Safest Way to Generate Passive Income
If you are looking for a safest place to make cool income then this is absolutely for you. Binance staking is the safest way for you to earn and continue to earn passive income on a daily basis even when you are sleeping. I have been using this Binance product (Binance Earn) for a very long time and, trust me, it is worth recommending.
In this article, I will discuss about:
- Staking
- PoS (Proof of Stake) Staking
- DeFi Staking
- Benefits and Risks Associated with Staking
- How Binance Staking Helps; and
- Other Binance Staking Features
STAKING
Binance staking is gaining product on binance with which you can stake and earn passive income continuously on a daily basis using cryptocurrencies you are holding. There are multiple places you can deposit your coins and begin staking to earn rewards. However, the most common ways are through a network is consensus mechanism or a DeFi protocol.
Let me talk about kinds of staking in brief:
- Flexible Savings: Flexible Savings is the kind of staking on Binance that allows you to earn interest by staking cryptocurrency you are holding. It’s really easy to use and gives you good flexibility. You can stake your asset, earn interest, and redeem them at any time you choose to do so.
Click here to see a comprehensive graphical representations on how to stake using Flexible Savings step-by-step
- Locked Staking: This kind of staking, just as the name implies, allows you to lock your asset and earn interest within a specific (Locking) period of time and get access to your (staked) assets only when the locking period is over. The difference here is that you’ll set a predetermined duration for your funds to accrue interest. Why is this better? Well, this will generally give you higher interest rates than Flexible Savings products since the term and interest rate are both fixed. Locked Savings products can range from 7 to 90 days. So, if you know you won’t need some funds elsewhere for a certain period of time, you can lock them to earn at a higher interest rate.
Click here to see a comprehensive graphical representations on how to stake using Locked Staking step-by-step
- Auto-Invest: This is a Binance Earn’s feature which allows you to automate your investment and earn passive income as well. It is a dollar-cost averaging (DCA) investment strategy. You can choose the cryptocurrencies you want to purchase on a daily, weekly, bi-weekly, or monthly basis.Your purchased BNB will be automatically deposited into BNB Vault, and the other crypto purchased will be deposited to your Flexible Savings account, so you can earn passive income with your investments.
Click here to see a comprehensive graphical representations on how to stake using Auto-Invest step-by-step
- Liquidity Farming: This is a liquidity pool developed based on the AMM (Automatic Market Maker) principle. It consists of different liquidity pools, and each liquidity pool contains two digital tokens just like any other DeFi swap. In this case, You can easily provide liquidity in the pools to become a liquidity provider and earn transaction fees and BNB rewards. You can also swap two digital tokens in the liquidity pools easily.
Click here to see more details on Liquidity Farming and how to use it.
- Dual Investment: This is a kind of nifty way to earn some side income no matter which direction the price goes. It allows you to optimize yield on your savings while minimizing price risk. This only works for you if you deposit a cryptocurrency, you will earn a return based on two assets. In this case, you commit your holdings, lock in a yield, but earn more if the value of your holdings increases during their locking period respectively.
Click here to see more details on Dual Investment and how to use them.
Now, you may think of staking as a less resource-intensive alternative to mining. It involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply take staking is the act of locking cryptocurrencies to receive rewards.
In most cases, you will be able to stake your coins directly from your crypto wallet, such as Trust Wallet. On the other hand, many exchanges offer staking services to their users. Binance Staking lets you earn rewards in an utterly simple way; all you have to do is hold your coins on the exchange.
To get a better grasp of what staking is, you’ will first need to understand how Proof of Stake (PoS) works.
POS (PROOF OF STAKE) STAKING
This is just like Bitcoin’s Proof of Work (PoW) consensus mechanism as Proof of Stake (PoS) is also a less resource-intensive that stands to be an alternative to Bitcoin’s Proof of Work . Here, users deposit their crypto assets in a smart contract to perform various network functions (such as validating transactions). In return, they receive staking rewards. The stake incentivizes the maintenance of the network’s security through ownership.
DeFi STAKING
This allows you to stake your coins in return for rewards as well as other forms of staking. Here, the user could stake their coins in a liquidity pool to provide liquidity, or stake in a protocol’s reward pool. DeFi staking offers a huge range of opportunities depending on your risk tolerance.
Click here to see more about DeFi Staking and how to use them.
BENEFITS AND RISKS ASSOCIATED WITH STAKING
It is absolutely certain that while earning interest on your crypto holdings is
incredibly attractive, you should not forget that there are risks involved. Just like in any investment, if you understand these risks, it will help you make more informed decisions on how you stake your tokens and coins.
These Associated Risks Include:
1. Slashing: Commonly, this is a risk on PoS blockchains. It happens when a PoS blockchain validator fails to validate properly, both the validator and the delegators could easily lose part of their staked tokens or rewards. This is the case if the validator has downtime or double signs on the network in particular.
2. Malicious attacks : This involves wallet attacks and scams which are common in the decentralized space. It happens when a users stakes their tokens themselves without understanding the risk of dealing with external wallets, platforms, and actors. Every user should understand this risk.
3. Technical requirements: It is clearly known that some blockchains have complicated technical requirements for those who want to stake in their consensus mechanisms. This happens when you incorrectly set up your wallet and it may lead to a loss of assets due to improper configuration.
4. Unsustainable tokenomics: Every user is essentially advised to carefully investigate tokenomic models and also understand that their fiat-value returns can vary with the market. This is because of the fact that token values can easily and greatly fluctuate and can be subjected to a high market risk. Some or all of your investment may be lost.
HOW BINANCE STAKING HELPS
In order to help combat some of these risks, Binance staking offers some protections to users. However, there will always be risks associated with any form of staking, even through Binance.
- For Slashing Risk: Binance Staking takes on all slashing risks for users. This promise means that the same amount of tokens that a user staked will be returned to them. However, the fiat value of the staked tokens may fluctuate, and you may have no recourse for any losses.
- For Wallet ‘s Malicious Attacks and Scams: Binance users reduce their risk significantly of wallet attacks, scams, or theft when operating through a centralized exchange like Binance. Without needing to move funds yourself or manually stake, you can let Binance perform these tasks for you.
- For Technical Risk: Binance Staking provides simple, one-click-to-stake functionality for 100+ cryptocurrencies. You can also quickly receive, remove, or reinvest your staking rewards without any complex technical knowledge.
OTHER BINANCE STAKING FEATURES
Auto-Staking
Just like I explained earlier, Binance Staking has this feature which allows users to automatically add their digital assets/digital currencies to the staking pool again at the end of the staking period. Users may enable the Auto-Staking feature before the Interest End Date by clicking Wallets > Earn > Locked Staking > Auto-Staking.
Beyond Holding
Users can use Binance beyond just holding and trading; instead of holding crypto doing nothing or trading only, you can make your assets work to earn a passive income for you using this Binance Earn Product.
While Binance cannot remove all the risks associated with staking, there are several tangible benefits if you choose to stake through our platform. As always, you can significantly reduce your overall risk by making more informed investment decisions.
This brings us to the end of this article; in the end, I hope you are now familiar with this gaining product of Binance with which you can safely generate passive income continuously on a daily basis even when you are sleeping.
Click here to Stake on Binance Locked staking and enable auto staking right now:
Not yet on Binance? Click here to easily sign up now and enjoy $300 Sign Up package by completing some little tasks on Binance.
Thank you,
Altaaf The Binancian.
