Passive Income on Binance
Binance, one of the largest exchanges, is currency offering users the possibility to earn rewards on their virtual currencies. If you go to the “Binance Earn” section, you will see different recommendations made by Binance on how to earn rewards on your cryptocurrencies.
Users will be able to stake their coins (if available), lend funds to borrowers (with flexible and fixed rates) and provide liquidity to different pools, among other things. Some rewards are as high as 12% APY on an annual basis. Take into consideration that interest rates will change on a regular basis.
You do not only have the possibility to deposit cryptocurrencies, but you will also be able to deposit your euros (EUR) and stablecoins (USDT/BUSD/USDC/DAI). With the Launchpool option, you are able to deposit your cryptocurrency and receive another token as a reward.
Liquid Swap would allow you to provide liquidity to different pools. At the moment, you can provide liquidity to different pools, including BUSD/USDT, BUSD/DAI, USDT/DAI, USDC/USDT and many others. Once you provide liquidity, you will be able to earn rewards on a regular basis.
How to Stake on Binance?
If you use Binance, you will have the possibility to stake your coins. That means that you will be able to participate in Proof-of-Stake (PoS) networks that are supported by Binance. In the staking section, you will be able to select “locked staking” and “DeFi staking.”
If you are holding a virtual currency like EOS, you can lock your coins for 7 days (or other periods) and you will receive interest for your coins once maturity is reached. There are different virtual currencies currently supported.
You can also select DeFi staking. You will be able to stake the coins using Binance but providing your coins to DeFi platforms. That means that you will not be giving the funds to Binance but you will be using Binance as an intermediary to use DeFi solutions and platforms. In general, DeFi staking offers higher APY.
How to Redeem/Withdraw Your Stake From Binance?
If you provided liquidity to a trading pool using Binance, you will be able to withdraw your funds in just a few simple steps. You need to go to “Liquid Swap” on the main page and select the pool you want to withdraw your funds from.
Once you do so, you can select the My Share section to see the information about your investment. If you select “redeem”, you can select whether you want to withdraw all your stake in that pool. Binance would allow you to choose the coin you want to redeem. If you were in the USDT/DAI pool, you would be able to select USDT, DAI or both (split).
Take into consideration that investing in these pools requires users to pay a fee. Thus, pay attention to it if you want to see whether you remain profitable or not after the staking period.