Binance Staking Tutorial | Beginner’s Guide

In this article, we will go through and see how we can stake cryptos Binance. Which coins are supported, the pros & cons, and the risks you should know before investing your coins in these services.

Binance is the world’s biggest bitcoin exchange and altcoin crypto exchange in the world by volume. Binance provides a crypto wallet for traders to store their electronic funds.

To get started, sign up in your account or if you don’t have one you can use the button below and start an account.

BINANCE EARNINGS

BINANCE EARNINGS

Once you are logged on, in the top menu, go to Finance / Binance Earn. This is where all the staking products are listed and some other services as well.

BINANCE EARNINGS

All you do here is that you give them your coins for a period and at the end of it, you will take back your coins plus the rewards. This reward will be given to you as an estimated annual percentage yield (EST. APY). You can use this to compare the yields for different coins or different staking products. Looks almost like putting your money in a term account in a bank, and earning through interest.

In Binance there are some time duration options that we can choose from. So, for example, for the Chromia (CHR) coin there are 15, 30, 60, 90 days duration. Which is of time that your coins are locked.

So if you stake your coins you can’t withdraw, trade or transfer them. So, this might be a good option only if you don’t need to take any action on your coins for a specific time.

BINANCE LOCKED STAKING

Here, all they do is locking your coins into a crypto wallet and support proof of stake blockchain.

There are some occasions here that you can redeem your cryptos earlier, but you have to take into consideration the penalties that will be applied. In most cases, you can get your coins back, but you won’t earn interest from the days passed.

Another thing that you might take into consideration is your coins might fluctuate during the period they are locked, and lose some good opportunities to earn much more than the interest.

Also, worth mentioning is that if you choose the 90 days staking period, most of them will be sold out. So other people have overused these options and aren’t available at the moment.

BINANCE ETHEREUM STAKING 2.0

BINANCE ETHEREUM STAKING 2.0

Ethereum used to be a proof of work blockchain. Now they are upgrading it to a proof of stake blockchain.

The risk here is that it will take a long time to switch to Ethereum 2.0. If you want to put some Ethereum for staking, you need to take into consideration that these might be locked up over 2 years.

But the good thing is that Binance tokenizes Ethereum, calling it BETH (Binance Ethereum). Ethereum will give you BETH coins with a 1:1 ratio, and you can take any action with those like you would do with Ethereum.

BINANCE ETHEREUM STAKING 2.0

To stake you Ethereum, just click ‘Stake Non’, put the number of coins you want to stake, and press ‘Confirm’. If you stake 500 Ethereum, you will get 500 BETH into your Binance account.

The biggest downside of staking Ethereum isn’t the long waiting time. But is that you don’t know what the APY is going to be when you get your coins back. Because it will depend on the number of people that are going to stake Ethereum as well. The more people are going to stake, the lower the interest will become because they will split the rewards into more people. For example: if there are 500,000 people staking ETH, the average percentage yield will be around 21% which is outstanding and if the number is increased to 10,000,000 the average percentage yield will be around 5%.

BINANCE Defi STAKING

BINANCE DeFi STAKING

Defi stands for decentralizing finance. Most of the staking here is done on the Ethereum blockchain, and most people use it to trade different products.

This is another service offered by Binance and what it is doing here is that is investing these coins in other projects on blockchain. Which wants to come up with a decentralized app.

By pressing ‘Stake Now’ this window will pop up. Here you can choose the number of coins you want to stake. Down below, there is a minimum and a maximum amount.

BINANCE SUPPORTED COINS

Binance supports over 50 cryptocurrencies, including some of the most popular ones, such as

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • PAX Gold (PAXG)
  • Harmony (ONE)
  • Orchid (OXT)
  • Helium (HNT)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Stellar (XLM)
  • Tether (USDT)

In Binance you can find many trading pairs as well. So that you can trade two cryptocurrencies without the need to cash out one for USD, for example.

For more information on Binance, check out my other articles by clicking here.

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