seize the funds in the account.

The regulations stipulated by the NYSDFS are adhered to using a new function that was built into the smart contracts of BUSD. It is important to note that these regulations only apply to the Paxos-issued BUSD that runs on the Ethereum blockchain. The Binance-issued BUSD that runs on the BNB Chain is not regulated by the NYDFS.

Why use Binance USD

Binance USD offers several use cases that attract both investors and traders. For starters, it helps to avoid the price fluctuations that constantly affect the crypto markets. The high volatility of the crypto market has discouraged many investors and traders over the years. Binance USD offers a way for you to hold relatively stable assets within the crypto space. Another benefit that attracts users to Binance USD is the opportunity to make money through arbitrage trading. And finally, Binance USD allows investors and traders to secure their profits without converting their crypto assets to fiat currency.

How is BUSD different from other stablecoins?

BUSD is a fiat-backed stablecoin. However, there are other stablecoins that are backed by crypto assets. BUSD stands out when compared to other fiat-backed stablecoins because Paxos publishes regular audits to show that the amount of US dollars in the reserve is equal to the circulating supply of BUSD.

This makes BUSD more trustworthy because there are some fiat-backed stablecoins whose reserves have never been audited. This leads users to wonder if the stablecoins have any money in their reserves at all. BUSD allows users to own real-world digital assets without worrying about the reserves. The regular audits give them peace of mind because they know that their BUSD is securely backed.

How to swap Binance USD(BUSD)

Binance USD can be bought, sold, or swapped on a crypto exchange. Several crypto exchanges list the BUSD token including Swapzone. You can store your BUSD in hardware wallets or exchange wallets. And you can seamlessly convert your BUSD to fiat currency whenever you want. On Swapzone, ETH to BUSD swap would go like this:

  • Visit Swapzone.io.
  • Select the ETH to BUSD exchange pair.
  • Enter the amount of ETH to be exchanged.
  • Compare the exchange rates and select the best.
  • Click the Exchange button to proceed.
  • Enter wallet address to receive USD.
  • Send ETH to the generated ETH address.
  • Processing will take some moments and then the exchange will be completed.
  • Kindly rate and leave a review for Swapzone after your transaction has been completed.

BUSD Ecosystem

Paxos-issued BUSD runs on the Ethereum blockchain. Binance also issues a BUSD token that runs on the BNB Chain. Binance issues BUSD (BEP-20) by storing BUSD tokens in an Ethereum address. Then it mints pegged BUSD tokens which represent the original tokens stored in the Ethereum address. BUSD holders on the Ethereum and Binance blockchains can seamlessly swap their tokens between the two blockchains.

Popular pairs to convert Binance USD

Frequently asked questions

What is BUSD?

arrow

Binance USD or BUSD is a fiat-backed coin with a market capitalization of over $17 Billion as of April 2022. This stable coin is pegged with the US Dollar at a 1:1 ratio. In a much welcomed first-time occurrence for stablecoins, BUSD was recently granted approval by the New York State Department of Financial Services (NYSDFS) for their transparency of financial transactions.

BUSD is the result of a successful partnership between Binance and Paxos and the coin itself was launched for trade in September 2019. BUSD functions as both a BSC and 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. – These are excerpts from an earlier written article and you can read more about BUSD here.

Are you interested in buying or investing in stable coins like the Binance USD? Head over to our user-friendly website to buy, sell, or swap BUSD with any cryptocurrency of your choice right now.

How to Buy BUSD?

arrow

BUSD is the third-largest stable coin by market cap, according to CoinMarketCap rankings (over $17 Billion) and a lot of crypto traders trust it because of the liquidity provided by Binance. Are you interested in buying or investing in stable coins like the Binance USD? Head over to our user-friendly website to buy, sell, or swap BUSD with any cryptocurrency of your choice right now.

With Swapzone, you can buy Binance USD really easily with our rich asset selection and offers from 15+ exchange providers. For example, buy BUSD with ETH at the best rate on the market in just a few simple steps:

  1. Select the Ethereum to Binance USD swap pair.
  2. Enter the total amount of ETH you are going to exchange.
  3. Choose the best ETH to BUSD swap offer.
  4. Click on the Exchange button.
  5. Enter your wallet address to receive Binance USD to your wallet.
  6. Send your ETH deposit to the generated address.
  7. Wait for your ETH-BUSD swap to be done.
  8. Receive your BUSD to your wallet!

Is BUSD a Stablecoin?

arrow

Yes, BUSD is a stable coin launched by Binance, the largest cryptocurrency exchange by volume. Binance USD (or BUSD) is a fiat-backed coin with a market capitalization of over $12 bn as of July 2021. This stable coin is pegged with the US Dollar at a 1:1 ratio. Currently, BUSD is the third-largest stable coin by market cap, behind Tether(USDT) and USDC.

