Binance Earn: what it is, how it works, and risks. Better?

 Binance Earn: what it is, how it works, and risks. Better?

Binance


Wondering what Binance Earn is and how it works in practice? Do you want to know more about the offers currently available to get an income from your crypto thanks to Binance? You are in the right place!

Binance is the largest cryptocurrency exchange in the world when it comes to the volume of trades made every day. This project has grown to such an extent that its crypto, the BNB, has reached the fourth position by market capitalization.

Among the many features available, today we will delve into the one called Binance Earn, which allows you to earn a passive income on your cryptocurrencies. 

We will see how it works in detail, what are the risks and convenience, comparing Binance also with other CeFi platforms.

I would therefore say not to delay any longer and to start with the discussion!

Binance Earn: what is it?

Binance Earn is the section of the exchange where you will find a whole series of earning possibilities. 

They are directed to so-called traders. those who intend to hold their cryptocurrencies in the long run.

Binance Earn

In addition to being able to benefit from a possible increase in the value of the crypto that has been purchased, additional returns can be obtained thanks to Binance Earn: a real passive income.

Basically, in the world of cryptocurrencies, it is not uncommon to receive rewards when you hold and bind certain crypto within a platform. 

An example is that of cryptocurrency staking. Compared to fiat currencies, this is a similar solution to that of a deposit account, in which you get interested by committing funds.

However, while the percentages reached in traditional finance are quite low (in the order of a few percentage points), in the world of cryptocurrencies you can easily get double-digit annual returns, which makes this type of investment particularly attractive.

More and more solutions of this type are emerging in the world of Defi (Decentralized Finance), even if they have not always proved reliable. 

For this reason, it may be worth relying on a rather secure platform like Binance, which is used by millions of users around the world.

How Binance Earn works

Let's now go into detail about how Binance Earn works. If you haven't already, the first step to using the service is to sign up for Binance. You can proceed for free via this link. You will be asked for your country of residence, after which you will access a screen like this:

Click on "Create My Account" to proceed. You will have to follow a simple wizard by entering some personal information and access to the platform itself. 

Afterward, you will be asked to verify your identity, providing a valid identification document.

Once this is done, you will need to deposit your funds into Binance. You can do this from fiat currency (such as the euro), or you can decide to transfer your crypto from another digital wallet

In the first case, the supported payment methods are credit/debit card (1.8% commission), SEPA transfer (0% commission), Advcash Wallet (0% commission), or P2P Express systems.

At this point, you will have within your spot wallet the overview of the available funds, both in terms of cryptocurrencies and fiat currencies. 

If you have deposited in euros, you can buy the cryptocurrencies that most interest you with a few simple steps.

Keep in mind that the fees paid to convert euros into cryptocurrency, at Binance are the lowest you will find on the market.

As for the detail of the crypto in your wallet, as you can see from the following image, on the right you will find all the available operations

Among them is the "Earn" function. In this sense, by clicking on it you will find the detail of all the possibilities.

Binance

By choosing a certain option, you will be sent back to the dedicated section, from which, by selecting that particular crypto, you will be able to view the available savings offers, which we will talk about shortly.

The moment you join one of the options, your funds will be transferred from the spot wallet to the earn wallet, from which you can monitor the situation of the gains generated day after day.

 Interests will be recognized by you on a daily basis!

As you can see, using the Binance Earn feature is very simple. Start getting interested now by clicking here.

Binance Earn: types of savings

In this section, as mentioned, we see in detail what are the types of savings that make up the Binance Earn program

For each of them, you will be given an indication of the principle of operation to give you the opportunity to choose with knowledge of the facts.

Savings

The first section of the Binance Earn program is called Savings. As you can see in the following image, it consists of three types of savings. Let's see it one by one.

Savings


The first is once again called Savings and let's say it is the most traditional form of investment, very similar to that of a deposit account. In this sense, you will have flexible or constrained lines at your disposal.

The difference lies in the fact that in the first case you can withdraw your crypto funds from the Binance Earn wallet at any time, while in the second your assets will be blocked for a predetermined period of time. 

It goes without saying that the second choice, in general, offers superior returns.

