Review on Binance USD by Benaiah A. Akinlade
BUSD: Allowing you to save your USD on a blockchain instead of banks
Stablecoins are cryptocurrency fail safes for shrewd investors. They allow you to have a feel of cryptocurrencies and at the same time eliminating the fear of losing the value of your original investments. It is just like keeping the original value of your fiat currencies on a blockchain without fear of senseless charges by banks.
Binance USD is a US Dollar backed cryptocurrency stablecoin of the Binance blockchain and exchange. It is approved by the New York State Department of Financial Services in partnership with Paxos Trust Company (USD custodian and also the company that issued BUSD) and Binance crypto exchange. It holds the same financial value as the USD. This means that 1 BUSD = 1 USD.
The BUSD stablecoin is supported on BEP2 and ERC20 blockchains. Holding this stablecoin allows you to transact your dollars anywhere in no time and very cheaply on the blockchain.
If you’re looking to keep your USD on the blockchain rather than in banks, then BUSD is good for you.
Pros
- BUSD gives you a faster alternative to fund your transactions
- It is available for transactions on the Ethereum and Binance blockchains.
- BUSD is available for trading on a good number of exchanges
- It thrives on the stability of the USD
- It is a widely acceptable currency of exchange just like USD
Cons
- BUSD value falls when USD value falls
- Profits are not easily made with investing in stablecoins because they are not as volatile as cryptocurrencies
