What is Binance USD and How to Use It

How Binance USD Works

Cryptocurrencies have gained a lot of popularity, especially among investors and traders looking to capitalize on volatile price movements. However, this volatility makes them difficult to use for transferring and spending money, so the concept of stablecoins was created.

Stablecoins are designed to solve the problem of volatile cryptocurrencies, giving traders a way to easily realize gains and allowing people to send transfers more easily. With stablecoins, you don’t need to worry about your funds suddenly losing value due to market conditions.

Binance USD and other stablecoins work by being pegged to fiat currency. In the case of Binance USD, this is pegged to the value of the US dollar, so one BUSD is always equal in value to $1. The coin can be stored and transferred just as any other cryptocurrency, and it also operates on a blockchain.

Binance USD Blockchain

All cryptocurrencies are based on blockchain technology, and Binance USD is no different. BUSD is primarily issued on the Ethereum blockchain, but it can operate on any network that allows the BNB chain. Like any other crypto, all transactions involving BUSD are stored on the chain, and it’s possible for users to swap the chain on which their coins are held by using the Binance exchange.

While a lot of cryptocurrencies are created to be decentralized, Binance USD and other stablecoins are centralized. BUSD was created by Binance in partnership with Paxos Trust Company, a New York-regulated company that manages several stablecoins. The company is in charge of minting new coins and managing the fiat reserve that BUSD is pegged to. In addition, it has the power to burn coins and potentially freeze accounts and confiscate funds if illicit use is suspected.

How Binance USD is Pegged

Binance USD is a fiat-collateralized stablecoin, meaning that its circulating supply is always backed up by cash reserves. In order to maintain the peg and keep value at exactly $1, Binance and Paxos have committed to maintaining the reserves at 1:1 with the circulating supply, and it’s always possible to trade one BUSD for $1.

As a New York-regulated company, Paxos is required to provide detailed information on its reserves and to ensure that a 1:1 ratio is always maintained. Regular audits provide full transparency, and Paxos is a highly regulated company, so users can trust it.

Purchasing Binance USD

You can easily purchase Binance USD from an exchange, swapping fiat currency or any existing crypto you might have. Multiple currency pairs are supported, and trading is incredibly easy. The best way to obtain BUSD is through Binance, but BUSD trading pairs are supported at other major exchanges too.

Whenever you purchase Binance USD, cash is added to the reserves to reflect your purchase, and when you cash your BUSD out, the coins are burned to always maintain the 1:1 ratio. Because of how easy it is to purchase and use, Binance USD has become the third-largest stablecoin by market capitalization, and its trading volume is growing all the time.

Sending Binance USD

Once you’ve bought your BUSD from an exchange, you can send it directly to your crypto casino account or to a crypto wallet that supports the ERC-20 or BNB chain. Sending Binance USD is easy, and all transactions are completed very quickly. However, you should be aware that, like all crypto transactions, you can’t reverse your transfer once you send it.

Because crypto transfers can’t be reversed, it’s very important to make sure you always use the right address. Copy the recipient wallet address and paste it directly into the required box when making a payment, and double-check before you send. You should also make sure that you’re sending it over a supported network.

BUSD supports several different networks, but you should note that the fees you pay and the time it takes for your transaction to be completed will depend on the network you choose. Fees are normally very low, but congestion can be a factor.

Binance USD Features

Binance USD is different from most other cryptocurrencies in a number of ways. Here are some of its most important features:

• Stable Value – The main draw of stablecoins is that their price doesn’t change over time. This means that 1 BUSD is always equal to $1. Having a stable value makes it much easier to use BUSD for online payments and online gambling, as the value of your funds won’t change over time.

• Highly Regulated – Compared to other stablecoins, Binance USD is highly regulated, which increases the trust that users have in the coin. Paxos Trust Company is regulated in New York, and the BNB chain includes smart contracts that help increase security and prevent illicit use.

• Backed by Cash Reserves – BUSD is fully backed up by cash reserves and is subject to regular audits to ensure a high level of transparency. No matter what the current market conditions are, this means that BUSD will always be equal to the value of one dollar, and you can always trade your BUSD for dollars at any time.

• Available on Multiple Networks and Platforms – While Binance USD is issued by Binance, it’s available to trade on multiple centralized and decentralized exchanges. Not only that, but it can also operate on the BNB chain and the ERC-20 network. This makes it easy to access and use.

The History of Binance USD

Here are some of the most important events in the history of Binance USD:

• September 2017 – Binance is founded in China by Chinese-Canadian developer Changpeng Zhao before moving to Japan to circumvent Chinese crypto laws.

• September 2019 – Binance forms a partnership with Paxos, a stablecoin developer, to create the stablecoin BUSD.

• January 2020 – BUSD is approved by regulators from the New York State Department of Financial Services (NYDFS).

• February 2023 – The NYDFS instructs Paxos to cease issuing BUSD after the United States Securities and Exchange Commission (SEC) claimed that BUSD is an unregistered security.

• March 2023 – Due to concerns over increasing regulations and liquidity of cash reserves, Coinbase removes BUSD from its exchange.

Binance USD for Gambling

The main advantage of Binance USD is that its price remains stable over time, which makes it far more suited to gambling. Since 2014, gambling with crypto has grown in popularity, and there are now hundreds of crypto casinos to choose from.

These BUSD gambling sites offer loads of exciting games and even Binance USD betting, as well as bonuses that you can claim by depositing crypto. You can even deposit and start playing with BUSD. Before you start, though, it’s important to make sure you choose a safe and trusted site.

Binance USD Casino Regulations

Crypto casinos are still relatively new and, therefore, are still facing regulatory challenges. In a lot of areas, gambling with crypto may not be fully legal yet, so you should check with your local laws. However, it’s still possible to stay safe and have fun while playing, provided you choose a licensed site with a good reputation.

Most BUSD Casinos are licensed in Curacao, and you should always check for the license before you sign up. A casino license is a good indicator that the site you use is safe, as it means it has to adhere to regulatory standards.

Provably Fair Games

You can play loads of exciting games at Binance USD casinos, including slots, table games, live games, and more. The best software providers are featured, and there’s a lot of variety to choose from. However, you can also enjoy crypto games like Dice and Crash that you won’t find anywhere else.

These games aren’t just fun to play, they’re also provably fair. Using blockchain technology, provably fair games allow you to check that they’re not rigged, with all transactions visible on the chain.

FAQ

Is it legal to gamble with Binance USD?

Gambling with Binance USD and other cryptocurrencies may or may not be legal, depending on where you live. It’s important to check your local laws before you play, as some countries and regions may have laws against it.

Where can I buy Binance USD?

You can buy Binance USD from almost any major exchange, swapping fiat currency or cryptocurrencies for your BUSD tokens. Make sure you only use a trusted crypto exchange if you want to keep your funds secure, Binance is one of the best options.

Which are the best crypto casinos accepting Binance USD?

A growing number of crypto casinos now accept deposits and withdrawals in BUSD. If you want to start playing with this stablecoin, you can find a list of the best sites right here, along with our expert reviews to help you decide.