BUSD was launched in September 2019, on two different blockchain networks namely the Binance Smart Chain and Ethereum’s ERC-20 blockchain networks. Notably, these are essentially different networks and you should be careful when sending funds across the two networks as the wrong network address could lead to an irreversible loss of funds.

If you are interested in buying or investing in stable coins like the Binance USD? Head over to Swapzone to buy, sell, or swap BUSD with any cryptocurrency of your choice right now at the best available market rate globally.

How to Add BUSD to Metamask?

arrow

BUSD is the third-largest stable coin by market cap. The stable coin runs on the Binance Smart Chain blockchain (or any of the other chains including ERC-20, Velas, and Harmony ONE Network) and can be easily added to a MetaMask wallet. However, to add BUSD to MetaMask, you need to make sure you are on the Binance Smart Chain network or any of the others (by clicking on the network dropdown box) before you copy your contact address and import it as a custom token. After this is done, follow these steps below to complete the process:

  1. Copy the unique BUSD beacon chain from CoinMarketCap (under contracts) or Click on the MetaMask logo
  2. Open your MetaMask wallet
  3. Select the “import tokens” button
  4. Paste your BUSD address
  5. You can now send and receive BUSD tokens

Top up your BUSD balance on your MetaMask wallet on Swapzone. Also, you can buy, sell or swap BUSD with any other cryptocurrency of your choice at Swapzone. Head over to our exchange page to get started. You can top up your BUSD balance on Metamask here.

What Blockchain is BUSD On?

arrow

The BUSD coin was launched on two notable blockchains in 2019. BUSD runs as both a Binance Smart Chain token and an ERC-20 token that sits on the Ethereum blockchain, and has, since its launch, attracted admirers for its trustworthy reserves and all the partnerships it has made with reputable companies. You can read more about BUSD here.

Are you interested in buying or investing in stable coins like the Binance USD? Head over to our user-friendly website to buy, sell, or swap BUSD with any cryptocurrency of your choice right now.

  1. Select, for example, the Ethereum to Binance USD swap pair.
  2. Enter the total amount of ETH you are going to exchange.
  3. Choose the best ETH to BUSD swap offer.
  4. Click on the Exchange button.
  5. Enter your wallet address to receive Binance USD to your wallet.
  6. Send your ETH deposit to the generated address.
  7. Wait for your ETH-BUSD swap to be done.
  8. Receive your BUSD to your wallet!

What is BUSD in Crypto?

arrow

Binance USD or BUSD is a fiat-backed stable coin with a market capitalization of over $17 bn as of April 2022. This stable coin is fully backed up by the US Dollar at an equal ratio.

BUSD is both an ERC-20 token and a native Binance Smart Chain token, and has, since its launch, been a resounding success with no controversy linked to its reserve position to date. You can read more about BUSD here.

With BUSD, crypto investors do not need to overwork themselves over the crypto market volatility, as they can easily swap their volatile assets for stable BUSD anytime. If you are interested in buying or swapping your volatile crypto for stable coins like the Binance USD, then head over to our user-friendly website to buy, sell, or swap BUSD with any cryptocurrency of your choice right now.

Where to Buy BUSD?

arrow

You can buy the BUSD from Swapzone or any of the other numerous cryptocurrency exchanges on the market. You will need to open an account to trade, swap, and keep BUSD on most centralized exchanges. However, on Swapzone, you do not need to open an account nor reveal your private details before you can buy or swap crypto and BUSD.

BUSD is fully backed by the management of Binance and its future profitability and utility depend on its activities, but you can buy and sell BUSD on other cryptocurrency platforms like Kraken, Coinbase, Swapzone, and more. If you buy BUSD on the Swapzone exchange platform there is no lower limit or upper limit to the amount of BUSD you can buy.

Become a BUSD owner who holds the promising and fast-rising cryptocurrency that is being increasingly adopted by crypto traders averse to market volatility, by heading over to Swapzone to buy BUSD or swap for other crypto coins at low rates.

How to Buy BUSD on Metamask?

arrow

BUSD is the third-largest stable coin by market cap. The stable coin runs on the Binance Smart Chain blockchain and the Ethereum ERC-20 protocol, so it can be easily added to a MetaMask wallet. However, to add BUSD to MetaMask, you need to make sure you are on the Binance Smart Chain network or any of the others (by clicking on the network dropdown box) before you copy your contact address and import it as a custom token. After this is done, follow these steps below to complete the process:

  1. Copy the unique BUSD beacon chain from CoinMarketCap(under contracts) or Click on the MetaMask logo
  2. Open your MetaMask wallet
  3. Select the “import tokens” button
  4. Paste your BUSD address
  5. You can now send and receive BUSD tokens

Now that you have successfully added BUSD to your MetaMask wallet, you can top up your BUSD balance on Metamask here at Swapzone. Head over to our exchange page to get started.

Recent articles

Browse all

Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.