October 29, 2020

Staking cryptocurrencies on the Binance exchange - types and conditions

Staking cryptocurrencies on the Binance exchange - types and conditions

Cryptocurrencies are assets, and they should not lie dead waiting for the next rise in the rate. To get income selling virtual coins at allnot necessary. You just need to activate Binance Staking at https://www.binance.com/. What it is and how you can make money here, we will now tell you. But, first, a little history.

Back in 2012, the first crypto coin was createdPeercoin using a hybrid POW / POS consensus algorithm. Together with the miners, the network was maintained by trusted nodes, which were gradually supposed to completely replace the owners of computing power.

It is with the Proof of Stake concept(proof of ownership) is closely related to earnings from staking. To start a trusted node and make money on processing transactions and creating new blocks, you need to freeze a certain amount of cryptocoins. If you have a desire, but you don't have enough money, you can turn to other network members. But, of course, no one will lend just like that, you will need to give a part of the profit.

In different blockchains, the method of assigning validatorsmay differ. Sometimes users directly vote for a specific participant, delegating their coins to him, and sometimes they join a staking pool or have to run a full node themselves.

In any case, the staking principle remainsunchanged - you freeze coins and receive interest income. And for this it is not at all necessary to have a personal wallet. Register at https://www.binance.com and start staking directly from the deposit... The exchange has a very good security systemwhen selecting projects and will not offer you staking of a hopeless blockchain, the coins of which will depreciate faster than you have time to get your interest.

Binance staking conditions

Receive passive income on the Binance crypto exchangecan every registered user. The only condition is the presence of this cryptocurrency on a personal deposit. The launch of staking does not mean that the coins become unavailable for other operations.

Staking cryptocurrencies on the Binance exchange - types and conditions

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You can sell or withdraw all or part of the amounttheir assets at any time. But, at the same time, staking payments will completely stop or decrease in direct proportion to the number of altcoins withdrawn. The basis for recalculation is the fact that the order has been issued. That is, coins frozen on a limit or stop-limit order no longer participate in staking.

Types of staking on Binance

As for the terms, the client can choose between fixed, indefinite and defi staking. We will tell you in more detail about each type.

Fixed staking

Staking cryptocurrencies on the Binance exchange - types and conditions

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Locked staking has an exact final completion date whichclient installs when assets are frozen. That is, the fixed staking agreement expires 7,30,60 or 90 days after launch. The minimum unlocking period is usually a day, with the exception of the BAND cryptocurrency, which has an Unlock Period of 7 days.

Coin Minimum deposit Income
(% year.)
Freezing period
(days)
Minimum unlocking period (days)
Eos 10 6.79 60; 90 1
BAND 20 12.5 7; 30; 60 7
Dash 1 7.12 7; 30; 60; 90 1
GXS 100 4.53 7; 30; 60; 90 1
ONE 1000 16 30; 60 1

The minimum unlocking period is the period after which the accrual of interest on the staked deposit begins. If the client stops staking early, they will not receive any income.

Perpetual staking

Staking cryptocurrencies on the Binance exchange - types and conditions

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Flexible staking does not have a fixed end date, i.e.interest is charged until the client issues a sell order or withdraws the cryptocurrency from the exchange. Money begins to drip one day after the start of staking and is paid every 30 days.

Staking cryptocurrencies on the Binance exchange - types and conditions

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This method is convenient because your coins simply lie on the spot wallet, within 30 days you receive rewards for storing coins.

The amount of income and the minimum amount of funds depends on the coin. Binance staking of 25 altcoins is supported. See the full list here.

Defi staking

Staking cryptocurrencies on the Binance exchange - types and conditions

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DeFi (decentralized finance) is the wayproviding financial services to users through smart contracts. Existing DeFi projects aim to provide higher annual returns for certain currencies. To connect defi staking to binance, you do not need to buy tokens from one of the decentralized lending projects. Assets fit:

  • BNB;
  • USDT;
  • BUSD;
  • DAI.

The exchange itself will invest them in a profitable project. There is a relatively high threshold for users of DeFi products. Binance DeFi staking acts on behalf of users to participate in certain DeFi products, receives and distributes realized profits, and helps users engage in decentralized lending with a click.

Staking cryptocurrencies on the Binance exchange - types and conditions

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Open defi staking under “Finance"And click"Stake now". Binance selects only the best DeFi projects in the industry and monitors system performance in real time to mitigate the risks associated with such projects. Binance clients get rid of exorbitant fees. With the lowest level of risk, users can get the highest possible return in the best possible way.

How to top up a deposit?

The client can transfer one of the coins available for staking from an external wallet. The deposit address is available in the section "Spot wallet". And also any of the coins can be bought on the exchange for fiat (rubles, dollars, euros) or another crypt.

Staking cryptocurrencies on the Binance exchange - types and conditions

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You can replenish your account in rubles from a bank card or through the Advcash service with a 0% commission. You can view the list of trading pairs in the spot wallet by clicking the button “Trade"In the line of the coin you need. Almost any staking coin can be bought with bitcoin or the internal BNB token.

How do I transfer funds back to my account?

Staking cryptocurrencies on the Binance exchange - types and conditions

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To terminate a fixed deposit ahead of schedule, you need to open the section "Assets on deposits», Select Locked Staking or Defi Staking and press the early repayment button.

If unlimited staking is activated, then coins are available to you all the time and you can trade or withdraw them at any time.

Benefits of staking on Binance

It is beneficial to receive passive income for storing cryptocoins on the binance exchange for several reasons:

  • It's simple and convenient. No need to create a separate wallet and choose a trusted node.
  • Liquidity is not lost. Coins can be sold at any time, there are no blocking periods or penalties.
  • Entry threshold is minimal, which is especially important with a defi deposit.
  • No commissions, the administration provides bonuses for staking on the platform.

It is enough for the client to hold at least a daycoins after activating staking, and he will receive a reward. This is possible only on Binance, by starting staking on the wallet, you need to leave your assets for a whole month.

If the holder did not have time to stop the process in time andwithdraw money, staking will be restarted and he will receive only legal interest. Well, what if it is during this period that the coin will rise in price sharply, and then fall, and the chance to conclude a profitable deal will be missed. This will not happen on binance.

Conclusion

Tell me what is more profitable just to keepcryptocurrency on the wallet or receive interest, without losing the opportunity to sell it at any time. I think the answer is obvious and Binance provides such an option.

The exchange team is working to increase income forstaking while maintaining the best security in the industry. And if you have not yet registered on this service, we recommend that you do it right now, the official website of the Binance exchange is https://www.binance.com.

Staking cryptocurrencies on the Binance exchange - types and conditions

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