How to stake with Binance?
By Inkarias - 2020-03-19
What is Binance?
Binance is a cryptocurrency exchange platform launched on July 14, 2017. It quickly established itself as a leader in the crypto sphere that allows smooth trading between various crypto assets. The Binance Coin (BNB) is a token created by this exchange which allows investors to benefit from discounts on transaction costs. This system is planned to be effective until July 14, 2021. After that date, BNB no longer offers any reduction in transaction costs (except for VIPs). Even if BNB native tokens don’t serve in the Staking services, the easy access to a famous and secure exchange incentives stakers to use Binance services while developing a passive income.
In September 2019, Binance core team officially launched the staking operations supporting 8 initial assets: EOS, ONT, VET, XLM, KMD, ALGO, QTUM, and STRAT. With Binance Staking platform, investors can earn staking rewards without needing to set up nodes, worry about minimum staking amounts, time lengths, or any other parameters. Furthermore, Binance users are able to grow their funds by receiving monthly rewards and distributions simply by depositing and holding funds on Binance. User balances is derived by taking hourly snapshots to calculate a final snapshot for each day instead of taking a single daily snapshot at a specific time, for the fairest distribution of rewards to all users.
Binance Advantages to benefit for future stakingLaunchpad: Binance has fostered the nascent IEO (Initial Exchange Offering) movement by introducing Launchpad, its platform for incubating and hosting IEOs. Previously, investors had to do their own diligent research about ICOs before going through the difficulties of investing in them. With Launchpad, investors still need to perform their own research, but they can rest assured that Binance has already vetted the projects ahead of time. Because Launchpad is an elegantly designed platform for investing, the level of making new investments has raised significantly since the ICO days.Binance Lending: Binance Lending allows users to earn a significant amount of guaranteed interest on their crypto holdings without having to expose themselves to any risk. The platform offers two types of deposits, fixed and flexible with around 7 available pairs. The interest amount is calculated and distributed daily based on the available flexible deposit assets. At the opposite, fixed deposits are a term-fixed contract that runs for a certain period of time that reward participants with a predefined percentage depending on the shares.To learn more about Binance Lending click hereStandard trading: The crypto exchange seeks to cater to all levels of investors by providing both a Basic and Advanced trade setup with few hundreds different coins offered. If an investor wants immediate access to new coins for staking, he will have access to hundreds or thousands of crypto trading pairs to make his choice. Trading fees are low and even cheaper with Binance coin (BNB). As a centralized exchange, though, Binance is still vulnerable to security breaches.Margin trading: Although the margin trading feature allows investors to make leveraged trades as usually done by other competitors such as PrimeXBT or Bitmex. However, Margin trading is only limited to some currencies and limited with some rules and specifications. More details can be found on the official FAQ.A infinite scalability: Binance users have come to understand that unless the downtime is planned, there is virtually no disruption of the service at any point. Even when BTC is experiencing a day of $40+ billion in trading volume, the exchange ensures all operations safely and smoothly. That’s probably got something to do with the exchange’s ability to support 1,400,000+ transactions per second. A decentralized exchange: Binance is avoiding security breaches and issues with its own official Decentralized Exchange (DEX). Binance DEX runs on its own blockchain, Binance Chain blockchain, and uses the Binance coin (BNB). Decentralized exchanges do not hold customer funds or information, the main targets of hackers. Instead funds are held by the wallets of the individual traders. The Binance DEX launch is one of the most watched launches in crypto exchange history. Binance has the trading volume to build liquidity, which has been the main weakness of other DEXs. The DEX will remain crypto-to-crypto and thus outside the purview of regulators. Therefore in the future, if tokens are added to staking services , the DEX will serves as the main gateway for investors to get new possibilities to build a passive income.
How to stake on Binance?The first step to do in order to use Binance staking services is to have an account registered and preferably already funded. If you already have one, you can directly login into the platform to discover its staking services at https://www.binance.com/en/staking. Otherwise, you can now create your own new account with Binance by using this link: https://www.binance.com/en/register (or use our refferal link to support us>> click here<). Binance interface is quite simple and directly presents all the coins supported on the platform:
By clicking on the “My Rewards” button, investors can consult at any moment their previous rewards displayed with basic information such as the distribution date, the amount and the name of the coin.
Deposit and Buy functions
By clicking on the “Deposit” button, investors are automatically redirected to the exchange deposit page to add funds. The staking balance is directly tied and associated with the balance held in the main exchange account. However, there is a 24-hour wait period before balances are accounted for during daily snapshots, to deter manipulation of balances within seconds of snapshot times.
Finally, the “Buy” button allows investor to enter the Binance market and the different listed pairs in order to buy the desired coin. The example below shows the EOS buy button and the various possible pairs to buy some:
Binance is currently not charging any fees for the utilization of the staking service. Binance vision is focused on user experience by helping users to earn the most rewards from the daily allocations.To join Binance staking services, you can visit the official address at https://www.binance.com/en/staking