If you’re looking to know how to make money with cryptos, this is your complete guide to staking on Binance. We will show you step-by-step how to navigate throughout the platform, and earn passive income with crypto 😉
In the financial world, some investors seek high-risk investments because they also come with high returns. They also tend to mix those risky investments with safe ones, in order to minimize their risk. Traditionally, investors used to have saving accounts that yielded them interests. In today’s economies, advanced countries’ interest rates average around 2% per year. You can forget about thinking to invest in risky countries that are either corrupt, poor, or that have been sanctioned.
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What is Crypto Staking?
Enter cryptocurrency staking, which is the exact same thing people do in the “traditional financial world”. Instead of locking money with banks, they lock an amount in a cryptocurrency wallet and earn high yields. In turn, they participate in the operation of a Proof-of-Staking based blockchain system. Different cryptos have different yields and maturities.
Crypto Staking Risks
“Awesome! I want to stake all my savings in cryptos!” you might be saying. Well, hold your horses, staking does come with certain risks:
- Slashing problems: when your validator is being punished by the network for abnormal behaviors (ie. technical problems occur)
- Crypto price depreciation: When you stake, you lock cryptos. Let’s say you froze 100$ worth of X, to yield 10%. Sweet, 10$ profits! Then because of cryptocurrency volatility, the worth of X becomes 10$, yielding in turn 1$…NOT SWEET!
- Lost accounts: Yes, this might occur as many hackers are on the hunt for weak security standards. Recently, an exchange got hacked and you can read about it here.
- Network Centralization: aka the 51% attack, which takes ahold of the whole blockchain.
- Validators “forgetting” to pay rewards: Just like you would follow up on your bank fees, you should follow up on when your interest is paid up, as sometimes technical glitches might happen.
Nevertheless, some exchanges did prove to be worthy of investors’ trust and solid businesses. You should always be on the lookout for companies that listen to their customers, have awesome customer support, and are expanding regularly. Binance is one example of such reputable exchanges, and that’s why we’re going to show you a step-by-step guide on how to stake with them.
How to Stake on Binance
1- Sign in/Sign up to your Binance account (much hard)
2- Go to Finance / Binance Earn tab
3- Scroll down to Fixed Terms, Click on Staking, then click on View More to see a list of staking options
4- You will then see a list of staking options by cryptocurrency, est. APY, duration, and the minimum amount to be locked. Click on the Stake now button for the desired crypto.
5- You will see a modal window opening with the option to input your desired amount to stake, along with the final terms. Click “Confirm Purchase” and you’re all set!
Staking is a very good investment idea that yields high returns. Although it might seem attractive, investors are advised to be wary of the risks associated with this type of investment, specifically the market volatility aspect. Binance is very good exchange, and so far they proved to be worthy of their reputation.
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