A stablecoin or BUSD is nothing but a cryptocurrency type whose worth is linked to an exterior asset, like gold or the U.S. dollar, to even out the price.
What is BUSD？
BUSD is a fiat-backed and regulated stablecoin tied to the U.S. dollar. One U.S. dollar is always kept in reserve for every single unit at a 1:1 ratio, and holders can exchange their tokens for fiat. Being a stablecoin, it is made to sustain a stable marketplace worth.
It enables traders and investors to keep a low-volatility commodity on the blockchain without leaving the crypto environment. Paxos founded the BUSD stablecoin, and
Binance made a cryptocurrency that the USD dollar would support. The main feature of BUSD is that a single unit of it is equal to one U.S. dollar.
Hence, the cost of the stablecoin changes directly with the cost of USD. It gives a monthly audited statement of reserves with rigorous regulatory standards to ensure user assets’ safety and security.
Due to its stability relative to the USD, BUSD empowers crypto users and traders with the capability to transact with other blockchain and digital-based assets while reducing the risk of volatility.
Because of the behavior of cryptocurrency, crypto owners may see volatile fluctuations in their portfolio worth. Using a BUSD can aid considerably in dodging periods of market instability.
Why Should You Choose BUSD as Your Collateral？
BUSD-margined futures give crypto-futures traders different strategies and viewpoints on trading.
1. Enjoy Maker Rebates and Fee Discounts
Traders who use margined contracts will get maker rebates and lower fees. The fee reduction applies to any trading pairs, including BUSD, BTC perpetual contracts, or ETH/BUSD contracts.
2. Versatility
BUSD is a worldwide settlement currency that enables traders and investors to trade numerous contracts (BNB, ETH, BTC, etc.). That implies that a trader can open any contract in the preferred crypto and settle the stablecoin, reducing the requirement for traders to purchase the underlying cryptos to sponsor any futures positions.
That reduces an investor’s fee because no exchange conversions will occur while settling in the BUSD.
3. Ease of estimating Returns
The cost of fiat-based stablecoins such as it is tied to the cost of a fiat currency. When it comes to the most popularly adopted stablecoins, they are tied to the USD, implying that 1 BUSD must always be equivalent to one U.S. dollar.
Therefore, a BUSD-Margined futures trading will be simple and easy to analyze for fiat money. If you don’t wish to computer USD and use BUSD, you can verify the exchange price of $1 to the cost of their required currency and feel sure that BUSD maps straight to the same exchange price.
Benefits of Holding BUSD
BUSD gives exceptional benefits over other stablecoins.
1. Strict Compliance and supported by Cash Equivalents and Cash
BUSD is a fiat-supported and regulated stablecoin tied to the USD. The cost of each stablecoin token is connected straight to the USD cost, and the sum of reserve dollars exceeds or is equal to the amount of stablecoins outstanding.
2. Buy and redeem without extra charges
Making transactions with BUSD on the Binance exchange has also proved to be a reasonable option. Binance has introduced the Zero Maker-Fee promotion incentive to different BUSD pairs plus no transaction fee promotion for four pairs.
You can trade and buy BUSD without extra charges and enjoy the fantastic liquid in the Margin and Spot marketplace. For instance, you will not acquire fees if you create a maker-trade on BUSD/BTC in the spot marketplace.
In addition, if you begin trading on a BUSD stablecoin pair like USDT/BUSD, you can efficiently perform transactions without extra charges. These initiatives will aid in reducing your overall trading costs and will aid you get more revenue.
How to Start Trading BUSD-Margined Futures?
Trading in BUSD-M futures is straightforward compared to most beginners – you will only require a futures trading account. Here are some easy steps to sell or buy BUSD-M futures contracts on the Binance platform:
- Open Account: Create your futures trading account on the Binance platform. You should use a 2FA verification to add money to your future account so that you can quickly begin trading on Binance Futures without any tension.
- Deposit Money: Binance Futures supports numerous cryptocurrency assets as collateral.
- Choose Contract: Choose your favorite BUSD-M futures contract. You should choose BUSD Perpetual under the option “USD-M Futures.”
- Select Leverage: For your BUSD-M futures contract, you need to choose the right leverage. 20x is the by-default leverage. However, you can amend their leverage.
- Place Order: You can place orders as per different types of orders accessible on Binance Futures. For beginners, you can choose a buy-market or buy-limit order for buying your first BUSD-M futures contract.
How to Use the Multi-Assets Mode to Trade BUSD-M Futures?
Trading BUSD-M contracts under Multi-Asset Mode can provide more affordable advantages. If you hold BUSD, you can not just save some bucks on trading costs in the Margin and Spot markets; you can also save money on charges trading on the BUSD-M contracts.
Moreover, with Multi-Asset Mode, you can easily trade USDT-M contracts, and you will not require converting them to USDT. That will allow you to open positions in BUSD-M and USDT-M contracts whenever changes occur.
If you hold a USDT, you can save money on the fees by trading BUSD-M contracts because they give maker rebates and lower costs. You can quickly eliminate your transaction charges and enjoy more revenue.
In Multi-Assets Mode, you can also trade in two different ways on the same primary crypto as they can trade in USDT or BUSD. For example, if you think that BUSD/BTC would take a loss because of a future price drop in BTC, you could short a USDT/BTC contract to offset the potential loss.
Using Mock Trading to Sharpen Trading Skills
You can easily access the Mock Trading of the Binance Futures’ to hone your trading skills. That testnet atmosphere is a recreation trading platform for practicing trading live cryptocurrency marketplaces in real-time with no capital risk.
1. for accessing Mock trading, visit the Binance Futures and click on the option log-in or sign-up for creating a new account on Binance Futures.
2. Click on the Profile and then Mock trading.
3. Click on the continue option for creating a Binance Futures testnet account using the same credentials as your Binance account. This account will have a hassle-free initial balance of 3,000 USDT to allow you experience all of the exciting features that Binance Futures offers. You can easily handle your digital portfolio in a testnet atmosphere and test with various risk levels by using leverage and taking profit and stop-loss orders.
4. Click on the option “Back to Live” whenever you can put your trading abilities to the test on real Binance Futures.
5. Also, you can access the testnet environment of Binance Futures through the Binance application by clicking on Futures, Menu, and then Mock Trading.
6. For adding testnet money to your Mock Trading account, you can click on Faucet, choose Coin and then click on Add asset. You can check your accessible testnet balance and test with various risk levels to polish your trading abilities.
Conclusion
BUSD is a helpful tool and a stable investment for investors and traders. Its audited reserves and regulated status held in reliable monitory bodies provide the coin with a higher level of dependability. If you daily use Binance Chain or Binance Smart Chain, BUSD is a perfect option for stablecoin for use besides other projects.
