BUSD is one of the most popular fiat-backed stablecoins in the crypto world with various use cases.
Using Binance P2P to buy BUSD is one of the few fee-free ways to buy BUSD.
Buying cryptocurrencies has not always been cheap or easy. However, over time and as the ecosystem evolves, we have different options. P2P trading was actually one of the first ways people bought cryptocurrencies. It still exists and, perhaps surprisingly to some, is one of the cheapest ways to get hold 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 on fees.
BUSD is a fiat-backed, regulated, USD-pegged stablecoin founded by Paxos and Binance. Paxos offers external companies a stablecoin-as-a-service product that allows Binance to become a partner and help create BUSD and Binance-Peg BUSD. One US dollar is held in reserve for every single BUSD. BUSD holders can exchange their tokens for US dollars and vice versa at any time. Paxos also publishes monthly statements of BUSD’s reserves for the sake of transparency.
Sometimes liquidity pools present arbitrage opportunities as prices can differ between AMMs. Holding BUSD and Binance-Peg BUSD allows arbitragers to quickly switch exchanges and take advantage of the wide acceptance of BUSD and Binance-Peg BUSD across platforms. As mentioned, there can also be arbitrage opportunities by buying BUSD and cashing out against fiat.