What is Binane Staking? 5 parameters to note when Staking on Binance
What is Binance Staking? Should Staking on Binance? Learn all you need to know before staking Binance here!
Staking is a popular practice for those who intend to hold assets in the long term. To meet this demand, in September 2019, Binance launched the Staking feature in the Binance Staking section.
Over time, Binance Staking has improved to become more diverse. This article will provide you with everything you need to know about Binance Staking and guide you on how to staking on Binance to get the best profit!
What is Binance Staking?
Binance Staking is a coin staking service provided by Binance exchange. Previously, this feature was made a section in Binance, and now, Staking has become a small part of the Binance Earn section.
At Binance Staking, users can Stake some of the coins listed in the Binance system to receive rewards. This is quite simple and is similar to when you Staking coins. The only difference is that instead of Staking yourself, here you send it to Binance so they can stand on behalf of you Staking.
This form is similar to the Staking services that some other wallets or exchanges are providing such as Cobo wallet, KuCoin Soft Staking, Crypto.com Wallet, Trust Wallet, Stake with us, Stake fish…
How many forms of Staking are there on Binance?
Currently, there are many different forms of Staking, including:
- Savings: Staking has no term, but the return is low.
- Locked Staking: Staking has a specific term, higher profits.
- Launchpool: Stake Crypto to get new project tokens.
- BNB Vault: Combine Savings, DeFi Staking and Launchpool for the best APY.
- ETH 2.0 Staking: Join Staking for ETH 2.0.
Staking forms are available on Binance
In which, the most popular are probably the first two forms, which are Savings and Locked Staking.
Should Staking on Binance?
Here are the advantages and disadvantages of Staking on Binance that you may be interested in before deciding whether to Staking:
- Users can participate in Staking with a small amount of coins that if Staking alone is not eligible.
- Users without in-depth knowledge of Staking, setting up or installing nodes can participate.
- Binance does not charge any staking service fees. All rewards are divided back to Staking people.
- Can Unstake at any time.
- Suitable for long-term holding users.
- Although you can Unstake at any time, you cannot receive the property immediately and have to wait for a while.
- Unstaking before maturity (in Locked Staking) will result in the loss of all profits, leaving only the original asset.
- Staking will lock assets, thus putting you in a difficult situation when you cannot actively buy and sell when the market fluctuates.
Staking will lock assets, thus putting you in a difficult situation when you cannot actively buy and sell when the market fluctuates.
Step 1: Login to Binance, in case you do not have an account, you can view detailed Binance instructions
Step 2: At the homepage, in the Finance section, select Binance Earn.
Step 3: Choose the form of Staking that suits your needs in the above 5 items including: Savings, Locked Staking, Launchpool, BNB Vault and ETH 2.0 Staking.
Here I will illustrate the Locked Staking item, the other items will do the same but without the date selection.
Step 4: Start Staking by selecting “Stake Now”.
To cancel Staking, go to Earn on Binance, then click Redeem. All rewards received will be forfeited, and will wait a few days for the asset to be fully paid back.
5 parameters to pay attention to when Staking on Binance
Some highlights in Locked Staking
Before performing Staking, you need to note the following 5 parameters:
- 1 – Token: Find if you support the assets you need to Stake?
- 2 – Est. APY: Is that APY suitable?
- 3 – Duration: Choose a suitable number of days, the larger the number of lock days, the higher the APY.
- 4 – Minimum Locked Amount: Check if the amount of Stake meets the minimum amount?
- 5 Check if it is still possible to Stake at that number of lock days?
Compare Staking on Binance with other platforms
Compared to other exchanges, Staking on Binance is not too outstanding, because Staking is no longer a breakthrough feature, creating a competitive difference with competitors.
Therefore, perhaps the thing to be concerned about here is the asset you want to Staking more than the exchange, because maybe Binance does not support staking this asset, but other exchanges like AscendEX or Kucoin do.
Compared to staking directly on the project, I consider it a trade-off. That is, if you Staking on Binance, it can be convenient to sell or buy more if there is not enough quantity. But in return, there are no other benefits, for example, Stake in the project can receive NFT, or a certain reward, etc.
Direct Staking on the exchange is not new, because the exchange is the place where the most traders operate, and the amount of coins participating in circulation above will also be the largest.
This way will be a win-win step for both the exchange (available for customers who are available traders) and users (who are willing to participate in Staking coins to increase profits). Along with Lending, Staking is the passive earning trend in Crypto that exchanges have recently launched.
Above is a detailed article about Staking on Binance and how to participate. Hope you have understood the information and have a Staking option that suits your needs.
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