28.11.2021

Binance Earn, how to get passive income from keeping cryptocurrency on the exchange?

The largest cryptocurrency exchange Binance provides services not only for trading cryptocurrencies, but also for staking – storing cryptoassets with additional passive income.

The rate of return depends on the chosen cryptocurrency and the type of investment: deposit, staking, Launchpool. We will analyze each format presented on Binance Earn so that everyone can choose the best option for themselves.

The Binance platform has the highest turnover of funds (maximum liquidity) and the best conditions for receiving passive income from storing cryptocurrency, due to an extremely wide selection of instruments, and what is extremely important, the exchange supports transfers in rubles from Visa / MasterCard bank cards and payment systems QIWI, Advcash , Payeer .

How does Binance Earn work?

All of Binance’s passive income services are merged under the name Binance Earn . They are accessed through the “Finance” menu in the header of the exchange website https://www.binance.com.

Binance Earn in the Finance menu

Binance Earn offers easy and secure ways to make money in cryptocurrency, including temporary blocking of stablecoins with predictable returns with a selection of high yield coins with above average and high risks.

After placing your assets on the wallet of the exchange, you can choose one of dozens of available financial products with cryptocurrency: just transfer your funds and you have already started earning. Locked funds on various products can be unlocked at any time and withdrawn along with the profit.

Earnings appear the very next day after the deposit. Terms and conditions vary depending on the product you choose, but as a rule, profits are displayed in your account dashboard as quickly as possible.

Types of passive income on Binance Earn

There are three types of passive income financial products on Binance Earn:

  • Products with flexible terms (dynamic rate of return, the ability to withdraw assets at any time without losing income). These include Floating Rate Deposits, Launchpool, and BNB Vault.
  • Products with fixed conditions (fixed yield and shelf life). These include fixed rate deposits, staking and promotions. A separate place among these products is held by Ethereum 2.0 staking.
  • High risk products (higher profitability, unlimited risk of losses). These include DeFi Staking, Double Investing, and Liquid Swap.

The funds that you have invested in the products of the Binance Earn line are displayed in your personal account in a special wallet designed for passive income. This wallet is called Earn.

Floating rate deposits

Floating rate deposits allow you to receive interest on your funds. They are easy to use and offer great flexibility. You can deposit funds, earn interest and withdraw them at any time.

So, if you have funds in your spot wallet, why not open a floating rate deposit? Since you have access to the funds on the deposit at any time, you can make them work until they are needed somewhere else.

Binance Floating Rate Deposits

Please note that no interest will be charged on the floating rate deposit on the day of subscription. The first payment of interest occurs the next day after the subscription.

Fixed rate deposits

Fixed rate deposits offer higher returns but less flexibility in accessing funds. The difference is that in order to accrue interest, you block funds for a certain period.

What is the advantage? Typically, such deposits have higher interest rates than floating rate deposits, since both the term and the rate are fixed.

Fixed Rate Deposits on Binance

Fixed rate products range from 7 to 90 days. Therefore, if you know that you will definitely not need some funds for a certain period of time, then you can block them in order to earn a higher APY.

Fixed staking

By simply storing coins with Proof of Stake on a spot wallet, you can receive rewards for staking your assets. However, there is a way to get higher rewards.

If you block PoS coins for a period of 7 to 90 days, you can get a higher income. Basically, this is the same as floating and fixed rate deposits, only for staking.

Fixed staking on Binance

In addition, perpetual staking is supported for some coins, in which you deposit your funds for staking, but if necessary, you can withdraw at any time.

ETH 2.0 staking

Staking ETH 2.0 on Binance is significantly different from staking other coins.

  • The term for such staking is not limited by a specific date, but by the moment when the Ethereum network switches to the Ethereum 2.0 protocol (read more about this here). According to the plans of the developers, this could take more than two years.
  • You cannot stop staking early. ETH coins locked for staking cannot be unlocked until the current phase of the Ethereum network upgrade is complete.
  • A very special procedure has been developed to complete the staking. ETH coins will not be automatically unlocked upon completion of staking. To unlock them, you will need specially issued BETH tokens. BETH tokens are issued for free to anyone who has blocked ETH for staking on the Binance exchange. The number of BETH tokens is equal to the number of locked ETH coins. When ETH is unlocked, the BETH tokens used to unlock will burn.
  • BETH tokens earned by placing ETH for staking can be traded on the Binance exchange at any time. As of the end of February 2021, the BETH / ETH rate is 0.986, that is, the loss on sale will be slightly less than 1.5%. But even if you sell your tokens, you will continue to receive staking income until the new owner of the tokens burns them and takes your ETH coins out of staking.
  • Income from staking ETH 2.0 is accrued not in ETH, but in BETH tokens.

Staking ETH 2.0 on Binance

To start staking Ethereum, you need to go to Binance Earn, then to “Staking ETH 2.0” and click on the “Start staking” button.

Launchpool

You’ve probably heard of Binance Launchpad by now. It is a token launch platform where promising projects are funded by Binance’s user base through an Initial Exchange Offering (IEO). You may also have heard about profitable farming and liquidity mining: users block funds in liquidity pools in order to “mine” new tokens.

Binance Launchpad

What happens if you combine IEO and profitable farming? Launchpool. You are blocking BNB, BUSD and other cryptocurrencies to get a share of the new token pool launched on Binance. Sometimes, tokens are launched on Launchpad and Launchpool at the same time.

Launchpool is a good way to generate passive income, as the cost of obtaining new tokens is just the cost of locked tokens. In addition, you can return blocked funds at any time during the farming period.

Conclusion

So, there are quite a few options for passive income from cryptocurrency for 2021. The Binance exchange has developed a wide range of tools to make your savings on the exchange generate stable passive income.

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