Another option within this category is the BNB Vault. In essence, it is a solution that combines various earning possibilities related to the crypto of the Binance exchange (such as Defi staking, flexible savings, and launch pool) to provide the best possible return.

The third feature that makes up the Savings section is Auto-Invest. It allows you to create your own automatic investment plan, allowing you to buy a certain cryptocurrency at regular intervals.

 This is similar to storage plans (PACs). They are currently available for time intervals between 3 months and 3 years.

Staking

The second section of the Binance Earn program is about Staking. As we have already mentioned, it consists in constraining certain crypto to obtain returns over time. Here, too, there are three options.

Staking


The first is locked staking and is comparable to an investment with a tied deposit account. It is decided in this sense to block certain crypto in exchange for a return, which will be provided on a daily basis. Once the lockdown period is over, you will get the tied amount back.

Alternatively, there is Defi staking. Binance gives you access to the world of Decentralized Finance, which is made up of many rather lucrative projects, to make money.

This is a slightly riskier solution than the previous one, as your funds will be entrusted to third parties. However, it must be said that Binance makes a selection upstream of all projects, choosing only the best and most reliable ones. So, you don't have to worry about it.

The third option currently available is ETH 2.0 staking. It refers to a project to modernize the Ethereum network, which requires a considerable accumulation of this cryptocurrency. 

In this sense, you can also participate and, as proof of your contribution, you will receive the BETH token in a 1:1 ratio.

You'll get paid on a daily basis, and once the network upgrade process is complete (an estimated two-year duration), you can also receive your ETH assets back.

Farming

The third section of the Binance Earn program is also the one that contains the most innovative processes and is called Farming.

Precisely for this reason, I recommend using it only when you have already become familiar with the basic features. Again, there are three options.

Farming


The first is the so-called Liquidity Farming. It is a tool through which you can provide liquidity to pools quickly and cheaply, obtaining interest and a commission fee in return.

For those who do not know yet, such a pool is nothing more than a group of tokens locked in a smart contract. It allows for decentralized lending, trading, and other functions that require a provision of liquidity.

To activate this feature, you will first need to read about the information provided by Binance and complete a questionnaire. This is because the owners of the exchange want their users to understand what they are doing through the use of this feature.

The second option is quite smiley to the previous one and is called Swap Farming. You can use it when you need to exchange one cryptocurrency for another (in swap jargon).

Through this operation, you can recover up to 50% of the exchange's exchange fees, which will be provided to you in BNB.

The third option is the Launchpool. It is a real incubator of new projects, which are financed by Binance users. In this sense, you can consult the available offers at any time, deciding to provide liquidity in exchange for an interest.

In the past, very important projects have been funded, one above all that of the Anchor protocol that works on the Luna blockchain.

Double investment

The fourth and final section of Binance Earn contains a single feature called Double Investment

Again, to take advantage of it you will have to consult a guide provided by the exchange and successfully complete a questionnaire.

Double Investment


This is because it is one of the most complex forms of investment made available by Binance. In this sense, I will try to explain the principle of operation by referring to the exchange for all the necessary insights.

In essence, you will go to bind a certain cryptocurrency against a return, which will be disbursed in the currency itself or an alternative depending on the final value of the crypto that has gone committed. 

The returns generated are very interesting, but I advise you to carefully read the information provided by Binance before starting to use this service.

Frequently asked questions and answers

How much do you earn with Binance Earn?

Binance Earn allows you to get a double-digit annual return on cryptocurrencies that you deposit and bind for a period of 90 days. For example, currently, the APR is more than 10% for the following cryptos: DOT, AVAX, MATIC, LUNA, ADA, and SOL. To find out how much you can earn on all crypto with Binance, click here.

What are the alternatives to Binance Earn?

Binance Earn is one of the best methods to get an income from your crypto and stablecoins, but it's not the only one. 

The most interesting alternatives are provided by CeFi exchanges and platforms such as Nexo, Crypto.com, and YouHodler. For a comparison between the various platforms of this type read our article.

Are there any risks from using Binance Earn?

In general, the risks of losing the sums committed are rather remote and limited only to those high-yield cases of Defi staking or in any case to all the solutions that rely on third parties.

 As proof of this, Binance is used by millions of users around the world and no one complains about the loss of deposited cryptos.

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