The Binance USD is currently taking over crypto and other financial payment systems. Using this stable coin comes with a fulfilling experience. But how can you earn and use these tokens?
BUSD can be exchanged for the US dollar when transacting, and you won’t miss it on Binance conversions. Its stability is what makes it distinct from other stable coins.
Unlike other cryptocurrencies and stable coins, the Binance USD has a unique yet simple mechanism it follows; one BUSD will equate to one USD. The 1:1 ratio is constant across reserves that facilitate such transactions. Should this stable coin cost below $1, arbitrage traders will purchase it in larger quantities and exchange the tokens on exchange platforms. This idea aims at increasing the coin’s demand, thus raising its prices to the 1:1 peg.
What attracts traders to transact with BUSD?
There are some cryptocurrencies, but none beats the Binance USD. Why?
- Accessibility: You can access the Binance USD via Paxos or Binance exchange networks. Fiat trading platforms also have these exchange services. You can send BUSD tokens and exchange them for BUSD on Paxos.
- Flexibility: Crypto investors have the upper hand in trading and acquiring assets on the same blockchain. This provision is not available on other trading platforms.
- Speed: BUSD exchange is almost instant; you don’t have to spend more time trading.
- Reasonable fee: You can trade with stable coins globally; the transaction fee is nominal. For all BUSD trading pairs on Binance, you will pay a small fee.
How to use BUSD
Do you have BUSD assets and looking for a way to use them? Here is what you can do:
- Buy and sell: Paxos allows exchanges across its platform; you can trade 1 BUSD for 1 USD.
- Trade: since investors can exchange this coin for other assets, you can use it in the blockchain and accumulate profits. You can also convert LTC to BTC on such exchange platforms.
- Transact: You can make payments on services that accept this coin.
- Take loans: Some financial lending institutions like Margin Trading and Binance accept BUSD assets as collateral when taking loans.
- Hold: The more you invest and hold in cryptocurrency blockchains, the more profits you accrue. You can maximize profits by holding this coin as a stable dollar.
How to earn using BUSD tokens
BUSD launched a reward program for its investors, making its investments rewarding. This monthly program is only accessible to traders who trade on the blockchain services, mainly Ethereum, Binance Smart chain, and DeFi platforms. This is an opportunity to earn while holding your crypto coins for an extended period -you earn more by holding instead of converting your tokens to USD. How do you earn?
- Lock your tokens without the need to convert them into fiat. The Binance USD has a provision for investors to transfer their assets without switching to an exchange network.
- Hold your tokens in a BUSD account. Though Binance doesn’t have a reward program, holding it for some time automatically results in extra earnings. If this option pleases you, note that you will invest in the Binance Flexible Savings account. Saving here accrues to a bonus.
- You can convert your assets into fiat to avoid grappling with volatility.
BUSD has gradually saturated among blockchain trading and investment ecosystems. You could attribute its growth to the stability that comes along when using it. Besides, it is regulated, scalable, monthly audited, and collateralized. These benefits make using BUSD a better experience.