🅱️💵 How to Buy Binance USD (BUSD) in the UK?

6 min read

BUSD

Binance has recently issued a new USD backed stablecoin approved by the New York State Department of Financial Services. Where can I buy Binance USD (BUSD) in the UK? Of course, on Binance exchange and this is their native coin. You can buy directly with a debit card, ACH, or your USD balance. Alternatively, you can find BUSD trading pairs under the Markets tab.

How to buy a BUSD?

There are 2 main exchanges where you can buy this coin: Biance and Paxos. Here is a detailed guide on how to buy BUSD on Binance:

  1. Create an Account. In order to trade on any exchange, including Binance, you firstly need to register an account.
  2. Verify your Account. After you created your account and verified your email, you need to verify your identity by submitting a copy of a government-issued photo ID. It is a required step because you are going to deal with stablecoins and fiat currency.
  3. Deposit money. This step depends on your selected payment method:
    • If you want to use BTC or ETH, you need to deposit them from your private wallet to the exchange (Go to Funds -> Deposit)
    • If you want to buy BUSD with GBP, then you can wire transfer your pounds in advance.
    • If you are going to use your debit/credit card, you can skip this step and proceed to the next step.
  4. Open Order. Open the Markets tab, select the desired pair, and clicks on the Trade button. Enter all the required details, select the type of order, and submit your request.

It will be completed immediately if you selected a Market order type. If any other type, it may take some time. So don’t worry if you still have an open order in an hour or so.

Open orders

Buy BUSD on Binance

Benefits of using BUSD on Binance

  • A zero maker fee promotion for all BUSD pairs traded on Binance;
  • Several lending products at Binance where BUSD can be deposited to earn interest of as much as 15% annually;
  • BUSD can be used as collateral for borrowing on Binance Margin Trading;
  • BUSD can also be used as cross collateral on the Binance Futures platform;
  • Binance has introduced 48 different BUSD trading pairs, including trading against the Chinese yuan (CNY), Russian ruble (RUB), and Great Britain pound (GBP);
  • Binance platform has introduced a feature that allows users to instantly convert from several other stablecoins to BUSD on a 1:1 basis and without fees. This stablecoin convert feature can be used with TUSD, USDC, and PAX.

Where to store BUSD?

Once your order is completed and you can see your BUSD on your account, you probably want to move them to a secure wallet. As we all know, it is not the best practice to store money on the exchange for a long time.

Since the BUSD token is an ERC20 token you can transfer the coin to any other ERC20 supported wallet. You can use any free wallet or purchase one of the hardware wallets such as Ledger Wallet to store your BUSD tokens.

Ledger Nano S

Ledger Nano S is a widely-used hardware wallet developed by the French company ledger. It is a compact USB device based on a smart card.

To activate the Nano S, you need to connect it to the computer via the USB cable. When you choose the option to create a new wallet, you will need to confirm the PIN code. You must remember the PIN code because you will need it each time you want to access your Nano S.

Pros

  • The setup is pretty simple and straightforward.
  • Ledger Nano S supports a vast variety of coins.
  • Integrates with a large number of software wallets.
  • It is a very affordable hardware wallet ($59), giving a very high-value proposition.
  • The entire recovery process can be done from the device only without even connecting it to a computer.
  • Features Ledgers secure chip technology.
  • Pretty inconspicuous looking since it resembles a simple pen-drive. Plus, it is pretty lightweight, so can be easily carried around.

Cons

  • Not open-source hardware.
  • The recovery sheet can be stolen or replicated if enough care isn’t taken.

Ledger Nano X

Nano X has superior security thanks to the use of two chips. It also has a Bluetooth feature that will allow users to use the Nano X with their phone, or laptop, without the need for a wire.

The most significant difference between Nano X and Nano S is that the former can hold multiple cryptocurrencies at once. In the Nano S, the users had to manually install and remove the apps to use a particular wallet. However, users can install multiple crypto wallets in Nano X at the same time.

While the setup is mostly similar to Nano S, we must look at the unique feature of the wallet, how to add coins to your device.

Adding coins to your device

Each time you want to add new coins to your Ledger, you need to install its respective app. So, if you want to add Bitcoin, then you must add the Bitcoin app on your Nano X.

Pros

  • The setup is pretty simple and straightforward.
  • It has Bluetooth functionality, making it easier to use on the go.
  • The entire recovery process can be done from the device only without even connecting it to a computer.
  • Features Ledgers secure chip technology.
  • Pretty inconspicuous looking since it resembles a simple pen-drive. Plus, it is pretty lightweight, so can be easily carried around.
  • Allows multiple apps and coins to function at the same time on the wallet.

Cons

  • Not open-source hardware.
  • The recovery sheet can be stolen or replicated if enough care isn’t taken.
  • The UI could be a little difficult to understand for newcomers.

F.A.Q

What is Stablecoin?

Stablecoins are digital assets designed to mimic the value of fiat currencies like USD or EUR. They allow users to cheaply and rapidly transfer value around the globe while maintaining price stability.

Is there any difference between the cryptocurrency and stablecoin?

Yes, there is.

Cryptocurrencies are excellent from a technological standpoint. However, the fluctuations in their value have ultimately rendered them highly risky investments, and not ideal for making payments. By the time a transaction settles, coins can be worth significantly more or less than they were at the time they were sent.

While it is different from stablecoins. The last ones see negligible price movement and closely track the value of the underlying asset or fiat currency that they emulate. As such, they serve as reliable assets amid volatile markets.

The most popular kind of stablecoin is that which is directly backed by fiat currency with a 1:1 ratio. We also call these fiat-collateralized stablecoins. A central issuer (or bank) holds an amount of fiat currency in reserve and issues a proportionate amount of tokens.

For instance, the issuer may hold one million dollars, and distribute one million tokens worth a dollar each. Users can freely trade these as they would do with tokens or cryptocurrencies, and at any time, the holders can redeem them for their equivalent in USD.

Examples of the best-known stablecoins include tether (USDT), trueUSD (TUSD), Gemini dollar (GUSD), and BUSD coin by Binance.

What is BUSD?

BUSD is a fiat-backed stablecoin maintaining a peg with the US dollar.

BUSD is a U.S.-regulated stablecoin, fully backed by U.S. dollars: 1 BUSD = $1.00 USD. BUSD offers faster ways to fund your trades and is acceptable as a medium of exchange, store of value, and method of payment across the global crypto ecosystem.

The BUSD was created with the intention of improving the decentralized financial ecosystem through the use of a frictionless global network that allows digital assets to increasingly add accessibility, flexibility, and speed to transactions.

Binance USD’s were issued as ERC-20 tokens on the Ethereum blockchain. They are backed on a 1:1 basis by U.S. dollars that are held in U.S. bank accounts owned by Paxos, who is the partner of Binance in this project.

Additionally, BUSD has been one of only three stablecoins thus far approved by U.S. regulators, with the other two being GUSD issued by Gemini Trust Company, and PAX, also issued by Paxos.

Binance USD is transacted on the Ethereum blockchain network in the same manner as any other ERC-20 token. Any user looking to redeem their BUSD can simply send the tokens to a Paxos controlled address where the tokens will be burned and the corresponding fiat currency amount will be transferred from the Paxos reserve accounts to the user’s bank account.

How to use BUSD

Summing Up

If you need to buy BUSD coins, you should definitely go to the Binance exchange. Where you can easily buy it using multiple payment methods. Once you acquire your new stablecoins, don’t forget to move them to a reliable wallet like Ledger Nano to keep your coins safe.