Binance Earn is the one-stop hub where Binance users can earn interest on their crypto assets within the exchange. Choose from dozens of crypto financial products, with over 60+ supported cryptocurrencies including Bitcoin, Ethereum, and their own BNB token.
I will expalin and show you around the different crypto financial products available, including the rates and terms. Plus how you can start earning interest on your crypto assets.
What is Binance Earn?
Binance Earn is a complete suite of products that are available to Binance customers. If you´re not already signed up to Binance exchange, you can use our referral code to receive a 20% discount on trading fees.
Essentially Binance Earn acts as your crypto savings account, where you’ll find a great variety of options for earning passive income with your crypto holdings. There’s a whole host of savings options available depending on your desired level of risk, term, and returns.
Plus you can stake your coins, lend your funds for interest, or safely deposit them into a DeFi service through Binance. To start using any of the Binance Earn solutions you’ll need to transfer your funds from your exchange spot wallet across to Binance Earn.
The different savings options available are split between Flexible Terms, Fixed Terms and High Risk Products.
Who is Binance?
Binance.com is an online exchange platform founded in China by Changpeng Zhao in 2017. Where you buy and sell cryptocurrencies using digital assets such as Bitcoin and Ethereum .
The Binance exchange is well known for its low trading fees, a wide range of available cryptocurrency pairings, and high liquidity. However, Binance has more recently become more than just an exchange and now offers a wide range of financial services to their customers.
Binance also has its own Binance Coin (BNB). This token allows you to receive discounts on the services of the Binance platform. Users of Binance can receive a 25% discount on trading fees, by paying with Binance’s BNB token.
Within Binance Earn the flexible options give users the opportunity to earn interest without having to lock in their funds for set periods of time. The interest rates will be lower with these options . However, these will come with a lower risk, plus the ability to withdraw at any time.
Flexible Savings offer Binance users the ability to deposit crypto and gain interest on a daily basis. This option is great for Crypto that may be just sat idle in your spot wallet otherwise.
With Flexible Savings there are currently 56 savings products. Users can currently earn up to 10% interest on the likes of 1INCH, BUSD, BAL, BTC, ETH and USDT.
Plus you can also auto-transfer which will automatically use your available spot wallet balance to purchase flexible savings.
With Launchpool, you can deposit the likes of BNB, BTC, and other cryptocurrencies to get a share of a new tokens that are being launched on Binance exchange.
Currently there are rates as high as 68.64%. You can view information such as the total rewards, the farming period and available tokens to stake for each event.
LaunchPool is deemed as flexible terms. This is because although you are locking up these tokens, you can still redeem them at any point during the event.
The BNB Vault is a BNB yield aggregator that combines Flexible Savings, BNB DeFi Staking and Launchpool to give you the best APY returns.
When you stake your BNB tokens, you will receive BNB Vault assets. These rewards will be sent to your spot wallet. With BNB Vault you have flexible terms, plus you can un-stake your funds.
Fixed Terms essentially means you’ll be depositing your funds for a specific “Fixed” period and on a regular basis. With fixed terms, you’ll find that the interest rates are higher than those available on Flexible Terms.
With Fixed savings, you deposit your crypto for fixed terms which are between 7 to 90 days. These rates will increase the longer you deposit your crypto for.
You can currently deposit the likes of USDT, BUSD and USDC. These deposits are currently at rates of up to 7% for a 90-day term. During this term, your crypto is locked in.
With Locked Staking, users can gain rewards through staking assets on the blockchain. There are around 30 staking products available which include the likes of staking tokens such as; 1INCH, SUSHI, YFI, ATOM, EOS and DASH with highest rate currently at 30%.
These products also come with minimum locked amounts too and vary in term lengths.
Activities are special events with limited supply and higher demand. Because they are generally at a capped supply, you sometimes need to be quick to subscribe.
There’s been around 155 of these activities events so far, with the highest rate being 88%. Activities can offer even higher returns than Fixed Savings usually does.
ETH 2.0 Staking
ETH 2.0 staking is another fixed term product and a safe and secure place for ETH staking, with up to 20% APY.
When you stake your ETH this can’t be redeemed during the first phase, which may take more than 2 years. However, Binance will regularly distribute on-chain rewards to all participants based on their BETH position (which is the token provided as proof of your staked ETH) in a 1:1 ratio.
Once the first phase is complete you can redeem your ETH. However, in the meantime, you can swap your BETH for ETH on a 1:1 basis. You can swap BETH back to ETH at any time, and receive the amount equivalent to your current BETH amount.
These products can offer some of the highest interest rates. However they do come at a higher risk and users should invest with caution, once they have fully understood the risks.
DeFi Staking is a way that you can access DEFI without having to manage your private keys, make trades or perform other complicated tasks required to participate in DeFi Staking. Decentralized Finance (DEFI) staking is a way of providing financial services to users through smart contracts and provide higher earnings for specific currencies.
Currently, the interest rates reach 8.79% for staking the likes of DAI. Plus they offer both flexible locking and fixed locking deposits. DeFi staking also comes with minimum lock amounts.
Dual Investments/Dual Savings are another way to earn, but this time it doesn’t matter which direction the price goes.
With Dual Savings, you deposit a cryptocurrency and earn a return based on two assets. You commit your holdings, lock in a yield, but earn more if the value of your holdings increases during the time that they’re locked up.
The annualised rates of return are as high as 160% (for BTC) and users can deposit BTC, BUSD or USDT.
Although the rate of return is fixed, the final settlement is determined based on the settlement price and the pegged price. Therefore, the risk associated with Dual Currency Investments mainly lies in the high rate of the market volatility. Users are advised to invest with caution, once they fully understand the risks.
The final high-risk savings option is Liquid Swap. This is where you can become a liquidity provider and can earn double rewards with rates up to 15.67%.
Liquid Swap also known as BSwap is obviously not risk-free either. When the market price of tokens fluctuate greatly, the staking income may be lower than the income of ordinarily holding the tokens, and losses may even occur at this point.
Trust Wallet is separate from the Binance platform, but it is their official digital wallet. Although I do use the Binance Earn features, I like to spread my risk and also use the Trust Wallet to stake BNB tokens. If you would like to find out more information, you can check out our Trust Wallet review.