We are currently in a bear market, everyone agrees on that by now. One way in which you might still be able to achieve returns in a bear market is by means of staking, for example via Binance. But what is this exactly?
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What is staking on Binance?
Staking your crypto means locking in your crypto to receive an additional return on it. Where this used to be very complicated, nowadays it is made very easy for you. You can do it today often just within the exchanges.
Also through Binance. This way you can keep your crypto within the exchange, and at the same time receive an extra return on it. But how do you do this? Let’s take a look at that!
How to stake op Binance?
Staking through Binance is very simple. First of all, you need to create an account at Binance. It is also smart to buy the crypto you want to stake in advance. When you have done this, you can follow the next steps:
At the top of your screen, you will see the menu bar. Move your mouse over the “Earn” menu.
A submenu will now open. In it, click on ‘stake’.
3. When you scroll down, you will see all the coins that are available for stake. Find the coin you want to stake.
3. Enter your stake term and click ‘Stake Now’.
Now fill in how much you want to stake, and click ‘Stake Now’ again.
Congratulations! You are now on stake. From now on you will receive an additional return, on top of the crypto you already own.
What coins can you stake on Binance?
Through Binance, you can stake a huge number of different cryptocurrencies. To be exact, you can stake 105 different coins and tokens through Binance. These range from large crypto currencies, to smaller coins or tokens. It’s too big a list to list them all. Some of the coins from the list that can be staked through Binance are:
How much can you earn by staking?
The rewards you can earn through Binance for staking depend entirely on which coin you stake, as well as how long you stake. The overview below shows the different stake rewards per coin. So these are also not all coins available through Binance, but some of them.
Binance Coin (BNB)
When will you receive stake rewards?
The staking rewards you receive at Binance are automatically paid into your spot wallet, or your regular Binance wallet. This happens 1 time per day. You can then also choose to add these rewards back to your stake, so that the rewards will be higher the next day.
Can you stake Bitcoin and Ethereum on Binance?
Both Bitcoin (BTC) and Ethereum (ETH) are unfortunately not available for stake through Binance. Fortunately, Binance also offers alternative ways to earn an additional (passive) return on your cryptocurrency. One of them, is ‘Crypto Savings’. In ‘Crypto Savings’, Bitcoin and Ethereum are available. In this way, you can still receive an additional return on your BTC and ETH. For Bitcoin you will receive a reward of 5% per year, where as for Ethereum you will receive a reward of 2.4%.
How are staking rates calculated on Binance?
Binance, actually like any other exchange, does not disclose anything about how they calculate stake rates. One thing to note is that you generally receive a lower return on larger coins than on smaller coins. However, this is not a rule and so it doesn’t always have to be the case.
What are the risks of going on stake on Binance?
Unfortunately, it’s not all rosy. There are also risks involved in staking via Binance. This is because you are securing your crypto, which makes you a lot less flexible with it.
If something suddenly happens, such as the abrupt fall of LUNA, you may not be able to act quickly enough. As a result, part of your profit may evaporate, or in an extreme case even your entire deposit.
So a stake is not really free money. All sorts of things can go wrong, as a result of which you can still lose your deposit.
Why should I stake on Binance?
Binance offers a way to earn passive income through crypto staking. Interests ranging from 1% to 10% can be earned by delegating crypto to your staking account. The percentage will depend on the cryptocurrency you want to stake and the chosen staking method.
There are two methods of staking in your Binance account, flexible staking and fixed staking;
Fixed staking is where you stake cryptocurrencies that are suitable for a certain period of time, and thereby contribute to the blockchain network of this certain crypto currency.
Within the fixed period it is not possible to trade or withdraw your staked crypto, however, the fixed staking rate gives a higher return than the flexible staking rate.
This is interesting if you’re a long term believer and don’t want to trade your crypto.
Also with flexible staking you earn interest by storing your crypto on your Binance staking account. You don’t have to lock them, which means you can trade or withdraw them at any time.
Because of this flexibility, the returns will be lower. When you withdraw or trade, the staking rewards will end.
If you are interested in staking and getting an extra return on your investment, please read our article on staking.
Stake used to be very complicated. Nowadays, it’s not. Most exchanges now offer stake, including Binance. Binance has a tremendously wide range when it comes to stake. In fact, you can stake 105 different cryptocurrencies through the exchange.
Unfortunately, it is not really free money. You can also lose your deposit. So always be aware of this!