It is becoming more popular to use cryptocurrencies. BNB, Ethereum and Bitcoin are just a few of the crypto assets that have made their way into the market.
One of the most widely used crypto currencies today is stablecoins like USD Coin (USDC), Tether USDT (USDT) or Binance USD (BUSD).
This is a type of cryptocurrency with fixed prices tied to fiat currency, making it one of today’s most beloved types.
Let’s take a deep dive and learn how to buy Binance USD (BUSD) in a few easy steps with this quick guide to the Binance USD token.
Step 1: Choose a Crypto Exchange
On several cryptocurrency exchanges, you can purchase BUSD coins. Check out CoinStats’ market page to see which exchanges support the BUSD currency. Compare the exchanges’ security, user experience, fee structure, supported coins, etc., to choose the one that has the characteristics you need, such as affordable transaction fees, an intuitive platform, round-the-clock customer service, etc. Consider whether the crypto exchange is regulated and permits you to purchase BUSD using the preferred payment method.
Step 2: Create an account
After you’ve chosen a cryptocurrency exchange that fulfills all your criteria, the following step is to register with the exchange using a valid email or mobile number. You will receive a link to confirm your email address. Once the account is activated, you must create an elaborate password, and you’re good to go.
Some exchanges require KYC or AML verification. In order to be validated, you need to give personal information like:
- Full Name
- Address at home
- Date of Birth
- Document of identification
You might need to take a photo or submit video to complete the verification process.
Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.
Step 3: Deposit the funds
You will need to deposit funds in your account. Many cryptocurrency exchanges allow you to deposit fiat currency like USD, EUR and so on. You can choose your deposit method (e-wallets or wire transfer), and then select the currency that you want to deposit. Tap on “Deposit Funds,” enter the amount you want to deposit, and click “Deposit.”
Some deposit methods can be done very quickly, but others require authorities confirmation. You should compare fees between deposit methods as different ones may have higher fees.
Although linking your cryptocurrency account to your debit card is a great way to make instant and recurring purchases, there are additional fees.
It’s usually free to make a bank transfer from your local bank accounts, but you should still double-check with your exchange.
You can trade BUSD for other currencies like Ethereum and stablecoins. The trading pairs differ between exchanges so you will need to search for BUSD in the spot market.
Step 4: Purchase BUSD
To instantly place an order for BUSD at current market prices, follow the steps:
- Click the search bar, enter BUSD, and select “Buy BUSD” or the equivalent.
- Select the payment option, choose the currency that you want to use and enter the BUSD amount or fiat money to be spent. Most exchanges will automatically convert the amount to show you how many BUSD tokens you’ll get.
- Double-check the transaction details and click “Confirm.”
- After the transaction is completed, your balance will display the BUSD tokens.
A limit order can be placed to indicate that you wish to purchase BUSD below or at a certain price. Your broker will ask you the number of coins you wish to acquire and the maximum price you’re ready to pay for each once you’ve placed an order. Your broker must fulfill your order at the requested price. Your broker could cancel or open your order if you request a higher price than your limit.
If you’re planning to keep your newly purchased coins for an extended period, we highly recommend securely storing them in a hardware wallet.
For spot market trading, you can go to Trade and look for BUSD pairs (BUSD/USDT or USD/USD). Click on the desired trading pair to view the price chart. Click “Buy BUSD,” select the “Market,” enter your amount or choose what portion of your deposit you’d like to spend by clicking on the percentage buttons. Confirm and click “Buy BUSD.”
Congratulation on adding USD tokens to crypto portfolio.
Track BUSD Tokens
If you have multiple assets, managing your portfolio can become difficult because the market is unpredictable. A portfolio tracker can help you track your Bitcoin tokens, as well as all of your investments. It is easy to use one platform for all things crypto. CoinStats has one of the most popular crypto portfolio trackers on the market. More information can be found here.
On CoinStats, you can monitor BUSD’s profit, loss and liquidity across multiple exchanges.
CoinStats is compatible with over 250 cryptocurrency exchanges as well as over 7000 cryptocurrencies. You can use it to chart, analyze data, search advanced features and keep up with the latest news. You can connect unlimited portfolios (wallets or exchanges) here.
- Binance
- MetaMask
- Trust your wallet
- Coinbase
- Kraken
- Kucoin
- Bitstamp and other 500-plus products
Go to the CoinStats portfolio tracker page.
- Click Connect Wallet and Add Portfolio.
- Select the wallet that you wish to link to, e.g. Ethereum Wallet.
- Click on Submit to enter the wallet address.
What is Binance USD (BUSD), and How Does It Work?
