Binance staking is a feature of this blockchain technology that allows you to earn rewards for staking a cryptocurrency for a specific time. So instead of idly holding your crypto in your wallet, you can monetize your holdings through staking in the Binance smart chain.
Staking your crypto in the Binance exchange requires minimal work since the exchange does the chunk of your work. The potential for high returns is the primary reason why Binance staking is extremely popular in Binance accepted countries apart from the US and UK, where it is not available.
Below is Binance staking explained and what to expect from the feature in 2022.
What is Binance Staking?
Binance staking is the process where you can lock your cryptocurrency for a fixed duration to earn rewards. It is a less resource-intensive alternative to mining (which Binance also offers with their Binance Mining Pool), and you will be able to stake the coins directly from your wallet.
On the Binance Smart Chain, there are no fees for staking your coins, and the platform does all the technical work. Staking rewards on the Binance platform is usually handed out at the beginning of every month.
Since Binance has several different types of coins on the platform, you can stake for varying APY percentages, according to the type of staking.
Types of crypto staking on Binance exchange
- Locked stacking
With locked staking, you can lock your crypto funds on the Binance platform for a certain amount of time and earn the interest according to the number of days.
Binance gives you the option to lock BNB, BTTC and other cryptos for 30, 60, 90, and 120 days for an APY ranging from 8% to 100.99%. For in-depth locked staking details on Binance, visit this link.
- DeFi staking
You can also do DeFi staking on Binance with different crypto, including BTC, BNB, USDT, DYDX, SXP etc. The duration in this type ranges from 30 and 60 days, but there are flexible lock options, and the estimated APY in DeFi staking ranges from 2.45% to 25.12%. View details of DeFi staking here.
- ETH staking
Unlike the locked and DeFi staking, Ethereum staking can be long-term if you choose. Interest rates on ETH staking depend on the number of stakes at a particular time. ETH staking on the Binance smart chain is converted to BETH or Beacon ETH. However, BETH has equal value as ETH, and it can also be swapped or sold out for ETH without losing its value.
- Binance Launchpad
Binance Launchpad is not strictly for staking, but the platform has several projects that allow you to stake from time to time and earn rewards. The available projects for staking on the Launchpad keep changing, so keep an eye out. The Binance Launchpad also pioneered the IEO or Initial Exchange Offering that allows crypto-startups to generate a certain amount of capital through an exchange.
- Binance vault
Staking on the Binance vault is exclusive to BNB, and the APY depends on the existing earning opportunities at the smart chain at the time of staking. Binance vault optimizes your funds to invest them in places such as launch pool for guaranteed yields.
All of these options 5 options are great if you want to make a passive income, however, if you want to take a more active approach to make an income online you could benefit from joining the Binance referral program and/or promoting the Binance referral code to your friends and network.
How Staking on Binance Work?
Binance staking works on Proof of Stake or PoS, which is similar to Binance mining which works on the Proof of Work or PoW. PoS is a protocol on the Binance blockchain that allows users to lock or stake the crypto funding and assigns them to validate the block at particular intervals.
The number of coins you lock up or stake is directly proportional to the probability of getting picked for block validation. So if you hold a higher number of staking coins, your chances of getting picked to validate the blockchain increase. This is unlike the PoW in Binance mining, where the first person that solves the puzzle gets to create the block.
Staking does not rely on specialized software like mining does but instead requires a direct investment of the cryptocurrency. PoS validators rely on the staked coins to maintain network security.
Is Binance Staking Safe?
Any type of cryptocurrency is inherently subject to risk, and the same applies to Binance and Binance staking. In addition, the higher the amount of APY, the higher the risks.
Having said that, Binance staking is as safe as any crypto staking on other blockchains.
The amount of reward you receive from Binance staking will depend on the type of staking, the duration and the APY associated with it. For instance, Locked Staking for BTTC for a duration of 90 days has an APY of 100.99%, which can give you handsome returns at the end of the term. Staking with early redeem duration will understandably have lower rewards.
Binance also frequently launches high-yield staking activities with up to 239.98 APY, so be sure to review the news on the platform. However, it is worth noting that APY for all types of staking on the Binance platform has a daily adjustment based on the on-chain staking rewards.
Binance calculates the staking rewards based on several factors, including the inflation rate, the number of coins in the holding, and how long the coins have been staked.
However, you can also use the Binance staking calculator that is available on third-party platforms if you are interested. This staking calculator on staking rewards is good and will show you how to calculate your Binance staking rewards.
You can manually input the crypto amount and the staking time to get an idea about Binance staking rewards. The results may differ from what you will receive on the Binance platform, but you will have an idea about your Binance staking rewards.
Most Binance staking activities have a life span of 15 days, while some resets every month. However, promo-staking activities have a different reset period, ranging from 1 day to several days.
If you have subscribed to any type of Binance staking on this blockchain, you can view the details through the following steps.
– Access your Binance account and go to your wallet
– Scroll to the “Earn,” and you can view your staking details.