Best Binance USD BUSD Interest Rate and Highest Yield

Best Binance USD Interest Rate nad Highest Yields - Feature Image

Welcome, here we list the best Binance USD BUSD interest rates and highest yields. It´s important to let your HODL portfolio work for you so your crypto portfolio gets bigger and bigger.

Interest accounts are a perfect way to earn crypto passive income.

We also discuss how you pay tax on BUSD interest payouts, how to buy BUSD and what the risks are when you deposit BUSD into an interest account.

Best Binance USD BUSD Interest Rates

In the table below you will find all available interest rates for BUSD. You will find out that YouHodler is offering the best Binance USD BUSD interest rate.

For more information regarding each interest account, see more information below. Also, you will find pros and cons together with details regarding the deposit bonus.

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YouHodler - Best Binance USD BUSD Interest Rates

YouHodler is offering the best Binance USD BUSD interest rate. In addition, YouHodler is offering the best interest rates for many different cryptocurrencies listed on our crypto passive income page.

YouHodler Pros and Cons

YouHodler interest account pros and cons

Pros

  • High interest rates for many cryptocurrencies
  • Weekly payouts
  • No staking requirement
  • No lock up periods

Cons

  • Maximum amount to earn interest on is equivalent to $100.000

Celsius Network Binance USD BUSD Interest Rates

Celsius Network is the largest crypto lending and borrowing platform with a lot of different crypto interest accounts.

Also, they have very good interest rates, including the best Bitcoin BTC interest rate.

Celsius Network Pros and Cons

Celsius Network interest account pros and cons

Pros

  • High interest rates for many cryptocurrencies
  • Weekly payouts
  • Signup bonus $50
  • Many additional deposit bonuses 

Cons

  • CEL holding requirements to receive higher interests
  • You can get higher rates if you chose to receive payouts in CEL token rather the the native deposited cryptocurrency

Binance - BUSD Interest Rates

Binance is not offering the best Binance USD BUSD interest rates. They should be able to offer better rates since they have created this stablecoin to increase liquidity in many markets.

However, they might think they don´t have to offer better rates since there is limited competition for BUSD use-cases outside the Binance exchange.

What is Binance uSD BUSD?

Binance USD BUSD is a stablecoin issued by Binance. The purpose is to have their own stablecoin to be able to make markets liquidity more flexible within the Binance ecosystem.

Paxos Trust Company is the USD custodian and issuer of BUSD.

As for any crypto stablecoin, each BUSD you hold corresponds to 1 US dollar in the bank account. 

BUSD is 100% backed by U.S. dollars held in FDIC-insured U.S. banks.

A top auditing firm will attest to the matching supply of BUSD tokens and underlying U.S. dollars on a monthly basis.

 

Risks with Binance USD Interest Rates

The main risk for a stablecoin is that the reserves are not there once people try to cash out. Therefor, stablecoins reserves and audits of stablecoin reserves are important to understand the risks for a certain stablecoin.

BUSD’s assets in USD are being held in FDIC-insured banks. In a reserve report from Paxos, 96% of BUSD’s total market capitalization is backed by cash and other cash equivalent reserves, and US Treasury Bills back 4%.

To further guarantee these numbers, BUSD continues to be one of the few stablecoins that provide a monthly audited report of their reserves. Therefore, any BUSD holder can verify at any point in time that the supply of BUSD tokens is consistent with the USD being held and managed by Paxos.

Pay Tax on BUSD Payouts

Yes, you have to pay tax on Binance USD interest payouts. In most countries this will be reported similar to interest on fiat currencies, income from capital.

There are many crypto tax software out there to automate this process for you. The software will automatically import your transactions via an API from almost any exchange. Also, the software will categorize the interest payout and recalculate for your national fiat currency. With the premium versions you can even get the complete tax file printed and just upload to your tax authority home page.

We recommend Koinly since they have the best free version.

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Where to Buy binance USD

As you can here on the name, Binance USD is best to trade and buy on Binance. Almost all BUSD markets can be found at Binance and there is really no reason to use the stable coin anywhere else.

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