Binance Staking 101: How To Stake On Binance
Binance has become the most popular cryptocurrency exchange all over the world.
There are thousands of coins, tokens, and assets that users can buy, trade, sell, acquire and hold at their will.
The Binance team is constantly providing new features to their users, which is why investing your money in a crypto process is easier than ever before.
One of the ways in which you can earn interest in the medium and long term is by crypto staking.
Binance offers the possibility of getting crypto funds staked, which is something that many users will indeed appreciate.
If you want to earn a nice interest rate just by holding coins on the Binance exchange, then staking is for you.
Keep on reading to get more information about:
- What is Binance Staking?;
- Things you need to know before starting a staking process on Binance;
- How to properly get assets and coins staked in Binance exchange.
How Does Staking Work on Binance?
Holding funds help POS tokens, which work thanks to the Proof-of-Stake protocol, to validate transactions across the different blockchains.
That being said, the different staking options, such as staking VET, users staked NEO-GAS, and other POS tokens, contribute to maintaining and validating the transactions of a project or product period.
As a consequence, users can redeem Staking interest, which is shown as rewards that are automatically transferred into their cryptocurrency wallet.
Note: Staking isn’t always risk-free. There are high risks when it comes to investing funds in any kind of asset.
Spot wallets are where you store your coins in Binance.
Instead of using a spot wallet, we recommend choosing a cold storage device that isn’t connected to the internet.
Available Staking Options in Binance
Now, it’s time to see the crypto assets that you can stake in your spot account.
You definitely earn interest rate in this exchange, but the rewards will change depending on many factors.
Binance DeFi Staking
Decentralized Finance projects that work through smart contracts can be staked on Binance.
It’s worth noting that DeFi projects are not always as steady as someone would think, so think carefully before you decide to advance with DeFi Staking.
Locked Staking
Locked Staking allows you to hold certain assets for a fixed period of time.
Locked staking is confirmed only at the end of the corresponding product period.
This redemption period can vary from a couple of days up to three months, so be sure to check this before choosing these kinds of staking rewards.
ETH 2 Blockchain Network Staking
The Ethereum blockchain needs to continue growing, and one of the ways that crypto users can contribute to this cause is by staking ETH2.
As it happens with Coinbase Staking, staking ETH provides a good interest rate in the medium haul for holders.
How to Perform Binance Staking
Now that you know the options that Binance offers, it’s time to learn how to stake coins in the platform.
The Stake Process is elementary, but you need to do your own research before starting.
Step 1: Log In to Your Binance Account
First, log in to your Binance profile as you usually do.
You can do so both on the mobile app and the desktop platform.
Step 2: Go to “Binance Earn”
Find the Binance Earn option and click on it. K
eep in mind that if you want to buy crypto in Binance, you need to add a payment method.
Thus, completing Binance KYC Verification is a must.
Users who haven’t verified their accounts won’t be able to get assets locked on the platform, so this step can’t be avoided.
Step 3: Choose The Staking Period, Coin, and Terms
Do you want to earn rewards on a daily basis, or do you prefer to wait for a while? At this point, it’s fundamental to choose the type of staking you want to follow.
The interest payout time varies depending on this, so be sure to check Binance FAQs rewarding all different Stake Processes before moving on.
Step 4: Agree Binance’s Staking Terms and Conditions
All the information related to the Stake Process will be shown on the screen.
Once you have chosen the amount of crypto and other details, you need to click on confirm to get the coins locked.
Step 5: Earn Rewards!
The interest you gain will depend on the type of stake you choose.
You’ll earn rewards for sure, and they’ll go directly to your wallet.
But, how do these rewards work?
Claim Your Staking Rewards on Binance
The interest calculation period on Locked Staking varies depending on your election.
You can get the rewards the day after Locked Staking, but this depends on many factors.
For instance, choosing early redemption might cause you to earn little rewards - you better be patient!
On the other hand, DeFi Staking offers rewards the next day you get your funds staked.
Of course, you need to wait for a certain period that might change depending on the different global time zones, but DeFis are way more flexible with these terms.
Finally, the distributed interest earned by ETH2 staking can only be witnessed in long-term situations.
Since the assets are locked, you won’t be able to use them (and neither receive rewards) until all phases are completed.
And that’s all you need to know about staking on Binance!
It’s time to start earning precious rewards, so start your own research and do it!
Binance Staking FAQ
What is BNB Vault?
The Binance Coin (BNB) Vault is a way to earn more rewards by staking BNB, Binance’s official coin.
To learn more about it, go to Binance’s Official Website.
Are There Fees for Crypto Staking in Binance?
There are no fees for staking coins in Binance! This is one of the reasons why many users choose this exchange as their favorite option for staking.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.