If you’ve been in crypto for a while, then staking will be a familiar term. Staking is the way many Proof-of-Stake blockchains verify their transactions and allow participants to earn rewards on their crypto holdings. So, staking generally involves committing your crypto assets to support a blockchain network and confirm transactions.
Amongst other things, staking is an excellent way to earn passive income in crypto. Some cryptocurrencies offer a high-interest rate for staking. With the market still in the red zone, finding a way to earn some extra bucks could be helpful. Staking might seem a little tasking, but platforms like Binance have made the process pretty easy.
Here are some of the benefits of staking your crypto:
- It’s a simple method of generating interest in your cryptocurrency investments.
- Unlike crypto mining, crypto staking does not require any special equipment.
- You contribute to keeping the blockchain secure and functional.
- It’s more eco-friendly than mining.
The rewards earned are dependent on the amount of crypto you stake. So if you stake more crypto, you will get more rewards.
Does Binance Offer Staking?
Binance offers two kinds of staking services: locked staking and flexible staking. The Binance staking allows people to access DeFi services easily and securely. You do not have to go through the normal staking process on Binance. The process has already been simplified.
Flexible staking on Binance allows you to redeem your staked assets at any time of your choice. Moreover, Binance will return your asset to your Spot Wallet hours after you decide to redeem it. So, this staking option is suited for emergencies or immediate cash needs. But you earn less for that flexibility.
Locked staking means your asset will be staked for a specified time. Locked savings come with higher interest rates. However, you’ll have to lock your asset for the specified time. You can, however, choose to redeem your asset before the duration. But, you won’t receive any interest generated over your staking period. Binance will unlock your staked asset and return it to your Spot Wallet the next day.
How to do Flexible Staking on Binance
If you are considering flexibly using your crypto, then the Binance flexible staking is a perfect choice. As mentioned above, you can redeem your asset at your convenience. So here are the steps.
- Go to the Earn Page on your Binance home page
2. Click on “Savings” Here, you’ll see different options, such as BUSD and USDT, and you can choose your preferred coin. For this example, we’ll use BUSD.
3. Select the option best suited to you. For this example, we’ll use BUSD. Click on the “Subscribe” button. Afterwards, click on the “Subscribe” button to proceed.
4. Enter the amount you want to stake. You’ll see the APY and the estimated daily interest.
5. Agree to the terms and service agreement.
You’ll see an image confirming your status.
How to do Fixed Staking on Binance
As mentioned above, fixed staking involves you locking your asset for a specified period of time after which you receive interest. So, here are the steps:
- Go to the Earn page on your Binance homepage.
2. Click on “Locked staking”
3. Select the asset you want to lock. You’ll see different assets and their duration and interest rate. For this article, we’ll stake OM. It is important to note that your interest rate will change based on your duration. So, in the picture below, OM at 10 days has an interest rate of 48.67%. But it changed to a 27% rate during a 60-day duration.
4. Select the amount you want to stake.
5. Click confirm after agreeing to the service terms.
Advantages of Staking on Binance
Staking on Binance is straightforward. You don’t need to handle several private keys, make trades or perform complicated tasks to participate in staking. Binance has a one-stop service that allows you to get online rewards without maintaining an on-chain wallet.
Staking on Binance is also cost-effective and offers the highest return possible while maintaining the same risk level.
Is Staking on Binance Secure?
Staking, in general, comes with some form of risk. However, Binance staking offers some level of protection to help you combat possible risks. Here are some protections that Binance offers.
Slashing Risk: Binance ensures you get the same number of tokens you staked. However, the fiat value of your staked tokens might fluctuate.
Wallet Attacks and Scams: If you’ve been following the crypto space recently, you must have heard of several scam stories. However, Binance reduces the possibility of wallet attacks and scams for its users. The best part is that you do not need to stake or move funds manually. Instead, the crypto exchange will perform all these tasks for you.
Technical Risk: You can access over a hundred cryptocurrencies by using Binance. The trading platform has a one-click-to-stake feature that makes the process easy. You can also receive, remove, or reinvest your rewards without needing any enhanced knowledge.
Staking and saving on Binance has the benefit of broadening your options. You can evaluate each option available on the website and the level of risk they pose. Check out this article if you want to learn how to create an account with Binance.
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