One of the most popularly searched keywords on the internet is "how to earn passive income". Do you agree?
Of course you agree, because you also at one time must have searched to seek the most wanted answer to that question.
If you are reading this article now, I have a question that I would like you to answer in the comment section.
Is earning passive income online a myth, mere fantasy or Is it really possible?
If you ask me, I can assure you that it is neither a myth, nor a mere but a reality only if you know how to go about it or have an idea of where to start a passive income earning stream.
In this article, let me guide you to discern the answer to the question- Passive Income in Crypto- Reality, Myth or Fantasy?
Before we begin, please note that the content of this article express my personal views based on careful research, study and life experience which I hope will be a helpful guide to anyone reading and should never be digested as financial advice.
Now let's race into the content of this article LIKE you see in the Formula1 race contests…Ready? Let's Zooomm.
If you like to invest in Crypto or attuned to the concepts of Crypto, here is a good idea that Binancians are using and you too can use to earn a passive income stream.
This article is based on one of the simplest ways to earn a passive income portfolio as an active crypto passive income earner, that is; Binance Savings.
FASTEN YOUR SEAT BELTS as we are about to race through the benefits of Binance Flexible and Locked Savings and how it works.
What Is Binance Flexible and Locked Savings ?
The concepts are somewhat related to the idea of Savings and Fixed Deposits in a financial institution.
In Crypto, Decentralized Finance (DeFi) and Centralized Finance (CeFi) offer an advanced interpretation of the banking sector and have similar but advanced financial options.
Binance Flexible Savings is like a Bank's Savings account, while Binance Locked Savings is a close mimic of a Bank's Fixed Deposit account.
Binance Flexible Savings
Binance offers this option for those who intend to earn a passive income from just HODLing or saving their crypto with Binance.
This means that when you subscribe to this Centralized Financial option, you opt to temporarily lock your crypto away from activities such as trading, transfer, or sending, but you are free to redeem it at any time.
Here comes the juicy part- passive income from the earned daily interests calculated at Annual Percentage Yield (APY) interest rates attributed to the crypto selected as each crypto has its own APY.
There are currently about 180 different crypto coins or tokens possible to earn passive income from in the Binance Flexible Savings.
Binance Locked Savings
Binance offers this option for those who intend to earn a passive income from Cryptos they have plans to save or HODL for a long period of time ranging from 7, 14, 30, 60, 90 and 120 days.
During this period the token or coin is locked from all crypto activities in order to earn at a higher daily APY interest rate than the normal flexible savings.
Note that it is possible to redeem your crypto at any time, but there's a penalty attached to non completion of the lock period.
The penalty includes a deduction of all accrued daily interests paid from your locked crypto and it may take around 24 - 48 hours to finally have access to use your crypto.
Binance currently offers over 15 different crypto assets to choose from in its Binance Locked Savings and just like in the flexible savings, each crypto asset has its own unique APY.
What exactly is the main difference between Binance Flexible Savings and Locked Savings?
If you read carefully, you would notice these highlighted points:
- For Flexible Savings the locked crypto can be redeemed anytime and access to your funds are credited immediately to your Spot account in real-time while Locked Savings,your saved crypto is locked for a certain period of time.
- There is no penalty for Flexible Savings while there is a penalty to lose all accrued daily interest earned and access to your crypto is delayed around 24 - 48 hrs before it is finally credited to your Binance Spot Wallet.
Benefits of the Binance Flexible and Locked Savings.
- Both Flexible and Locked Savings are great crypto financial tools to use during any Crypto cycle- whether a Bear Market or a Bull Market or an extended Bull or Bear Market as you earn a stable passive income.
- Another interesting benefit is the way Binance- the best crypto exchange has designed these crypto passive income tools by integrating the "Auto Transfer" button which initiates the opportunity to compound your daily interest. When you use this option, the earned daily interest that drops into your Binance Spot wallet is automatically added back to the initial locked crypto, thus adding an extra tweak to the accrued daily interest.
- There are promotions and offers open to Binance Savings users like periodic higher APYs and other rewards that you are sure to benefit from. Don't miss them!
- Enjoy a twist in the earnings for some crypto projects like $AXS that operate a tiered APY interest rate savings system from time to time. This means that according to the value of the crypto you are saving, a part of that crypto quantity is calculated at a higher APY rate and another remaining part at a lower APY rate.
For instance, let's say you subscribed to Flexible savings with 200 AXS; Binance depending on the tier APY interest rate, 100 AXS can have 12% and the remaining 100 AXS can be distributed to have 5% and 2% respectively which is interesting.
- For those who wish to have the Binance native token $BNB, there is the BNB Vault option for you.
The BNB VAULT is a special Flexible Savings product called BNB Vault. It allows you to get the benefits of multiple kinds of passive income. It combines the APY of Flexible Savings, $BNB DeFi Staking, and Launchpool (new token launch rewards) to give you the best possible APY returns.
Here is how to use the Binance Savings and Locked Savings tool on Binance:
The most important step:
Create a Binance account and complete verification using this link: http://www.accounts.binance.com/en/register?ref=65177765
Using that link guarantees you some benefits like lower transaction fees and some free BUSD (T&C applies)
Ignore this first step if you already have a Binance account.
- Log into Binance account;
- From the Homepage, navigate to the Binance Savings page under the Earn tab;
- Or simply use this direct link;
- Select any desired crypto available for Binance Savings and click the yellow subscribe button;
- Enter the subscription amount, agree to the Binance Savings Service Agreement;
- Use the "Confirm" option to complete the subscription process.
- Simply Go the Earn;
- Or simply use this direct link;
- Click the subscribe crypto option;
- Click the Redeem button;
- Choose one of the two options available;
- First option is Fast Redemption: If you click this, you will receive the full amount of your digital assets back immediately but without interest for that day for Flexible Savings.
- The second option is Standard Redemption: If you opt for this option, the full amount will be returned on the second day after redeeming which includes your earned interest for that day, and for Locked Savings, remember your accrued interests will be deducted as penalty if you redeem before the expiration of the locked period.
🎉 Congratulations in advance if you intend to subscribe to Binance Savings as a means to generate passive income to experience and make your dream to earn passive income a reality.
If you are interested in getting the step by step guide to subscribe to and redeem your crypto from Binance Flexible and Locked Savings, click here to assess the guide.
Passive Income in Crypto- Reality or Fantasy?
Knowledge is power; If you have knowledge of good crypto passive income ideas, then you will experience the joy of having multiple passive income streams as there are a whole lot of them in the crypto space.
From personal experience; it is a reality and this article carefully explains just one proof of the reality many Binance passive income earners are exposed to.
To gain access to other crypto passive income streams, it would be wise for you to Follow Binance on their social media handles on Twitter and Telegram and Telegram Announcement Channel to keep yourself up to date with newer passive income ideas, promos and options as Binance offers a whole range of them.
Do you have a better crypto passive income or a much easier one? Let's continue this discussion in the comment section where you can share your answers without reservation.
I am an active crypto enthusiast and very passionate about crypto and every opportunity in the crypto space; hence my regular research and writing of crypto educational articles.
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