I’ve recently bought some BUSD (Binance USD) on Binance, and although I’m somewhat familiar with the general functionalities of the platform, I’m not completely sure how to use or transact with the BUSD. I know that it’s a stablecoin so its value is pegged to the US dollar, and is commonly used in trading or as a store of value during market volatility. What I’m unclear about is the exact process to properly use it for those purposes in the Binance environment.
Could someone please clarify, for instance, how to use it to buy other cryptocurrencies or to keep as a stable asset when I think the market might go down? I’m unsure about the steps I need to take to do these things. It would be very helpful to know the specific actions to perform those tasks. Furthermore, I am curious about fees related to BUSD transactions. Do these vary for different types of transactions? I appreciate any insight you could provide on this matter.
You can use your BUSD to purchase other cryptocurrencies on Binance. To do this, navigate to the ‘Exchange’ or ‘Trade’ section and select the cryptocurrency you’re interested in buying. In the ‘Buy’ field, ensure BUSD is selected as your transacting currency. You can then input the amount of the selected cryptocurrency you want to buy and click ‘Buy’. The transaction executes according to market order, or you can opt for a limit order by selecting your preferred price.
When it comes to fees, yes, they can vary. You are usually charged a trading fee every time you execute a trade, but the exact amount varies based on your account level and the volume you’re trading. To see the fees, you can check the ‘Fee Schedule’ under the ‘Information’ section. Remember, holding your assets in BUSD when you believe the market might go down is a sound strategy, as BUSD is a stablecoin tied 1:1 with the USD and its value should remain relatively stable despite market volatility.