In this blog I will tell you:
the different ways to make money by binance using cryptocurrencies,
we are doing a deeper dive
into the concept of staking and then, we’ll
get to the different ways staking can earn
you money on the Binance app.
If you are new to the channel, welcome, and
if you are returning, welcome back.
Be sure to drop a like on this video, so that
more people can see the information we are
sharing in this video.
Also, subscribe and turn on post notifications
so you never miss any of our videos.
Without further ado, let us get into the video.
If you have always heard about about staking
but always wondered what it actually is, well
there is a simple explanation.
It is the concept that allows cryptocurrencies
to confirm transactions on their network.
Staking is also one way you can let your cryptocurrencies
work for you and earn passive income.
With staking, you allocate your cryptocurrency
to supporting a blockchain network and in
return you get interest on the tokens that
you have staked depending on how long you
choose to stake them for.
However, you should know that the interest
that you get for staking your coins is completely
up to the particular cryptocurrency that you
are staking.
Speaking of the cryptocurrency that you decide
to stake, in the last video about making money
with cryptocurrency, I briefly mentioned something
about proof-of-work and proof-of-stake, and
these two play an important role in your ability
to stake.
In the simplest terms I can think proof-of-stake
and proof-of-work are simply consensus systems
that certain cryptocurrency tokens run on.
A consensus system is simply a fault-tolerant
mechanism used in blockchain systems to achieve
the necessary agreement on a single data value
is of the network among distributed or multi-agent
systems like cryptocurrencies.
Bitcoin, for example, runs on the proof-of-work
consensus system, which involves heavy computers
and lots of energy to mine a coin.
The proof-of-stake consensus system, on the
other hand, is designed to be faster, more
secure, and more efficient.
Now, the crypto token that you decide to hold
or buy is an important part of staking, because
staking can only be performed with cryptocurrencies
that run on the proof-of-stake consensus.
So, be sure to have all of these checked before
you move on.
Now, that we are all caught up on the basics
of Staking, let us get into an overview of
how you can turn your crypto tokens into a
passive income stream for you.
BINANCE EARN
Binance Earn is a feature on the Binance platform
that offers a wide range of options and products
that allows its users to make money by staking
their coins.
Depending on you risk tolerance and how long
you are willing to wait, these options give
you flexible terms that can fit almost anyone.
To access Binance Earn, log in to you Binance
account for web and click on the Earn tab
on the menu bar at the top of your computer
screen.
On clicking this tab, a drop-down list will
appear.
You’ll then see a list of items or products
related to Binance Earn, Staking and others.
Clicking on Binance Earn takes you to a new
page.
On the Binance earn page, you will find three
options on display, Guaranteed, High Yield
and more recently Auto Invest.
So, basically, you are allowed to either go
for investments in stable coins that bring
predictable returns, Guaranteed, or you can
explore high-yield staking coins that come
with much higher gains and risk to match.
The third option is more like a Dollar Cost
Averaging strategy, if you want to know what
that means, I did a video explaining it which
you can watch with the card up above.
You basically choose a cryptocurrency that
you want to buy on a regular basis and this
purchased crypto will be automatically deposited
into your account so you can earn passive
income.
For mobile though, the options are the same,
except for the Auto Invest option, but you’ve
got the Guaranteed and High Yield.
Now, if you are a beginner at investing in
crypto, then, the best place to start is,
of course, the low-risk guaranteed section
that has relatively stable yields.
With guaranteed staking, you can also get
back your principal after the locking period.
On the Binance Earn page, you also a get a
section for the coins available for staking.
You can filter the coins you see by “Popular
Coins” or “Best for Beginners” to see
Binance’s suggestion for the best place
to start.
Right under the Binace Earn page header, you
will find the drop-down menu for the filters
to get suggestions from Binance or just select
a specific coin of your choice and hit search.
If you are completely new to investing in
cryptocurrencies, then, it might be best to
start off with the coins Binance suggests
are best for beginners.
But, that’s not all.
Scrolling down the Guaranteed section of the
Binance Earn page, you will find more products
that Binance offers users to earn with their
coins.
There is Savings, Locked Staking, Launchpool,
BNB Vault, and ETH 2.0 Staking et cetera.
Each of these are unique staking options that
offer varying level of interest rates and
returns.
Clicking on their individual buttons below
takes you to the dedicated page for each of
these products.
So, let us do a quick overview of what each
of these products have to offer.
BINANCE SAVINGS
Starting out with Savings, this has two main
options in the box.
You can choose between flexible savings and
Fixed or Locked Savings.
This system is almost the same as what banks
offer you.
Simply, deposit crypto and gain interest on
the deposits without having to do anything.
