In this Binance Earn review and tutorial, I show you around the crypto savings account by the popular cryptocurrency exchange Binance, offering high returns on your crypto assets.
What is Binance Earn?
Binance Earn is a complete suite of products that are available for Binance customers. Essentially, it 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 can 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?
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 is an Ethereum-based token that 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 fund for set periods of time. The interest rates will be lower with these options . However, will be lower risk and the ability to withdraw at any time.
Flexible Savings offers 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 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 token that’s being launched on Binance.
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 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 and can unstake your funds.
Fixed Terms essentially means you’ll be depositing your funds for a specific “Fixed” period and on a regular basis. You’ll find that the interest rates are higher than 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 again fixed terms and a safe and secure place for ETH staking with up to 20% APY.
Now when you do stake 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 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. This staking also comes within 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 160% 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 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 fluctuates greatly, the staking income may be lower than the income of ordinarily holding the tokens, and losses may even occur at this point.
How to Save on Binance Trading Fees
By signing up to Binance Exchange using this link or referral ID GPZ64I32, you will save 20% when trading. However, you can save up to 45% when using the Binance BNB token. To find out more on how to save 45% trading on Binance Exchange click here.