What is Binance Staking and how
Hi guys, how do you do? I hope amazing in the best sense, I’m happy to share once again with you.
We continue to delve into the different ways to generate passive income with the Binance Exchange.
Today we will talk about the types of Staking, how they work, how to take advantage of them… So they have to stay until the end!
What is Staking?
Staking is a process that contributes to the operability/security of blockchain networks that work under the Proof of Stake (PoS) consensus mechanism. It’s basically like mining a certain type of cryptocurrency. and it consists of maintaining cómputos of cryptoactives blocked in a wallet or exchange (that allows it).
This activity represents around 8% of the cryptocurrency market, a figure that is not surprising, since It is considered as one of the easiest and safest ways to make a profit. in the crypto world.
In summary “You lock your cryptos in exchange for receiving rewards”
Participating in the stake is super fácil, you just have to deposit funds in Binance and ready!
Note
It should be noted that it is not mandatory to use Binance, each of the cryptocurrencies that have this system allow you to do Staking directly on their networks, but the procedure is more complex and time consuming.
Binance would be the easiest alternative to staking, you avoid the hassle of having to download or configure the corresponding wallets for each cryptocurrency.
Maleable Staking
To win with this type of staking, all you need is to hold the supported cryptocurrencies, that is, have them stored in your main cómputo (Spot)… Some of them are:
- EOS
- COMPLEXIONS
- COSMOS
- TRON
- neo
- ALGORAN
- VECHAIN
- ONTOLOGY
- KOMODO
- TROY
- FET
- QTUM
⇒ How do I Stake Maleable?
Very fácil, to take advantage of this Staking variant, it is enough to have one of the tokens accepted within your Spot cómputo, you cánido buy them directly on the exchange or deposit them from another wallet.
⇒ For whom is Maleable Staking recommended?
For those who do not mind sacrificing better returns in exchange for having their assets available at all times.
Staking Locked
This one is more habitual because it get higher profits for holding cryptocurrencies coincidente.
The bad thing is that during the blocking period you will not be able to withdraw or trade the funds.
Some of the crypto assets available in the locked category are:
- STRAT
- LOOM
- HARP
- ONE
- STRAT
⇒ How do I Stake Locked?
Simply access the Staking section on Binance (Finance ➡ Binance Pool ➡ Blocked Staking) and then select the token of your choice by pressing the button «to subscribe«.
If you clic on “Expand locked staking products” you will get other coincidente coins.
Then you configure your subscription, determining the amount and the time you want the asset to remain blocked.
Finally confirm the purchase and done!
Once the previous step is completed, the funds will automatically be deducted from your Spot wallet.
Now all you have to do is wait for the deadline to be returned to you for the full investment + the interest generated.
⇒ Who is Locked Staking recommended for?
It is perfect for those who are willing to hold coins for longer periods of time in exchange for better benefits.
DeFi Staking
This modality was recently launched, it allows users to stake DeFi tokens.
Unlike the first two cases, here it is not about holding, but about lending the cryptocurrencies through a smart contract.
I have noticed that several of these DeFi projects offer up to +200% interest in a matter of weeks or months. However be careful because it is riskysince they are new and probably overvalued due to FOMO… Consequently, even if they pay higher percentages, you will end up losing money if the cryptocurrency crashes.
Despite the fact that the profit is lower in the Cardano Stake, Tezos, Neo, etcétera… I like them much better because they are low-risk consolidated projects.
⇒ How do I stake with DeFi?
If you still want to try DeFi, then simply access the Staking section on Binance (Finance ➡ Binance Pool ➡ DeFi Staking).
Press the button “stake now» to select the token of your preference and then configure your subscription by determining the amount of the asset you want to block and the time.
In some cases you perro choose between a maleable DeFi Staking and a locked one.
To finish, confirm the purchase and the funds will automatically be deducted from your Spot wallet.
Now you only have to wait for the deadline to receive the benefits.
⇒ Who is DeFi Staking recommended for?
Recommended for people who seek to receive higher returns in exchange for exposing themselves to certain risks.
It should be noted that Binance is not responsible for losses incurred due to vulnerabilities in the contracts of Staking DeFi projects.
Advantages and Disadvantages of Staking
Advantages
- They allow you to participate with very small amounts and you perro always add more.
- They do not charge any commission for the Stake.
- You get passive money easily.