The major differences between the Fixed and
Flexible savings are withdrawal and interest
rates.
The option you go for will be dependent on
how patient you can be with your investments.
On the flexible side, you can withdraw your
deposits whenever you want at whatever interest
you have gotten on your principal.
With fixed savings, however, you will have
to live your deposit for a fixed period of
time, pretty much like the fixed deposit account
in regular banks.
The upside with Fixed savings is that it offers
way higher returns on investment than you
would get with Flexible savings.
One thing to note with Fixed savings is that
you actually get the freedom to withdraw your
assets when you want before the fixed date.
But, you will be forfeiting whatever interest
that has been gained on your asset, should
you choose to withdraw too soon.
Now, on the Binance savings page, you will
find another tab labelled Activities.
The Activities section contains staking opportunities
that offer very high yields in return.
These different “activities” are offered
by both Binance and many other projects
This section is a little tricky, and so I
would recommend that you get familiar with
the more basic areas and work your way up
to the more complex sections like activities.
For those that are still interested in how
it works.
You can gain even higher returns if you decide
to lock the coins into the platform.
You can subscribe to any activity you want
until it reaches its maximum limit.
I’ll leave a link to the Binance announcement
page in the description below so you can be
up to date on all its new Activities as it
is a continuously changing system.
Well, that is all for Binance Savings, next
on the list is Launchpool.
LAUNCHPOOL
To understand the usage and functionality
of the Launchpool product on Binance, we first
need to understand Yield Farming which involves
lending or staking your cryptocurrency coins
or tokens to get rewards in the form of transaction
fees or interest.
This is somewhat similar to earning interest
from a bank account whereby you are technically
lending money to the bank.
So, take for example, you decide to stake
your crypto in a Decentralized Finance project
that involves adding liquidity or money to
a liquidity pool, the stake is bound to come
with a reward for your investment.
Now, when you decide to reinvest the rewards
gotten from this stake, this is what Yield
Farming is.
Using the Launchpool product on Binance, you
get easy access to new assets that you can
farm and earn.
As a reward for staking their coins, users
also get new launched tokens when they stake
their crypto assets.
With Launchpool, rewards on investment get
disbursed by the hour, and the icing on the
cake here is that you are allowed to withdraw
your assets whenever you want.
BNB VAULT
For those who may not know, BNB is the Binance
Coin, a cryptocurrency owned by Binance itself.
With that being said, you can probably already
guess what this is about, and a sense of how
it works.
BNB Vault works as a capital-guaranteed product
that is designed to help investors widen their
potential income with the BNB token.
It is quite simple.
When a BNB holder invests in the Vault, these
holders are exposed to several centralized
and decentralized products that they can invest
in with one click of a button.
The Vault also allows investors to increase
their yields, and enjoy a truckload of opportunities
that the Binance ecosystem offers.
LOCKED STAKING
Next on the list is Locked Staking.
This is somewhat similar to Fixed Savings
we discussed earlier in the Savings section.
However, to use the Locked Staking product
on Binance, you have to stake crypto assets
on the blockchain.
What this means is that you are allowed to
withdraw your assets after your subscription
to the product is successful.
But, here is where the real difference is
evident.
There is an unlocking period attached to any
asset that you decide to stake.
Each asset comes with its own locking period,
and the locking period for that asset must
be completed before you can take back what
is yours.
ETH 2.0 STAKING
Ethereum recently launched an upgrade to its
blockchain that moved it from a proof-of-work
system to a proof-of-stake consensus system.
With Binance’s ETH 2.0 staking all Binance
users now have the quick access to staking
the new Ethereal 2.0.
With just 0.1 ETH and a few clicks, Binance
will handle all your validator operating expenses
and to top it all off, you don’t have to
worry about on-chain penalties, as Binance
also covers the risk.
Right now, Binance has a token for ETH called
the BETH or Binance ETH and it is used to
represent your staked ETH on a 1 to 1 basis
so 1 ETH is 1 BETH, this is to help ease the
complications of the ETH 2.0 staking.
Well, that is all for the Guaranteed section
of the Binance Earn page.
Now, let us jump to the High Yield section.
HIGH YIELD
As for the High Yield section of the Binance
Earn page, you have three other options to
choose from.
DeFi Staking, Dual Investment, and Binance
Liquid Swap.
Before we jump in, please be reminded that
the high yield nature of the investments in
this section also come with a relative high
risk.
So, ensure to do proper research on whatever
product you want to put your money into before
you invest.
DEFI STAKING
Decentralized Finance is a tricky space that
not a lot of people have fully understood,
however, the benefits that it offers are as
close as you can get to endless.
