In this DeFi tutorial, we outline the safest and easiest way to add the Binance stablecoin BUSD to your MetaMask wallet.
Our guide has been verified to ensure that readers are adding the verified BUSD contract that is specified by the Binance Smart Chain. Follow our simple 4 step process to get started.
How to add BUSD to Metamask
Binance USD or BUSD is a stablecoin developed and deployed by the Binance Smart Chain team that is pegged to dollar. It is the most liquid trading pair across DeFi and GameFi on BNB Chain and the centralized Binance trading platform.
If you need to add BUSD to your Metamask account, you can follow this 4 step guide to get started.
- Log in to your Metamask account or download it and create a wallet.
- Once signed in, select the 'import tokens' button at the bottom of your Wallet extension.
- You will then get taken to the 'Import Tokens' page. Enter 'BUSD' into the search field and select Binance USD (BUSD).
- Once you select BUSD, you can click the 'Import Tokens' button to add it to your Metamask wallet.
What is Binance USD (BUSD)?
Binance USD is a dollar-backed stablecoin that is issued by the Binance Smart Chain team. The token is fully collateralized by USD and it can be redeemed for dollars at a 1:1 ratio. The BUSD stablecoin is designed to be used as a medium of exchange on the Binance trading platform and it is also the most liquid trading pair across DeFi protocols on Binance Chain.
Is BUSD a safe Stablecoin?
The answer to this question is not as simple as a yes or no. BUSD is a stablecoin, which means that its value is pegged to the US dollar. This peg ensures that one BUSD is always worth $1 USD. However, given the implosion of other stablecoins like UST and MIM in the crypto space, there are some risks involved with holding stabelcoins that are issued by off-shore entities.
So, while BUSD is a stable and reliable currency, there is still some risk involved in holding it.
What are the benefits of using BUSD?
Using BUSD has a number of benefits, including:
- Stability: As a dollar-backed stablecoin, BUSD provides users with stability and peace of mind knowing that their money is not subject to the volatility of crypto markets.
- Liquidity: BUSD is the most liquid trading pair across DeFi protocols on Binance Chain, meaning that users can always buy or sell BUSD for other assets with ease.
- Fees: If you trade with BUSD on the Binance trading platform, your fees are cut in half from 0.1% to 0.05% per trade.
There are also some risks, which include the stablecoin losing peg - however there has been no evidence of that happening in the past.
In summary, this DeFi tutorial presents a safe and easy method for adding the Binance stablecoin BUSD to your MetaMask wallet. By following our verified 4-step process, you can ensure that you are adding the authentic BUSD contract from the Binance Smart Chain. BUSD offers several advantages such as stability, liquidity, and reduced trading fees on the Binance platform. Although stablecoins like BUSD come with some inherent risks, it remains a stable and reliable currency option for users in the DeFi ecosystem.