What is BUSD?
BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. For every unit of BUSD, there is one U.S. dollar held in reserve. In other words, the supply of BUSD is pegged to the U.S. dollar at a 1:1 ratio. As a result, holders can swap their tokens for fiat and vice versa. Paxos, the project’s owner, releases monthly audits of BUSD’s reserves.
As a stablecoin, BUSD is designed to maintain a stable market value. It allows investors and traders to hold a low-volatility asset on the blockchain without the need to exit the crypto space.
Why purchase HMR using BUSD?
You can purchase HMR by swapping any Pancakeswap-supported tokens, mainly BNB, but the Pancakeswap mechanism will swap BNB→BUSD→HMR. This means your tokens are swapped into BUSD and then to HMR. One extra swap means extra fees will be needed, which would be unnecessary if you had BUSD.
Also, while BNB has a fluctuating price, BUSD is a stable coin pegged to the USD, so the price is much more stable than BNB. So, in a bearish market where BNB is depreciating, it is safer to use BUSD. However, you must be reminded that you still need a little BNB for processing gas fees whether you use BUSD or BNB to purchase HMR.
What is the overall process?
1) Send any crypto-asset available in the Binance BUSD market
2) Sell the token to exchange to BUSD
3) Withdraw BUSD and send it to your Metamask wallet
4) Swap HMR using BUSD
Overall process in detail
1)Send any crypto-asset available in the Binance BUSD market
If you wish to buy BUSD, you need to send any BUSD supported pair to your Binance account. If you have USDT, you can always send USDT and purchase BUSD through the BUSD/USDT pair. The screenshot above is when we have used Ripple(XRP) as an example for users without USDT. Due to transfer speed and convenience, we recommend you to use XRP. TRX is another good choice. For XRP users, you should use the Ripple network and use the address and memo provided for withdrawing from your original account elsewhere.
2) Sell the token to exchange to BUSD
After depositing XRP or USDT or TRX, you need to sell/buy to get BUSD.
XRP/BUSD : Sell XRP→Earn BUSD
BUSD/USDT : Buy BUSD→Earn BUSD
3) Withdraw BUSD and send to your Metamask wallet
Once you have BUSD as shown in the screenshot above, you can withdraw to your Metamask account.
Input your Metamask wallet address and select the network as BSC (below picture)
Finally, press withdraw to send BUSD to your Metamask wallet.
4) Swap HMR using BUSD
After a few minutes, you will notice the funds have arrived successfully in your Metamask wallet.
Just like what we have tried with BNB, you just need to swap BUSD→HMR
Please make sure you have sufficient BNB for processing fees
Conclusion
This tutorial guide has taught you how to swap HMR with BUSD and why we should use BUSD. BNB and BUSD both have their pros and cons caused by the nature of price fluctuation in the two coins. We hope this guide offers you another option in making your investment decisions.
