Well, in today’s article, we’ll be looking at Binance Earn Program and its several investment methods that might quite give you great returns on investment compared to your domestic savings account in your local banks. So stick around to get the full info and analysis on why you should invest your crypto assets using Binance Earn.
Introduction
With Binance Earn, you can grow your savings while you’re fast asleep and confident that your money is working hard for you. There are numerous choices, each based on specific presumptions about your risk tolerance, time horizon, and intended returns.
This investment program sure have you covered whether you just want to stake your Proof of Stake (PoS) coins, lend your money for interest, or securely deposit it to a DeFi service through Binance. Below, we’ll be seeing all Binance has to offer you.
Firstly, what Exactly is Binance Earn?
This is basically a Binance program one can utilize in a whole suite of financial products, to raise the amount of cryptocurrency you own. It can be compared to your cryptocurrency savings account.
Let’s walk through Binance Earn’s key takeaways and compound interest so you can decide which best fits your approach to investing.
How to Make Compound Interest Using Binance Earn to Increase Your Crypto Gains
Main Takeaways:
Below are the key things you must consider:
• Users must regularly reinvest the profits from interest-bearing goods like crypto savings, loans, and staking to gain compound interest.
• Users may miss out on exponentially more returns if compounding is not used.
• Binance Earn’s Auto-Subscription feature will automatically compound your savings and staking profits into flexible savings each day.
• Immediately after the subscription period has ended, resubscribe to compound returns from Binance Staking and Fixed Savings back into those products.
However, starting to compound your profits is a wise move if you already invest your money to generate passive income. To earn compound interest, use Binance Earn’s Auto-Subscription tool to automatically subscribe to your collected interest. You can either choose products that are easy to compounds, like Binance Staking and Fixed Savings, or you can let Binance Savings handle the process for you.
Compounding is not a novel concept. Perhaps you even recall learning about it in math class. Therefore, earning interest on your interest, also known as compound interest, is a storied financial concept that has assisted countless individuals in achieving their financial objectives. The fact that so few people use it, despite its well-known reputation, is surprising. You won’t ever forget to look for opportunities to earn compound interest again after looking at a simple example.
Data Analysis for Compound Interest
Consider putting $10,000 into a high-yielding cryptocurrency savings account with a 5% APY. Although you are free to keep your deposit in place for as long as you desire, returns are not always automatically reinvested. One year is the bare minimum lock-in duration.
You make a deposit, and after a year, you get $500 (5% of $10,000). You earn another $500 after the second year. You withdraw your deposit after five years and receive $12,500 in cash, making a 25% profit.
Imagine taking your money and interest each year and reinvesting it. You take your $1050 and reinvest it into the account after the first year. Then, after the second year, you’ll have $1102.50.
Why Does Compounding in Crypto Work So Well?
While the income on our savings account example was compounded annually at 5%, you may easily stake and earn compound on a few coins for yields of up to 100%.
You must remember, nevertheless, that investing in cryptocurrencies carries dangers. APYs are subject to change. More significantly, you can’t certain that your coins’ cash worth won’t decrease. Inflation is a problem even with local currencies: a standard high-rate savings account’s 0.50 percent annual percentage yield won’t buy you much if inflation is between two and three percent (in many regions, inflation rates are even higher).
How to Easily Compound Your Crypto
Compound interest can be earned without ever leaving Binance. There are numerous ways to ensure that your interest doesn’t go to waste. For any investor, Binance Earn offers both automatic and manual options.
1. Make use of Binance Savings’ auto-subscription feature.
Binance transfers your interest to your Spot Wallet every day if you’ve signed up for Flexible Savings or even Binance Staking. While you could manually reinvest, the Auto-Subscription function allows you to automate compounding. When the Auto-Subscription option is activated, Binance will subscribe the interest that has been earned to Flexible Savings.
2. After the campaign has concluded, resubscribe to Binance Staking and Locked Saving goods.
You must wait until the subscription time is ended if you invested in Binance Staking or Locked Savings before subscribing your interest earnings back into one of those two products. Reinvesting your money and earnings as soon as the campaign is over is one approach to increase your gains. For instance, if your membership was for 90 days, you would only need to compound four times a year. How effective do you think that will be?
