Cryptocurrency is known for its fast transaction speeds, global accessibility, and quick price movements. As much as those features of cryptocurrency can excite and inspire people around the world, that last quality – quick price movements – can make some investors shy away. Fiat money can take considerable time to deposit into an exchange, time that may be wasted if a price point is missed.
Binance, one of the most popular cryptocurrency exchanges in the world, seeks to fix this issue with BUSD – a highly regulated, USD-backed “stablecoin” that offers investors a way to move money quickly, safely, and securely. In this article, we’ll take a quick look at what a stablecoin is, how BUSD works, and why we added it to the Metal Pay Marketplace.
What is a stablecoin?
Of all the terms used to describe cryptocurrency prices, “stability” is not often mentioned. Stablecoins seek to address this by pinning their value to a relatively stable fiat currency – often the US Dollar. Whereas most cryptocurrencies see their price change depending on the ever-fluctuating supply-vs-demand ratio, stablecoins do not change in value. For example, BUSD will always equate to one US Dollar; no matter how many people want to use BUSD, one BUSD will always equal one dollar.
Why do people use stablecoins?
Cryptocurrency can usually be bought by trading fiat money (like US Dollars) for a cryptocurrency, or by trading one cryptocurrency for another (often referred to as “cryptocurrency pairs”). Stablecoins offer investors a reliable way to purchase cryptocurrency using a pair that is tied to a predictable, reliable monetary value. Additionally, using a cryptocurrency pair when making purchases allows fast transactions – no more waiting for fiat deposits to clear before making a move.
Additionally, using a stablecoin allows you to pull money out of cryptocurrency investments that you might deem as too risky and “park” it somewhere else that’s accessible. Investors who move money into BUSD often do so to keep it ready to move again, but safe from price fluctuations. Using stablecoins is a good way to catch your breath before diving into your next market move.
Why did Metal Pay add BUSD?
We love giving our users access to more cryptocurrency projects that we see a real use for. By providing access to BUSD in the Metal Pay Marketplace, we’re giving our users a way to move funds between Metal Pay and Binance quickly and efficiently. Our users enjoy the Metal Pay Marketplace experience, but sometimes there’s a cryptocurrency you want to chase somewhere else – and we totally get that. With BUSD in our Marketplace, you’re free to make moves on another exchange, and then come on back to Metal Pay when you’re finished.
Think of Metal Pay as your home base.
You’ll probably see a flurry of activity on our social media accounts in the coming days, so we made this blog post to ensure our adding of BUSD doesn’t get lost in the avalanche of updates. We’re working hard at Metal to bring you the best products with the most innovative solutions, so keep watching our social media accounts to see what happens next: Twitter | Instagram | Facebook.
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