So, what if you could access the benefits
of Decentralized Finance without having to
deal with the messy details?
Well, this is what Binance’s High Yield
DeFi Staking offers you.
DeFi Staking on Binance Earn allows you to
access decentralized financial Services using
smart contracts, but no private keys, rescue
acquisition, trading, or any overly complicated
tasks.
This is offering some of the highest possible
return on a silver platter without compromising
the safety of your assets.
Keep in mind, though, that DeFi products also
have locking period.
If you decide to withdraw your assets before
the locking period elapses, you are likely
to miss out on some or all of your rewards.
All of the DeFi products come with different
rules and details, so, please read the all
the terms for the products before you start
putting in your money, so you don’t get
stuck halfway.
I would also link the FAQ page for the DeFi
Staking on Binance.
DUAL INVESTMENT
The concept of Dual Investment is both simple
and complex if you try to think about it too
hard.
With Dual Investments, you are to deposit
just one cryptocurrency, however, your earnings
will be based on two different assets.
Using this product opens up the opportunity
to commit your crypto assets, and have them
stored in a savings yield.
If the price of the committed assets goes
up in the market, you earn even more money
on your savings.
The returns you get on your savings and the
currency you get paid in are dependent on
how the price moves since your first investment
in the Dual Investment system.
When you hit the subscribe button on any of
the products, you will see a dialogue box
carrying all of the information that you will
need concerning the product.
Please ensure that you go through all of the
details as they will determine how you earn
by the delivery date.
Do note that Dual Investment does not permit
you to withdraw your assets until the expiration
date of the product and it is a non-principal
protected structured saving product so, again,
really high risk.
BINANCE LIQUID SWAP
Binance Liquid Swap runs on the simple rules
of liquidity pools.
It draws from the good sides of both the centralized
and decentralized finance system to offer
users high annual returns when they add liquidity
to liquidity pools on Binance.
Users are also allowed to swap their cryptocurrencies
in the liquidity pool.
With this, they can enjoy low slippage and
low handling fees.
However, this staking option is as risky as
it gets.
In fact, the first thing you see on the Liquid
Swap page is a risk warning.
You may one to take a good look at this warning
and be sure you are up for the risk before
diving in.
And that is it for this video guys.
Don’t forget to leave your comments and
questions in the comment section below and
I’ll be there chatting with you guys.
If there are any of these specific products
that you would like me to do a more detailed
tutorial for, let me know in the comment section
below as we couldn’t go all in on each one,
we’ll stay here for hours.
so you never miss any of our videos.
Without further ado, let us get into the video.
If you have always heard about about staking
but always wondered what it actually is, well
there is a simple explanation.
It is the concept that allows cryptocurrencies
to confirm transactions on their network.
Staking is also one way you can let your cryptocurrencies
work for you and earn passive income.
With staking, you allocate your cryptocurrency
to supporting a blockchain network and in
return you get interest on the tokens that
you have staked depending on how long you
choose to stake them for.
However, you should know that the interest
that you get for staking your coins is completely
up to the particular cryptocurrency that you
are staking.
Speaking of the cryptocurrency that you decide
to stake, in the last video about making money
with cryptocurrency, I briefly mentioned something
about proof-of-work and proof-of-stake, and
these two play an important role in your ability
to stake.
In the simplest terms I can think proof-of-stake
and proof-of-work are simply consensus systems
that certain cryptocurrency tokens run on.
A consensus system is simply a fault-tolerant
mechanism used in blockchain systems to achieve
the necessary agreement on a single data value
is of the network among distributed or multi-agent
systems like cryptocurrencies.
Bitcoin, for example, runs on the proof-of-work
consensus system, which involves heavy computers
and lots of energy to mine a coin.
The proof-of-stake consensus system, on the
other hand, is designed to be faster, more
secure, and more efficient.
Now, the crypto token that you decide to hold
or buy is an important part of staking, because
staking can only be performed with cryptocurrencies
that run on the proof-of-stake consensus.
So, be sure to have all of these checked before
you move on.
Now, that we are all caught up on the basics
of Staking, let us get into an overview of
how you can turn your crypto tokens into a
passive income stream for you.
BINANCE EARN
Binance Earn is a feature on the Binance platform
that offers a wide range of options and products
that allows its users to make money by staking
their coins.
Depending on you risk tolerance and how long
you are willing to wait, these options give
you flexible terms that can fit almost anyone.
To access Binance Earn, log in to you Binance
account for web and click on the Earn tab
on the menu bar at the top of your computer
screen.
On clicking this tab, a drop-down list will
appear.
You’ll then see a list of items or products
related to Binance Earn, Staking and others.