Earn Compound Interest and Passive Income with Binance Earn
Compounding is a helpful tool for all users, but it’s not the only option to begin increasing your cryptocurrency earnings. With the money you’re hoarding, you can use a wide range of things on Binance Earn. You must register and complete Identity Verification before you can start earning compound interest, staking, or even just saving. After completing that, go to Binance Earn to begin in taking actiontoward your cryptocurrency objectives.
What are the Top 10 Cryptocurrency Earning Methods with Binance Earn?
The cryptocurrency market is developing swiftly, so investing in cryptocurrencies involves more than just purchasing and holding. There is much more you can do with your holdings than simply hoard them, even though holding has shown to be one of the greatest and safest investment methods throughout the past 10+ years of Bitcoin’s existence.
A portfolio of bitcoin products called Binance Earn is made to let you earn money passively from your holdings. You may start saving, staking, or even providing liquidity in DeFi markets using Binance Earn to start earning passive income on bitcoin, stablecoins, altcoins, and more. Additionally, the program enable’s earning opportunities for fiat currency only on Binance.
At the time of writing, Binance Earn has $4.2 billion worth of cryptocurrency assets, and the total incentives that will be distributed in 2020 will reach $70 million. More than 270,000 investors and users of Binance Earn are active each day, and the number is growing. Stablecoin activity on Liquid Swap surpassed $128 million, and as of late 2020, approximately $22 billion in money was locked in Binance’s DeFi.
Currently, 10 different products with various yield potentials and risk levels can help you increase your passive income. As a general rule, higher-risk/reward products tend to have higher yields, and lower-risk items tend to have lower yields. Therefore, let’s see them one after the other:
- Simple Earn
With Simple Earn, you may get payments on idle assets with either flexible or locked terms. You can subscribe to and redeem Flexible Products whenever you want, giving you complete control over your assets and the ability to earn daily rewards.
Locked Products offer greater benefits in exchange for committing your funds for a certain period with set redemption dates. Even though you will forfeit all benefits earned up to that moment, you can still decide to redeem your whole balance before the redemption date.
So why not use Simple Receive to earn rewards on these assets if you have money in your Spot Wallet? Making a straightforward decision between Flexible and Locked Simple Earn goods will make your assets work harder for you.
Keep in mind that your rewards won’t be determined the day you sign up for a Simple Earn product. The first interest payment is instead determined starting the day after your subscription.
- Launch Pool
You’ve probably heard about Binance Launchpad by now. It is a platform for the introduction of tokens where potential businesses can receive funding from Binance’s user base through an IEO (Initial Exchange Offering) (IEO). As a way for users to “mine” a new coin, yield farming or liquidity mining is another concept you’ve heard of.
What results, then, from the combination of yield farming and an IEO? Launchpool. For a chance to purchase a piece of a new token that is being introduced on Binance, you can lock up your BNB, BUSD, and other cryptocurrencies. Tokens occasionally even launch simultaneously on Launchpool and Launchpad.
As the cost of obtaining the new tokens is only the opportunity cost of locking your tokens, Launchpool is a fantastic way to generate some passive income. Nevertheless, you can use them whenever you want throughout the event.
- Binance Liquid Swap
A unique kind of exchange called Binance Liquid Swap values assets based on a formula rather than an order book. You are familiar with the operation of this type of liquidity protocol if you have read our Uniswap article. An automated market maker is a nicer title for it (AMM).
Although it is run by Binance, Binance Liquid Swap resembles Uniswap and other AMMs like Curve Finance. It’s a dead-easy way to quickly exchange between assets with minimal fees and slippage, like stablecoins.
That’s fantastic, but how does this relate to saving money? Well, you can work as a market maker too, much like Uniswap and other AMMs. Simply deposit one (or more) of the supported stablecoins to begin receiving interest payments. If you use this product instead of another one from Binance Earn, your returns may be higher.
Asset Management
You can access some more sophisticated savings solutions by clicking the Asset Management tab. But do not worry. They are still quite simple to use. See how they function first.
Dual Investment
Whatever the price does, Binance Dual Investment is a clever approach to get some extra revenue. It enables you to minimize price risk while maximizing the yield on your money. How does it function? Let’s see a little overview.
A cryptocurrency is deposited, and you receive a return based on two assets. You lock in a yield when you commit your holdings, but if their value rises while they’re locked up, you’ll make more money.