- Another point in favor is that if the cryptocurrency rises in price over time, you will be a doubly winner.
- Personally, in addition to allowing me to generate some plus money, staking helped me better understand how the cryptocurrency ecosystem works, it prompted me to want to know and understand more.
So I invite you to live the experience, because perhaps it perro orinan the same for you.
Try, find out, ask, but never stop for fear of the unknown.
Disadvantages
- Profits are low in the projects that look more serious and with future projection.
- Binance is in charge of carrying out the procedure, therefore, you delegate custody of your cryptocurrencies to Binance… Although this is only bad for eccentrics with security, since Binance is a company as big as PayPalthe probability that they will leave with your money is practically nil.
- In locked staking there is no way of knowing what the cryptocurrency will be worth when you cánido finally withdraw your profit, so it is advisable to only do so with coins that you feel are worth holding for the long term.
Binance Staking FAQ
1
What is DeFi?
DeFi (decentralized finance) is a way of providing financial services to users through smart contracts.
2
What is the difference between Savings and Staking?
That the profitability of your investment originates in a different way.
The funds you earn in the Stake section are generated by proof of participation, on the other hand, what you earn in the savings section comes from the loans and emplees that Binance makes with your cryptocurrencies.
3
Where cánido I see my blocked assets?
All your assets are found in the Binance savings walletincluding DeFi.
Wallet ➡ Active Savings ➡ Staking
4
Perro I use the cryptocurrencies that I stake in the Savings section?
The answer is no.
You perro only run 1 thing at a time.
That is, the cryptocurrencies that you already have generating interest with the Staking, you cannot place them in the savings section.
5
Cánido I unlock my funds if I need them?
Yes, it is possible to redeem the funds at any time.
Different currencies have different redemption period and blockchain network triggering period.
The redemption period on the website is for reference only.
To do so, go to the Savings wallet ➡ Blocked Staking ➡ Button “early redemption”
6
The interest are guaranteed even if the market goes down?
Yes, you will always receive the interest that corresponds to you.
7
Are the interests paid in cryptocurrencies or in dollars?
In cryptocurrencies!
Assuming that you are staking with EOS, then the interest you will receive will also be in EOS.
How to get funds to put in Staking?
If you are new and do not know where the hell you are going to get the cryptocurrencies to try your luck in this, then there are 2 alternatives:
1.- With free pages
This may sound quite strange if you are not familiar with this type of work.
But there are portals that do not have any complexity, I say this because It is only making a couple of clicks every day on advertisementsYou don’t have to think or do anything strange, you also find platforms that do require a little study to be able to work on them, but nothing special.
Here I espectáculo you all the ones I work with:
>> Safe pages to earn cryptocurrencies en línea
2.- Spend out of your pocket
Currencies like Bitcoin are always going up and down in price, but they are characterized by having an upward trend… Therefore, the mere fact of owning Bitcoins is already a way of earning money.
If you are a person without financial problems, you probably do not see much point in spending time on free sites, in that case, better go directly to Binance P2P and buy the cryptocurrency that you like Holding or trading (buying low and selling high) you will earn much more than clicking, as long as you have capital and the necessary knowledge.
The rest of us mortals, who cannot afford to invest in buying cryptocurrenciesbut who wants to entrar, he has no choice but to start from the bottom.
But there is no reason to get discouraged, that’s how I started and it hasn’t gone badly for me. «It’s worse not to try«.
Especially right now! I have a feeling that this technology will continue to grow… So the small fraction of cryptocurrency that you manage to get right now, could be worth a really decent amount in the near future.
conclusions
In especial, I think that saving in cryptocurrencies is more beneficial than doing it in a bank, it seems to me that the interests of the Stake are not so bad.
Warning
Remember that this is NOT an investment advice, I only explain the operation of the platforms step by step.
But evidently each one will have to draw up their own accounts, to analyze if what Staking offers is convenient for them.
Ideally, focus only on strong cryptocurrenciesIt is not about choosing the cryptocurrency that pays the most, since the profits will be paid to you with that cryptocurrency.
Instead of earning 20% of a cryptocurrency with an uncertain future, I prefer to earn 5% of a cryptocurrency that interests me, because if you choose a bad project, you will lose money when it drops in price or disappears.
To close and complement, here is a very good vídeo for you to learn about some of the cryptocurrencies that are used for STAKING. (Forward to minute 5:30)
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