As crypto assets become more widely accepted as an asset class, various decentralized applications or even cryptocurrency exchanges are offering services allowing you to earn interest on your cryptocurrency.
Binance, is one of the most widely used exchange in the world. Other than just allowing you to buy and sell cryptocurrencies, Binance offers a savings option for under Binance earn, where you can earn interest on your cryptocurrency.
Here’s how it looks:
Binance earn offers 5 different options for you to earn interest on your idle cryptocurrencies:
- Binance Flexible Savings – low interest rate, withdraw anytime
- Locked Staking – high interest rate, cryptocurrency locked for a period of time (15 days, 30 days, 45 days), your interest will be forfeited if you withdraw before maturity
- Launchpool – stake your tokens to earn tokens from new projects
- BNB Vault – stake your BNB and get all the rewards from flexible savings, locked staking and launchpool.
- Ethereum 2.0 Staking
The most commonly used Binance Earn is Binance Flexible Savings and Locked Staking.
Think of Binance Flexible Savings as your normal banking savings account. The interest rate offered on Binance Flexible savings is lower at 0.5% – 4% per annum. Interest is given to you everyday and you can withdraw from your Flexible Savings account instantly anytime without any withdrawal fee.
Here’s a look at the current rate offered on Binance Flexible Savings:
For locked staking, think of it as your normal banking fixed deposit account. The interest rate offered on Binance locked staking is higher at 10% – 30% per annum.
The common locked staking period is 15 days, 30 days and 45 days, and the longer you lock your cryptocurrency, the higher the interest rate you earn. Interest is given to you everyday.
You can withdraw your locked cryptocurrency anytime but if you withdraw it before the maturity date (earlier redemption), your interest earned will be forfeited.
Here’s a look at the current rate offered on Binance Locked Staking:
To start earning interest on your cryptocurrency, you can simply check whether your cryptocurrency is available for any Binance Earn products on your Binance wallet.
- Step 1: Go to your Binance Wallet
- Step 2: From the list of cryptocurency you own, if it is available for any Binance Earn products, you will be able to find an “Earn” feature next to it.
- Step 3: Select the Earn feature you want
In the image above, Sushi is available for both Locked Staking and Liquid Swap. You can select which product you want and just submit the request and it will be processed immediately.
You can also track all of your cryptocurrencies which are earning interest for you under the Earn Wallet of your Binance dashboard.
From the various rates shown above, you can see that cryptocurrencies can also earn you interest rate similar to what your banks are offering you.
In fact, cryptocurrencies are offering much higher interest rates as compared to what traditional banks can offer you, with shorter time frame, much flexible terms and no withdrawal fees. The interest rates are also fixed and locked in the minute you select the savings product.
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