A BNB yield aggregator called the BNB Vault combines BNB DeFi Staking and Launchpool to produce returns for you. With BNB Vault, generating money is a cinch.
Your BNB will be converted into BNB Vault assets after you stake it. On the second day, interest will start to accrue, and daily incentives will be credited to your account.
You have two options for reclaiming your money at any time: rapid reclaiming and conventional reclaiming. Fast redemption enables you to return your BNB the same day that you submit your request, but you will forfeit the interest that day’s activity generated. Your money will be returned in a standard redemption the following day, but you will still be eligible for the interest that day’s interest accrued.
- Fixed Savings
Earn higher dividends on your stakes by storing 24 well-known crypto tokens, such as BTC, ETH, USDT, or BNB, for 7–90 day lock-up periods. Although you can subscribe at any time, incentives can only be redeemed after the lock-up period. That’s how a bond works in conventional investing; it’s that easy!
- Locked Staking
Stake tokens for as little as 10 USD to start earning larger incentives and other perks. Without forfeiting your initial wager (and forfeiting any prior staking rewards), you can redeem early without paying an early redemption fee. Select one of 30 Proof-of-Stake (POS) tokens to receive rewards with little risks, such as EOS, DOT, or ADA.
- Your Activities
Earn benefits for the actions you already take, like staking and cryptocurrency saving. Occasionally, Binance Earn offers unique savings products for specific cryptocurrencies. When the activity is finished before it is fully subscribed, your yield will automatically appear in your spot wallet.
- Staking ETH 2,0
Earn rewards for helping the ETH 2.0 network upgrade by staking Ethereum (ETH). Stake ETH on the blockchain and receive interest. Redeem BETH that is pegged 1:1 to your ETH holding to increase your profits.
- Defi Staking
Earn passive money without requiring any technology, technical expertise, or management of your private keys or wallets. Start yield farming by staking BTC, BUSD, DAI, USDT, or BNB. All money is tracked by real-time systems at Binance. Choose between phrases that are fixed or flexible.
Are they Still Any Other Way I can Earn Rewards on my Crypto Assets?
Of course, they are! Let’s quickly highlight some of the key takeways firstly:
Main Takeaways
• While there are various ways to earn cryptocurrency rewards, one of the simplest includes using Binance Earn in conjunction with the P2P network on Binance.
• While Binance Earn enables both novice and seasoned cryptocurrency users to earn rewards on the digital assets they possess, Binance P2P enables the direct purchase and sale of cryptocurrencies between users.
• Binance Earn offers a variety of options to earn rewards, ranging from basic products with adjustable and locked conditions to more complex ones like DeFi staking, automated market makers (AMMs), and others. Please be aware that not all products are offered in every nation.
• Binance customers can quickly sell their crypto assets for their preferred local currency by transferring their cryptocurrency from Binance Earn to Binance P2P.
However, users who are just beginning their cryptocurrency adventure frequently encounter a deluge of offers from business marketing prospects that at first appearance tend to be extremely alluring. Even so, you should constantly look into these assertions.
Small quantities of bitcoin can be obtained through a variety of channels, including airdrops, competitions, sales rounds, bug hunts, and sign-up incentives. There are also several trickier ways to get cryptocurrency incentives, but these are typically harder for beginners to use.
Because of this, products like those provided by Binance Earn are frequently preferred by new users. But first, let’s examine Binance P2P’s definition and operation in more detail.
Binance P2P: What Exactly Is It?
Millions of customers trust the bitcoin exchange known as Binance P2P. Peer-to-peer, or P2P, trading occurs directly between the parties engaged in buying and selling.
Because the platform won’t carry out any transaction until all parties have verified that the parameters of the deal have been met on both sides, the platform’s escrow service gives traders peace of mind.
On the surface, the procedure appears to be comparable to that occurring in a traditional, centralized exchange, where a user can swap one currency for another. But what is the crucial distinction, and how does this operate?
P2P trading works similarly to any real-world, over-the-counter transaction in that you publish your offer and provide the key details, including the asset you want to purchase or sell, its quantity, price, and mode of payment. As soon as the counterparty accepts your offer, the seller’s wallet’s money is momentarily frozen.
The platform records the transaction, and the buyer has a set amount of time—in the case of Binance P2P, under 15 minutes—to make the payment. Therefore, Binance service unlocks the frozen funds and transfers them into the buyer’s account once the seller confirms receipt of the payment.
