What is Binance USD?
Binance USD (BUSD) is a “stable coin” which is a cryptocurrency whose value is pegged to the US dollar. This means that 1 BUSD is always available to buy and sell for $1.
Binance USD has received approval from the New York State Department of Financial Services (NYDFS), which is quite impressive given the skeptical stance of U.S. authorities on cryptocurrencies.
BUSD holding is useful when trading cryptocurrencies. For example, if you want to sell the cryptocurrency you have (maybe you think the price is about to go down), you can sell it for a stable coin like BUSD instead of going back to fiat currency (like the US dollar). That way, your money never leaves the exchange, and you’ll have an easier time redeeming it in cryptocurrencies when you’re ready.
