Binance offers you alot of opportunities to put your idle crypto to work, so you dont just Hodl but you make profits also, one great way to generate passive income streams. the cool about these is, the interest rates in crypto are much higher than the meagre interest rates from your traditional banks.
I already wrote a blog post about the TOP 5 Features On Binance You Need To Know. In this post, I write about the different Earn and Savings products on the Binance.
Fixed Savings And Flexible Savings
The trading platform, Binance offers flexible and fixed savings terms. Flexible Savings lets you earn interest on your Crypto. You can deposit your Crypto, earn interest, and redeem them at any time you chose. Currently Binance offers 56 different flexible Savings products in total.
If you just want to hold some crypto I will advice that you transfer that idle crypto to Binance spot Wallet, because you can deposit it into a Flexible Savings account. This way, you put your idle crypto to work with the flexibility that you can Withdraw your funds at any time.
You will start earning daily interest starting the next day after your subscription.
Fixed Savings offers you better returns but less flexibility when it comes to wanting to withdraw your funds at a particular time. The difference is that in Fixed Savings you’ll set a duration for your funds to accrue interest. Why do I think this better? Well, you will get a higher interest rates than Flexible Savings products because the term and interest rate are both fixed.
Fixed Savings products mostly range from 7days to 90 days. I only choose fixed savings if I will not need my crypto elsewhere for that period of time i want to lock them in Fixed savings to earn a higher APY. At the moment, you can only choose between these three stable coins for locked savings.
There are also lending activities taking place on Binance. These are special events that pop up from time to time under the Activities tab. Generally these lending activities on Binance have capped supply. It means that you will need to be quick to subscribe because the lending activities offer higher returns than the Fixed Savings.
These lending products are quite similar to Fixed Savings but you can get higher rewards if you keep up with what’s happening under the Activities tab.
Flexible And Locked Staking
The next opportunity to generate passive income on Binance is Locked Staking. This only works with Proof of Stake coins in your Spot Wallet.
You earn staking rewards on your holdings simply by holding them in your spot wallet on Binance. Also, there is a way to earn even higher rewards on staking.
If you commit your Proof of Stake coins to be locked for a period of time ranging from 7days to 90 days, you will earn higher staking rewards. This is essentially the same terms like with Flexible and Fixed Savings but this time with staking.
Some staking coins will also allow you to do a Flexible Lock. You commit your funds for staking, but you still maintain the ability to withdraw if you want to.
The locked staking feature on Binance also includes Ethereum 2.0 staking. Please note, that your stake cannot be redeemed during the first phase which may take more than two years.
Launchpool And $BNB Vault
The Binance Launchpooland the $BNB Vault are another two oppotunity to generate passive income on Binance, especially when you are holding $BNB. I have already mentioned them in one of my previous posts TOP 5 Features On Binance You Need To Know
The Binance Launchpool issues and launches new crypto tokens. You can earn them by staking $BNB and certain cryptocurrencies in the Binance Launchpool.
You will always earn some crypto by staking $BNB. At the moment, you can earn $LIT, a decentralized cross-chain identity aggregator, and DODO which is an open, accessible, capital-efficient decentralized exchange platform.
The $BNB Vault is a $BNB yield aggregator. Staking $BNB in the Vault means participating in Launchpool, Savings, Defi staking, and other projects and at the same time gaining rewards in $BNB. When you deposit $BNB into the Vault, your rewards will be distributed the next day.
You will receive your Savings interest from the Vault on a daily basis, and the income will be calculated on the second day. Over time, you will farm a variety of different coins including $BNB Savings rewards on top.
Binance Launchpool and BNB Vault are both great ways to earn some passive income on Binance. As the cost of getting the new tokens is only the opportunity cost of locking your tokens. Even so, you can redeem them at any time!
Advanced Savings Options
The Binance Liquid Swap is a special type of exchange that prices assets according to a mathematical formula instead of an order book. It is somewhat similar to Uniswap or Curve Finance, but it is operated by Binance. It’s a dead-simple way to quickly convert between assets such as stablecoins with low fees and slippage.
Now like Uniswap and other AMMs, you can also become a market maker. Just deposit one of the supported stablecoins, and start earning interest.
Binance Dual Savings is a way to earn some passive income no matter which direction the price goes. Dual Savings lets you maximize yield on your savings while minimizing price risk. You can deposit a cryptocurrency and earn a return based on two assets. You commit your holdings, lock in a yield. You will earn more if the value of your holdings increases during the time being locked up.
If you are not registered on Binance yet, you can use my referral link with the code HOUDUYA7 for signing up. When you use it, it will save you trading fees each time you perform a trade on Binance. Don`t forget about this possibility when you introduce a friend to cryptocurrency as it will save both of you some money.
I am not by any way a financial advisor please do your own research before investing in the cryptocurrency market.