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One of the Cheapest Ways to Buy BUSD: Binance P2P

2022-08-04

Main Takeaways

  • BUSD is one of the crypto world’s most popular fiat-backed stablecoins with various use cases.

  • Using Binance P2P to purchase BUSD is one of the only fee-free ways to purchase BUSD.

Binance P2P’s competitive peer-to-peer cryptocurrency trading model means you spend less on fees when purchasing BUSD. Take a look at why BUSD is so popular and why you might want to consider Binance P2P for your next BUSD purchase.

Buying cryptocurrencies hasn’t always been cheap or easy. However, as time has passed and the ecosystem has developed, we now have various options. P2P trading was, in fact, one of the first ways that people bought cryptocurrency. It still exists and, perhaps surprisingly to some, is one of the cheapest ways to get ahold of crypto. With the current demand for fiat-backed stablecoins like BUSD, Binance P2P is a great option to consider if you want to save money on fees.

What is BUSD?

BUSD is a fiat-backed, regulated stablecoin pegged to the U.S. dollar, founded by Paxos and Binance. Paxos offers a Stablecoin as a Service product to external companies, allowing Binance to partner and help create BUSD and Binance-Peg BUSD. For every single BUSD, one U.S. dollar is held in reserve. This mechanism pegs BUSD to the U.S. dollar at a 1:1 ratio. At any time, BUSD holders can swap their tokens for U.S dollars and vice versa. Paxos also releases monthly attestations of BUSD’s reserves for transparency.

Disclaimer: BUSD is issued on Ethereum by Paxos and regulated by the NYDFS. Binance provides the pegged token service to lock BUSD on Ethereum and issues an equivalent amount of Binance-peg BUSD on other networks. Please note that Binance-Peg BUSD is a Binance product. It is not issued by Paxos nor regulated by the NYDFS.

Why Do People Use BUSD?

BUSD is designed to maintain a stable market value and avoid the volatility often seen in crypto. This has led to it having a variety of use cases:

Avoid crypto market price fluctuation

There is a real demand for stable assets in crypto for riding out market volatility. However, there are fewer options than in traditional finance, where fiat or securities are easily traded. BUSD and Binance-Peg BUSD offer a similar opportunity to crypto investors and users in an easily-accessible way.

Lock in gains without needing to convert to fiat

Before stablecoins, locking in gains would often require selling your crypto for fiat. This process can take days to complete and also charge fees. BUSD and Binance-Peg BUSD, however, provide highly liquid ways to lock in profits without needing to go off-chain.

Arbitrage

Both BUSD and Binance-Peg BUSD are popular stablecoins on Automated Market Makers (AMM) for liquidity pairs. Sometimes, liquidity pools provide arbitrage opportunities as prices can differ across AMMs. Holding BUSD and Binance-Peg BUSD allows arbitragers to quickly move between exchanges and take advantage of BUSD and Binance-Peg BUSD’s wide acceptance on different platforms. As mentioned earlier, there may also be arbitrage opportunities through purchasing BUSD and cashing it out for fiat.

How can you buy BUSD? – Binance P2P

There are a few main ways to purchase BUSD on Binance. First, you could use a credit or debit card to purchase BUSD directly with fiat. However, this includes a transaction fee. You can also trade for BUSD on the spot market with other cryptocurrencies or fiat on your account. 

This method also charges fees to the user on most trading pairs. For those who want to buy BUSD without any fees and with alternative payment methods, Binance P2P will likely be the most suitable option.

How Long Does BUSD P2P Take to Transfer?

After finding a seller that offers a suitable payment method for you, you can begin making your Binance P2P trade. Usually, we expect most transfers to be completed in 15 minutes or less. However, if you haven’t received your BUSD within this time, you can contact the seller by clicking the Phone or Chat icon in the P2P UI.

Benefits of P2P Trading

1. Access to a global marketplace

Binance P2P gives you access to a global market of cryptocurrency traders. Buyers and sellers can meet from over 180 countries and do business within seconds.  

2. Zero Trading Fees

Traditional crypto exchanges normally charge a fixed fee or percentage per trade. Binance P2P, however, allows users to connect and trade directly with zero fees. Not all P2P exchanges offer this, so carefully check the terms and conditions when choosing a peer-to-peer exchange. 

3. Multiple Payment Methods

Binance P2P has over 300 payment methods available for buyers and sellers. These include local bank transfer and e-wallet payments , as well as in-person cash payments. These are particularly useful for those who want a face-to-face transaction or don’t have access to a credit or debit card.

Getting Started with BUSD P2P Trading on Binance

One of the key features users look at when picking an exchange or trading service is its fee. For that reason, Binance P2P has been a popular option for many of our users.

If the idea of fee-free BUSD purchases sounds appealing, make sure to exactly how the process works with our collection of guides and articles:

 

Risk Warning: Digital asset prices can be volatile. These fluctuations may affect the value of digital assets you buy or sell on the Binance P2P platform, which may be lower or higher at the time of and after completion of the transaction. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. By using the Binance P2P platform you trade digital assets directly with other users. Binance facilitates transactions by releasing the digital assets once the offline fiat currency exchange is confirmed by both parties. The trading amount, price and conditions of each advertisement are set by the user publishing it. All payments are final upon completion, unless otherwise required by law. Binance has neither the right nor the obligation to resolve any disputes arising from a completed payment. Binance is not liable for any loss you incur in connection with a completed payment. Not financial advice. For more information, see our Terms of Use and Risk Warning.