Clicking on Binance Earn takes you to a new
page.
On the Binance earn page, you will find three
options on display, Guaranteed, High Yield
and more recently Auto Invest.
So, basically, you are allowed to either go
for investments in stable coins that bring
predictable returns, Guaranteed, or you can
explore high-yield staking coins that come
with much higher gains and risk to match.
The third option is more like a Dollar Cost
Averaging strategy, if you want to know what
that means, I did a video explaining it which
you can watch with the card up above.
You basically choose a cryptocurrency that
you want to buy on a regular basis and this
purchased crypto will be automatically deposited
into your account so you can earn passive
income.
For mobile though, the options are the same,
except for the Auto Invest option, but you’ve
got the Guaranteed and High Yield.
Now, if you are a beginner at investing in
crypto, then, the best place to start is,
of course, the low-risk guaranteed section
that has relatively stable yields.
With guaranteed staking, you can also get
back your principal after the locking period.
On the Binance Earn page, you also a get a
section for the coins available for staking.
You can filter the coins you see by “Popular
Coins” or “Best for Beginners” to see
Binance’s suggestion for the best place
to start.
Right under the Binace Earn page header, you
will find the drop-down menu for the filters
to get suggestions from Binance or just select
a specific coin of your choice and hit search.
If you are completely new to investing in
cryptocurrencies, then, it might be best to
start off with the coins Binance suggests
are best for beginners.
But, that’s not all.
Scrolling down the Guaranteed section of the
Binance Earn page, you will find more products
that Binance offers users to earn with their
coins.
There is Savings, Locked Staking, Launchpool,
BNB Vault, and ETH 2.0 Staking et cetera.
Each of these are unique staking options that
offer varying level of interest rates and
returns.
Clicking on their individual buttons below
takes you to the dedicated page for each of
these products.
So, let us do a quick overview of what each
of these products have to offer.
BINANCE SAVINGS
Starting out with Savings, this has two main
options in the box.
You can choose between flexible savings and
Fixed or Locked Savings.
This system is almost the same as what banks
offer you.
Simply, deposit crypto and gain interest on
the deposits without having to do anything.
The major differences between the Fixed and
Flexible savings are withdrawal and interest
rates.
The option you go for will be dependent on
how patient you can be with your investments.
On the flexible side, you can withdraw your
deposits whenever you want at whatever interest
you have gotten on your principal.
With fixed savings, however, you will have
to live your deposit for a fixed period of
time, pretty much like the fixed deposit account
in regular banks.
The upside with Fixed savings is that it offers
way higher returns on investment than you
would get with Flexible savings.
One thing to note with Fixed savings is that
you actually get the freedom to withdraw your
assets when you want before the fixed date.
But, you will be forfeiting whatever interest
that has been gained on your asset, should
you choose to withdraw too soon.
Now, on the Binance savings page, you will
find another tab labelled Activities.
The Activities section contains staking opportunities
that offer very high yields in return.
These different “activities” are offered
by both Binance and many other projects
This section is a little tricky, and so I
would recommend that you get familiar with
the more basic areas and work your way up
to the more complex sections like activities.
For those that are still interested in how
it works.
You can gain even higher returns if you decide
to lock the coins into the platform.
You can subscribe to any activity you want
until it reaches its maximum limit.
I’ll leave a link to the Binance announcement
page in the description below so you can be
up to date on all its new Activities as it
is a continuously changing system.
Well, that is all for Binance Savings, next
on the list is Launchpool.
LAUNCHPOOL
To understand the usage and functionality
of the Launchpool product on Binance, we first
need to understand Yield Farming which involves
lending or staking your cryptocurrency coins
or tokens to get rewards in the form of transaction
fees or interest.
This is somewhat similar to earning interest
from a bank account whereby you are technically
lending money to the bank.
So, take for example, you decide to stake
your crypto in a Decentralized Finance project
that involves adding liquidity or money to
a liquidity pool, the stake is bound to come
with a reward for your investment.
Now, when you decide to reinvest the rewards
gotten from this stake, this is what Yield
Farming is.
Using the Launchpool product on Binance, you
get easy access to new assets that you can
farm and earn.
As a reward for staking their coins, users
also get new launched tokens when they stake
their crypto assets.
With Launchpool, rewards on investment get
disbursed by the hour, and the icing on the
cake here is that you are allowed to withdraw
your assets whenever you want.
BNB VAULT
For those who may not know, BNB is the Binance
Coin, a cryptocurrency owned by Binance itself.
With that being said, you can probably already
guess what this is about, and a sense of how
it works.
