26.12.22

Today’s crypto trading spotlight deals with Beacon Ethereum, which is basically Ethereum, but on the Beacon chain. The Beacon chain will introduce Proof-of-Stake to the Ethereum Network.

This trading spotlight is a bit different then others, as it is way more long term and only focused on Binance. On Binance you can trade the BETH/ETH pair, which is the exchange rate between ETH on the main chain and ETH on the Beacon chain. 

Basically the value should be about 1:1 as it is basically the same crypto, but it will only be possible to redeem the BETH for ETH at a valuation of 1:1 when the Ethereum network gets upgraded to the Proof-of-Stake network. This can take a lot more months, depending on the progress of the Ethereum Foundation. 

So if you plan to hold Ethereum for the long term and maybe earn some ETH as staking rewards I got an idea that may help you get some more ETH for your bucks.

The trading pair BETH/ETH on Binance, which you can see in the trading chart below is at about 0.9546. This means for 1 ETH you will get 1.0454 BETH.

So basically you pay less for 1 ETH and also can get staking rewards, which are paid daily in BETH. 

You can either decide stack up your BETH and wait for the proof-of-stake upgrade to redeem your ETH or you look for the exchange rate to come closer to 1:1 and get the difference as “profit”.

A good level to exchange ETH for BETH would be somewhere between 0.90 - 0.95 based on the recent history of the exchange rate. The volume is about $700k in recent days, so it is not possible to make millions in a day like it would be possible in some futures markets. It is a good way to make some profit though.

I hope this helps, have a nice day!

Niklas

Feel free to visit my website at niklasschomaker.com. This is not financial advice, it is for educational purposes only!