BUSD is Binance’s regulated USD-backed stablecoin that allows users a way to move money quickly, safely, and securely.
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.
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.