As the platform is not a party to the transaction, Binance P2P plays a small role in this process, which significantly lowers commission costs. However, it also offers customers a high level of defense from dishonest buyers and dealers.
With more than 250 countries having access to Binance P2P, users from all over the world can trade cryptocurrencies quickly and safely for a small number of fees. To accommodate users’ needs, Binance P2P supports over 100 fiat currencies, 10 digital assets, and 700 payment methods.
How to Purchase Tokens on Binance P2P Using Local Currencies
On Binance, there are numerous ways to purchase cryptocurrency. If you wish to purchase tokens with USD, go to the following procedures.
1. Go to the homepage of the Binance app. If you have already created an account with the exchange, just log in and go to step 4 without stopping. Click [Register] to create an account if you don’t already have one.
2. Type in your email address, then choose a strong password. After that, click [Register] after reading the license agreement.
3. You must now establish a suitable payment option and confirm your identification.
4. Select [P2P Trading] from the menu.
5. Choose the coin you want to buy from the [Buy] tab. Use the [Amount] and [Payment method] filters to set the transaction’s parameters. Select the offer that best fits your requirements after a list of pertinent offers shows on the screen, then click [Buy].
6. Type the desired amount in the original currency or cryptocurrency and click [Buy].
7. The transaction’s specifics will be displayed on the screen. Verify the payment method and amount.
8. The sale will be finalized once the seller fulfills their end of the bargain.
What You Need to Do to Transfer Money from a P2P Wallet to a Spot Wallet
You might want to trade on a conventional cryptocurrency exchange under certain conditions. Therefore, you must shift your money from your Funding wallet to your Spot wallet to transfer your funds from Binance P2P to Binance’s spot exchange.
However, the word “spot” is derived from “spot markets,” which are exchanges where financial assets can be exchanged for prompt delivery, or “on the spot.” Most cryptocurrency exchanges automatically link buyers and sellers to spot markets. The money you can use to trade on Binance’s spot markets is kept in your Spot wallet.
The time right after you just bought these tokens is the easiest time to move them from your Funding wallet to your Spot wallet. A similar button will show up on your screen once a transaction has been completed. If you don’t take advantage of this chance, it will require multiple steps to move your cryptocurrency to your Spot wallet in the future.
1. Click the [Funding] button in the top navigation bar.
2. From the list of available assets, choose the coin you want to transfer and then click [Transfer].
3. In the [To] field, choose [Spot] and type the transfer amount. Select [Confirm Transfer].
4. Go to the [Spot] tab and see the amount that has been deposited to your Spot wallet.
Using the Binance Earn Wallet to navigate
Visit the home page of the Binance app and select [Wallets] from the top navigation bar to access your wallet.
The numerous account kinds are displayed on the left panel of the following page. See your entire Spot wallet balance by opening the “[Spot Account] page. Select the [Funding] tab to view all the ways you can purchase and sell tokens using fiat money.
To view the balance in your Earn wallet, go to the [Earn] page. Here, you may keep track of all current assets and check the statistics of your rewards over a given period in fiat and cryptocurrency. Your subscriptions can be filtered using the [All Holdings] drop-down option.
Methods in Using Binance to Earn on your Crypto
Click on the [Wallets] tab at the bottom of the Binance app, then select [Earn] to redeem and withdraw money from your wallet. The next step is to Click on the REDEEM button you’ll see.
The transaction will start right away, and the money will soon be transferred to your [Spot] wallet. Transfer the cryptocurrency to your [Funding] wallet to cash it out and sell it to other cryptocurrency users.
Final Thoughts
Lastly, you may estimate your rewards while utilizing Flexible Savings or Defi Staking on Binance Earn by using the calculator for Binance Earn APR. Moreover, you only need to enter the cryptocurrency, investment type, and subscription period.
The calculator will then evaluate the potential bitcoin benefits you could receive over a chosen time frame. The real or anticipated returns/yield in any fiat currency is not shown by APR.
Like mentioned in today’s article, Binance provides many useful tools in helping you earn rewards while holding your crypto through their Binance earning program. Therefore, if you are looking forward to earning good amount of crypto while investing, we suggest you look for the best earning method that fits your budget as mentioned in this article.