Binance in partnership with Paxos issued the Binance USD stabilitycoin, which is backed by 1 USD. The NYDFS (New York State Department of Financial Services) has authorized it and approved its regulation.
US dollars are pegged to the BUSD token 1:1. Each BUSD token that is minted results in an additional 1 US Dollar to Paxos Reserve accounts, to support the BUSD issues.
So, users who purchase 1,000 USD will receive 1000 USD and 1,000 will be added to their Paxos reserves. Tokens that are sold for 1000 dollars will be burned.
BUSD is a digital fiat currency that combines the stability of the US dollar and blockchain technology. BUSD is a digital fiat money that uses ERC-20 and supports BEP-2. The blockchain allows you to send dollars immediately and without any fees.
Why do you need BUSD
BUSD can be used in multiple ways by crypto traders and investors.
- Reduce price fluctuations
Stable assets are essential when the crypto market is volatile. It’s hard not to notice the value of stable assets. BUSD allows you to convert your holdings into fiat currency in volatile periods.
- You don’t need to convert to Fiat to lock in gains
BUSD is a liquid way for investors to withdraw from an investment or secure the profits. You don’t have to wait for an exchange to transfer your fiat funds into your bank account.
- Transferrable
Three blockchains are available for the BUSD token: Binance Chains and Binance Smart Chains. Ethereum is not supported. Tokens may be traded between chains at any given time.
How does BUSD work?
BUSD’s peg mechanism is simpler than other stablecoins. Every BUSD can be pegged to 1 USD using the reserve. You can burn your BUSD tokens by sending them to Paxos, and in return, you’ll receive fiat currency. In this way, supply will be constant and reserves won’t change.
When the Binance USD value falls below $1, arbitrageurs will buy large amounts of BUSD. Arbitrageurs will convert large quantities of Binance USD purchased into fiat currency using Paxos after they have made the purchase. BUSD is in high demand and the Binance USD price (BUSD) rises to $1. The 1:1 peg has been restored.
History of the BUSD
Binance USD was created in partnership with Paxos (New York State Department of Financial Services) and is regulated and monitored by the NYDFS. Paxos, the USD custodian for BUSD, holds the required reserves in US Dollars to cover every BUSD that is issued. This ensures that each unit of BUSD equals one US dollar.
BUSD is able to rely on a 21.63 Billion Tokens supply. NYDFS recognized Binance USD token as a medium for exchange. Due to its regulated status and the audited reserves held in trusted financial institutions, it’s a reliable and stable investment. BUSD offers many utilities, including trading and lending. It can also be used as a payment method. Transfer your digital dollars (BUSD), anywhere you like, in minutes and at a low cost on the blockchain.
How can I buy BUSD in Binance
Binance has established itself as the world’s largest and most widely used crypto exchange in terms of trading volume. Binance’s simplicity of use and lower fees than other exchanges make it a favorite among investors and traders. Binance, the BUSD issuer, is the most popular centralized cryptocurrency exchange to purchase BUSD. It allows users to trade 600+ cryptocurrencies including BUSD. The platform also supports multiple payment methods like credit/debit, bank transfers and third-party transfers. Peer-to peer trade is possible. Binance.us can be accessed by US citizens.
To buy Binance USD, follow our steps-by-step instructions below.
Register for an account
If you want to buy USD on Binance, then register through your Google Account, valid email address, Apple Account, or valid mobile number. To verify your account, a link will be sent directly to your email address. Once the account is activated, you must create an elaborate password, and you’re good to go.
Binance doesn’t require new users to undergo KYC (know your customer) verification straight away by providing additional documents. However, KYC verification enables you to take full advantage of the platform’s services for lowers fees.
For verification, personal information must be provided such as:
- Full Name
- Address at home
- Date of Birth
- Identification document.
In some cases, it may be necessary to submit a picture or to undergo video verification in order to finish the process. Once your identity verification is complete, it’s recommended to activate two-factor authentication (2FA) for an extra layer of security.
You can deposit funds
To purchase USD tokens, you will need to next deposit funds to your Binance account. Binance accepts a variety of deposit options, including a bank transfer, wire transfer, credit/debit cards, third-party payments and bank deposits. You should carefully review the fees involved in buying cryptocurrency using any of these methods.
To buy USD with digital assets, you can link your crypto wallet.
You can choose your deposit method (e-wallets or wire transfer), and then select the currency that you want to deposit. Tap on “Deposit Funds,” enter the amount you want to deposit and click “Deposit.”
Some deposit methods take very little time, but others need confirmation from authorities. You should compare fees between deposit methods as different ones may charge more.
NOTICE: For fiat transactions, Binance users must complete KYC.
