The largest crypto exchange in the world, Binance offers its users many interesting features that allow them to earn crypto without actually having to trade. One of these features is the staking program that includes several different ways to invest your tokens for a considerable profit. In this article, we review that program, talk a little bit about how staking works, and explain how you can use it to earn.
What is staking
Basically, staking means locking some of your coins for a certain period of time in exchange for profits in the form of additional tokens. Think of it as a way to invest your cryptocurrency at interest that helps you earn without actually doing anything. However, staking is not risk-free: if the market price of those locked tokens plummets, you’ll have to watch their value diminish while not being able to sell them. So you should not stake your coins carelessly, even if the potential yield is huge.
One of the most important things to consider is the reliability of the platform you use for staking. That’s why many people on the market prefer reputable and well-known exchanges, especially Binance. This exchange has very attractive staking options for more than 100 various cryptocurrencies, and you can earn up to 100% per annum with some of them. The supported tokens include SOL, ADA, BNB, and a variety of others, more or less well-known. You’ll be able to regulate the staking duration from 21 days to almost 4 months with the Binance staking program, so choose wisely.
Staking options on Binance
Binance features two different mechanisms of staking. Locked staking is your usual staking: you hand over a certain amount of crypto to the exchange, wait a little bit, and then those funds return back with some additional reward. You can withdraw them before the staking period expires, but that will bring a penalty. DeFi staking is another mechanism of staking provided by the exchange. It allows you to give your tokens directly to DeFi projects, offering them additional liquidity in exchange for more coins. The main difference is that here you may redeem your stake any time you want.
How to start staking
Staking is very easy with Binance. Just create an account, find the Staking option in the Earn tab, and select the token you’d like to stake. Choose the desired duration and click on the Stake Now button. If you want to reinvest your coins once they are free, you can check the Auto-Staking option.
More interesting research in the account of the author Ivan Andriyenko.