Stake your way to profits with Binance Earn

If you’re yet to enter the staking world of Crypto, you could be missing out on a solid source of some extra income. And yeah passively. Binance Earn is the platform giving you the golden opportunity to stake your coins and earn interest. And Binance being the largest cryptocurrency exchange; does it get any better than that?

If you happen to be a hoDLer, you could use some handsome APY on your coins through staking rather than simply holding them in a crypto wallet. Sounds awesome, right?

Just what is Staking?

First and foremost staking isn’t just a word that can be boxed into one definition. Staking by itself can be practiced in many places. The usual ways are to stake through a network’s consensus mechanism or a Defi protocol.

Proof of Stake and Defi Staking

Proof of Stake is a consensus mechanism defined by its less-resource intensive characteristic unlike the Proof of Work mechanism. Proof of Stake essentially involves locking your crypto assets in a wallet to aid in the Blockchains’ operations and in return, users are rewarded with staking rewards.

Defi Staking is a peer-to-peer financial model on a blockchain, that lets users stake their coins and earn rewards. Essentially, users are providing liquidity to a liquidity pool and are rewarded with additional returns. Defi staking is slowly gaining popularity with its diverse range of opportunities.

Risks and Benefits associated with Staking

As much as staking can be quite a lucrative venture, it comes with some risks that are inevitable. Hence, it is crucial that users understand the potential extent of risks before investing. Some of the risks involved with staking include:

1. Slashing- slashing happens to be a common problem in POS blockchains. Let’s say a POS validator fails to validate accordingly; it leads to both the validator and delegators losing a chunk of their rewards. This could also be the situation if the validator experiences downtime or double signs on the network.
2. Malicious attacks- When it comes to the Defi space, wallet attacks and scams happen often. Therefore, while staking, users are always advised to be aware of the risk exposure that comes with external wallets and platforms.
3. Technical requirements- It is common to find complicated technical requirements on some blockchains while staking. And unfortunately, an incorrectly set up wallet may lead to users losing their crypto assets as a result of improper configuration.
4. Unsustainable tokenomics- Investigating tokenomic models and understanding that your returns are subject to volatility is quite essential. Fluctuation of token values is a common feature that may mean losing a part or even your entire investment.

Staking on Binance, provides a secure and regulated platform for users. Although, you are still vulnerable to some risks, staking on Binance gives you the needed confidence to stake on the platform.

The following are a few risks that Binance provides a solution to:

1. Slashing risk- While the slashing risk is a major concern on other staking platforms, Binance is keen to eradicate this risk. This therefore means that the exact amount that a user stakes, will be returned. However, Binance is not in control of the fluctuation that may occur on the staked coins.
2. Wallet attacks and scams risk- Staking on Binance is less prone to wallet attacks and scams as it is a centralized and regulated crypto exchange .
3. Technical risk- Staking in Binance is as easy as a click of a button. You also get staking opportunities on 100+ cryptocurrencies. Additionally, users have an easy time receiving, removing and re-investing on their desired crypto assets.

The new Autostaking feature on Binance is just what the platform needed to automate the staking process. With this feature activated, users can automatically add their digital /crypto assets to the staking pool again once the staking period ends. Users can simply get started with Autostaking by clicking on “wallets”, “earn”, “locked staking” then “Autostaking”. However, users should do this before the interest end date.

Aside from trading and HoDLing, Binance is one of the best platforms to put your digital assets to work. Although staking comes with a number of risks, staking on Binance guarantees you safety and protection. You get the perks of operating in a secure and regulated exchange platform. Stake your way to profits with Binance Earn.

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