Purchase BUSD
Binance allows you to purchase BUSD in any fiat currency. You can search for BUSD by going to Markets.
- Choose a trading pair against which you would like to purchase BUSD.
- Simply enter the amount of BUSD tokens that you want to buy, and then click on Buy USD.
- Your order will be fulfilled instantly at the market price.
What is the best exchange to buy BUSD?
You must take into consideration the following things when choosing an alternative to Binance for buying BUSD:
Security
When choosing an exchange platform, security is undoubtedly the most important factor. Many malicious hacks have occurred on major exchanges over the course of their history. Ensure that your chosen platform has a reputation for excellent security so that your crypto stored on the exchange won’t be compromised.
Payment Methods
Many payment options are supported by the best cryptocurrency exchange platforms. Make sure that you can use your preferred payment method, including bank transfers and debit cards.
Notice: CoinStats can be integrated with many digital wallets and exchanges, allowing seamless swaps and purchases.
The Fee Structure
Most brokers charge transaction fees at a modest percentage. Ensure that you understand the platform’s fee structure and note any hidden fees to avoid paying more than you can afford.
Place to Buy Binance USD
Now, let’s take a look at different types of wallets to store BUSD coins. The amount of coins you own and the way you plan to use them would make it easier to pick the best wallet.
A Wallet is either software (Hot wallet), hardware (cold wallet) and can be divided into two types.
Hardware wallet
Because they provide offline storage and back up capabilities, a hardware or cold wallet is more reliable than a software wallet. For experienced BUSD coin holder with large token amounts, we recommend this option.
Ledger, also known as Ledger Nano X or S was founded in 2014. It is a leader manufacturer of hardware wallets. The BOLOS operating system is used to embed a secure chip in their crypto hardware wallets. The BOLOS operating system provides security through the use of a pin code as well as a 24-word back-up phrase. Additionally, the system supports all ERC20 tokens and more than 1,000 coins.
Ledger provides an app for crypto lending and staking called LedgerLive that you can download to your mobile or computer.
Software Wallet
Also known as a hot or software wallet, a software wallet can also be called a hot wallet. They are not as secure because they can connect to the internet 24/7 and save your keys online. Software wallets can be a great option for beginners who only have a handful of tokens. They are also free and easy to use.
Coinbase wallet, one of the most used and popular software wallets is available for free on Google Play as well as the App store.
Selling Binance USD
Follow these steps to cash out your BUSD.
- Register to your cryptocurrency account by going to the exchange.
- Click the trading button, and then tap “Sell.”
- To select the amount of BUSD that you wish to sell, click on the drop-down menu.
- Select the method you prefer to receive your fiat currency. Binance has a number of fiat channels. Users from different countries have the option to choose other channels.
- To complete the transaction, click “Submit.”
- Confirm the purchase by agreeing to the price and any associated costs.
BUSD Tokenomics
The total Binance USD token supply is more than 17 million tokens according to CoinStats data.
As of the writing of this article, 17.95 billion Binance USD tokens are in circulation with a market cap of approximately $17 billion.
BUSD tokens are currently priced at $1. Binance USD tokens have been traded for approximately $3 billion in the last 24 hours.
Do You Need to Buy Binance USD?
Binance USD token, which is ERC-20-compliant and based on Ethereum blockchain technology, can be used to buy Binance USD token. The BUSD can be exchanged at 1:1 for USD.
It is recognized by the New York State Department of Financial Services as an exchange medium and can be used worldwide as a method of payment on the cryptocurrency market.
InvestorsObserver’s research indicates that Binance USD tokens represent a low risk investment. Binance USD’s price has dropped by 0.03% over the last 24 hours, resulting in its current value of $1.00.
The decline in Binance USD price coincides with the token’s trading volume being below its average level and the rising market capitalization of the token. BUSD’s market capitalization is currently $17.95 Billion. Trades in the last 24 hours have reached $4 Billion.
Binance USD, a cryptocurrency that is low in volatility, makes a good addition to any portfolio.
To manage your crypto assets, you can use crypto portfolio monitors like CoinStats. This software can track each cryptocurrency’s performance and provide analytical tools that allow you to analyze the data.
Conclusion
BUSD is one the most highly-regulated stablecoins. A stablecoin refers to a cryptocurrency that is linked to an asset. USD is an excellent investment because it’s easy to access.
Paxos and Binance created the stablecoin and it complies to the NYDFS’s strict regulations. The coin’s reliability is high because it has been regulated. Reputable financial institutions have also audited its reserves.
If you use Binance Smart Chain or Binance Chain regularly, the BUSD stablecoin is a good choice.
Disclaimer:The contents of this article should only be used for informational purposes and not as financial advice.