BNB Vault works as a capital-guaranteed product
that is designed to help investors widen their
potential income with the BNB token.
It is quite simple.
When a BNB holder invests in the Vault, these
holders are exposed to several centralized
and decentralized products that they can invest
in with one click of a button.
The Vault also allows investors to increase
their yields, and enjoy a truckload of opportunities
that the Binance ecosystem offers.
LOCKED STAKING
Next on the list is Locked Staking.
This is somewhat similar to Fixed Savings
we discussed earlier in the Savings section.
However, to use the Locked Staking product
on Binance, you have to stake crypto assets
on the blockchain.
What this means is that you are allowed to
withdraw your assets after your subscription
to the product is successful.
But, here is where the real difference is
evident.
There is an unlocking period attached to any
asset that you decide to stake.
Each asset comes with its own locking period,
and the locking period for that asset must
be completed before you can take back what
is yours.
ETH 2.0 STAKING
Ethereum recently launched an upgrade to its
blockchain that moved it from a proof-of-work
system to a proof-of-stake consensus system.
With Binance’s ETH 2.0 staking all Binance
users now have the quick access to staking
the new Ethereal 2.0.
With just 0.1 ETH and a few clicks, Binance
will handle all your validator operating expenses
and to top it all off, you don’t have to
worry about on-chain penalties, as Binance
also covers the risk.
Right now, Binance has a token for ETH called
the BETH or Binance ETH and it is used to
represent your staked ETH on a 1 to 1 basis
so 1 ETH is 1 BETH, this is to help ease the
complications of the ETH 2.0 staking.
Well, that is all for the Guaranteed section
of the Binance Earn page.
Now, let us jump to the High Yield section.
HIGH YIELD
As for the High Yield section of the Binance
Earn page, you have three other options to
choose from.
DeFi Staking, Dual Investment, and Binance
Liquid Swap.
Before we jump in, please be reminded that
the high yield nature of the investments in
this section also come with a relative high
risk.
So, ensure to do proper research on whatever
product you want to put your money into before
you invest.
DEFI STAKING
Decentralized Finance is a tricky space that
not a lot of people have fully understood,
however, the benefits that it offers are as
close as you can get to endless.
So, what if you could access the benefits
of Decentralized Finance without having to
deal with the messy details?
Well, this is what Binance’s High Yield
DeFi Staking offers you.
DeFi Staking on Binance Earn allows you to
access decentralized financial Services using
smart contracts, but no private keys, rescue
acquisition, trading, or any overly complicated
tasks.
This is offering some of the highest possible
return on a silver platter without compromising
the safety of your assets.
Keep in mind, though, that DeFi products also
have locking period.
If you decide to withdraw your assets before
the locking period elapses, you are likely
to miss out on some or all of your rewards.
All of the DeFi products come with different
rules and details, so, please read the all
the terms for the products before you start
putting in your money, so you don’t get
stuck halfway.
I would also link the FAQ page for the DeFi
Staking on Binance.
DUAL INVESTMENT
The concept of Dual Investment is both simple
and complex if you try to think about it too
hard.
With Dual Investments, you are to deposit
just one cryptocurrency, however, your earnings
will be based on two different assets.
Using this product opens up the opportunity
to commit your crypto assets, and have them
stored in a savings yield.
If the price of the committed assets goes
up in the market, you earn even more money
on your savings.
The returns you get on your savings and the
currency you get paid in are dependent on
how the price moves since your first investment
in the Dual Investment system.
When you hit the subscribe button on any of
the products, you will see a dialogue box
carrying all of the information that you will
need concerning the product.
Please ensure that you go through all of the
details as they will determine how you earn
by the delivery date.
Do note that Dual Investment does not permit
you to withdraw your assets until the expiration
date of the product and it is a non-principal
protected structured saving product so, again,
really high risk.
BINANCE LIQUID SWAP
Binance Liquid Swap runs on the simple rules
of liquidity pools.
It draws from the good sides of both the centralized
and decentralized finance system to offer
users high annual returns when they add liquidity
to liquidity pools on Binance.
Users are also allowed to swap their cryptocurrencies
in the liquidity pool.
With this, they can enjoy low slippage and
low handling fees.
However, this staking option is as risky as
it gets.
In fact, the first thing you see on the Liquid
Swap page is a risk warning.
You may one to take a good look at this warning
and be sure you are up for the risk before
diving in.
And that is it for this video guys.
Don’t forget to leave your comments and
questions in the comment section below and
I’ll be there chatting with you guys.
If there are any of these specific products
that you would like me to do a more detailed
tutorial for, let me know in the comment section
below as we couldn’t go all in on each one,
we’ll stay here for hours.
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