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BUSD

Binance USD (BUSD) Price Index

$ 0.999613 Ƀ 0.00001485
  • MarketCap
    $ 84,499,552
  • Volume
    $ 16,109,625
  • Change
    -0.18%
binance-usdBUSD
$ 0.999613
$ 0.999613
0.18%
0,921716
BUSD
Binance USD (BUSD)
$ 0.999613
BUSD
Binance USD (BUSD)
author
author
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
By Marcel Deer
author
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
on May 01, 2023 | 3 min
Updated on Dec 11, 2023

Overview: What is Binance USD (BUSD) coin?

Binance USD (BUSD) coin is a stablecoin cryptocurrency created by prominent exchange Binance and Paxos Trust. BUSD is a stablecoin that is pegged to the US dollar, which means for every BUSD, there is a US dollar held in reserve by its creators.

 

Pegging cryptocurrencies to less volatile fiat assets like the dollar enables price stability, allowing the crypto coin to be used more reliably in payments and transfers.

What makes Binance USD unique?

BUSD competes with other stablecoins such as Tether (USDT) and USD Coin (USDC). Stablecoins allow fast transfer of digital assets but without the volatility of other cryptocurrencies like Bitcoin or Ethereum, the value of which can very quickly go up or down.

 

Binance USD  coin and its competitors are all designed to be exchanged at any point, each for one US dollar. Binance and Paxos launched BUSD in September 2019; BUSD uses Ethereum technology on the BNB Chain blockchain.

 

USD Coin (USDC) was also created by an exchange, Coinbase, collaborating with a technology company, whereas USDT was not created by a cryptocurrency exchange partnership.

 

How does Binance USD (BUSD) work?

The supply of BUSD matches exactly its equivalent backing in US dollars. For every BUSD in circulation, Binance and Paxos must keep one fiat dollar in reserve. To overcome common industry concerns about the transparency of stablecoin reserves, BUSD reserves are independently audited on a regular basis.

How Binance USD (BUSD) price is determined?

Binance USD price should always be equivalent to one US dollar. As a stablecoin, Binance value in USD should not change with supply and demand. Binance USD price today should be $1, and a Binance USD price prediction should always expect a $1 value. Binance USD price prediction 2030, for example, will be exactly the same as at any other time. Stablecoins aren’t created for investors to accumulate wealth; instead, they enable digital transactions.

 

If you look at a Binance USD price chart or the price chart for another stablecoin, you might see slight variations in Binance USD price because stablecoins can be somewhat subject to exchange liquidity and can occasionally become un-pegged from their fiat backing.

What Is BUSD Used For?

BUSD can be used by investors or traders on exchanges when they want to keep money digitally but know the exact value. It can then be exchanged for other more volatile cryptocurrencies as required. BUSD can also be used in DApps and DeFi projects to transfer value, make payments for loans, and to earn rewards.

Where do you buy BUSD?

As a popular stablecoin, BUSD can be bought, sold, and traded on most major cryptocurrency exchanges. As it’s created by Binance and Paxos, it’s frequently bought on the Binance cryptocurrency exchange.

 

FAQs

How does Binance USD gain value?

Binance USD is not designed to gain or lose value. As a stablecoin, BUSD should always be exchangeable 1:1 with the US dollar. Binance USD price should not change. Does Binance USD have a future?

BUSD is a popular USD-backed stablecoin that has been approved by the New York State Department of Financial Services (NYDFS). Binance and Paxos are working on making BUSD usable on more platforms and in more blockchain projects. BUSD and the Binance Smart Chain are compatible with Ethereum technology supporting smart contracts, so it is a popular coin of choice for DApp payments and transfers.

Is Binance USD Safe?

Stablecoins don’t have the volatility of other cryptocurrencies, so usually, their value should not plummet, losing your investment. However, there can still be risks with stablecoins, such as fiat reserves not being sufficient if there’s a run on the market or if they are subject to a hack or major technical issue.

Why is BUSD so popular?

BUSD is a popular stablecoin and has gained some traction due to its connection with the Binance exchange and Paxos and its use of Ethereum technology.

 

Is Binance USD a good investment?

Binance USD price is pegged to the value of the US dollar, so it’s not meant to be an investment mechanism and won’t accumulate value.

 

author
About Marcel Deer
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.
bitcoinBitcoin
$ 67,326.04
$ 67,326.04
5.73%
ethereumEthereum
$ 3,692.28
$ 3,692.28
5.88%
tetherTether
$ 0.999376
$ 0.999376
0.17%
usd-coinUSDC
$ 0.99876
$ 0.99876
0.14%
cardanoCardano
$ 0.760701
$ 0.760701
1.85%