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How does Binance staking work? - A complete guide

 


Why should I Stake at Binance?

As the world's largest crypto exchange, Binance has an extensive and diverse range and functions and cryptocurrencies. At the moment, the platform offers over 100 cryptocurrencies for purchase. Many of these coins can be used for staking. These include very popular coins such as Bitcoin, Ethereum, Cardano, Solana, LUNA and Dogecoin.


The wide range of cryptocurrencies also offers the possibility for the user to choose the cryptocurrency that he likes best or that promises the highest annual returns. Many coins promise returns in the double-digit percentage range. The amount of the so-called rewards can vary and there is always a risk of lower returns. However, staking still offers excellent opportunities to make money, especially in the bear market. 


Binance is an excellent choice especially if you want to stake tokens from the second or third tier. These tokens often offer higher returns. 


Another great advantage of Binance is that there are no fees associated with staking. The rewards are usually paid out quickly within 28 days, but often in as little as 1 day. All of these factors make Binance an excellent choice when it comes to staking.


Advantages of Binance Staking:


world's largest crypto platform

over 100 coins to choose from

no staking fees

fast and reliable payment of rewards

If you want to start staking now, go to the Binance platform here!



What is staking?

The principle of staking is based on the unique way some cryptocurrencies find consensus and thus validate transactions. The proof-of-stake consensus mechanism is the method used by many modern cryptocurrencies to validate and verify the individual transactions on their network. Anyone who makes the coins they own available for validation can become a "validator". There are rewards from the network in the form of additional coins. More information on Proof of Stake can be found here .


Staking

Staking has thus developed into a method of investing your coins and thus receiving passive income in the form of the rewards distributed. This is similar to the principle of how interest rates behave at the bank, except that the structures are decentralized and the returns are much higher. 

What forms of staking does Binance offer?

As a platform, Binance offers various forms of staking with different advantages:


Flexibles Binance Staking

With flexible Binance staking, there are no deadlines for how long your coins should remain in a so-called staking pool. This is particularly interesting for beginners and for people who want to remain flexible with their capital.


Locked Binance Staking

With locked staking, the period of time that the coins will be made available for staking is predetermined. You will thus be "blocked" for a fixed period of between 7 and 90 days.   This generally allows for higher returns on Binance staking. The longer the tokens are made available for staking, the higher the returns.

With DeFi Binance Staking, transactions are processed via smart contracts . DeFi stands for Decentralized Finance and describes decentralized financial services via the blockchain. Check out our DeFi Guide ! 


With DeFi gaining tremendous popularity over the past few months and years, DeFi staking offers many opportunities for high returns. However, the risk is also somewhat higher, since all coins can be lost if a smart contract fails. Although Binance assumes no liability, it checks the investors with whom the platform works intensively.

Especially in a bear market, staking is particularly attractive as a source of income. Because here you can still earn passive income regardless of price movements. But what are the Binance staking returns?


When it comes to staking, we are talking about Annual percentage yield (APY) , the annual return from the rewards. Average APYs differ by cryptocurrency. At Binance you can expect APYs of up to 20% depending on the coin. This also includes the in-house Binance Coin. It helps that Binance does not charge any fees.



How does Binance staking work? - An instruction 

If you now want to operate at Binance Staking, we will give you instructions below. The process is not complicated and can be done even by a beginner. So that no questions remain unanswered, carry out the following steps and you can start right away.


Step 1: Registration 

In order to be able to operate at Binance Staking, you must first register with the platform . Go here to register with Binance.


When you register, you have the option of registering with your e-mail or your telephone number . You set your own password and will receive a code by email or SMS  to confirm your account .

Step 2: Verification

For Binance, security on the platform is one of their top priorities. That’s why you have to go through a verification process at Binance. This also increases security for you. However, the process is very simple and only takes a few minutes. 


First you enter your personal data, which is on your ID card, on the platform. You can then verify your identity either through your bank account or through a video call. The individual steps are explained very clearly in advance. After a few minutes, this verification is done. Binance will process this verification within 48 hours. 


Step 3: Acquire cryptocurrencies

After your verification, it is possible for you to deposit money on Binance and use it to buy cryptocurrencies that you use for staking. You can use all known payment options such as SEPA or credit card. 


Step 4: Staking 

To start staking at Binance, you need to have cryptocurrencies in the online wallet on the Binance platform. On the platform itself, you can use its own interface to start staking with the cryptocurrency you own and want to stake. 

To do this, go to the “ Earn ” tab at the top of the menu and then go to the “ Staking ” field! There you can choose between “Locked Staking” and “DeFi Staking”. Then go to the cryptocurrency of your choice and click “ Stake ”!

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