Binance offers you different opportunities to put your crypto to work, a great way to generate passive income streams. In general, the interest rates in crypto are much higher than the meager interest rates from your local bank.
I already wrote about the TOP 5 Features On Binance You Need To Know. In this post, I am giving you an overview of the different earn and savings products on Binance.
Flexible Savings And Fixed Savings
First of all, Binance offers flexible and fixed savings. Flexible Savings lets you earn interest on your funds. You can deposit your funds, earn interest, and redeem them at any time. binance currently offers 56 different flexible Savings products in total.
If you are holding some crypto in your Spot Wallet, you can simply deposit it into the Flexible Savings account. In this way, you can put your crypto to work with the flexibility that you can access your funds at any time.
The first daily interest payment is calculated from the next day after your subscription.
Fixed Savings, on the other hand, are offering you better returns but less flexibility when it comes to accessing your funds. The difference here is that you’ll set a predetermined duration for your funds to accrue interest. Why is this better? Well, this will give you generally higher interest rates than Flexible Savings products since the term and interest rate are both fixed.
Fixed Savings products can range from 7 to 90 days. This means that if you don’t need your funds elsewhere for a certain period of time, you can lock them to earn a higher APY. At the moment, you can only choose between these three stable coins for locked savings.
There are also lending activities taking place on Binance. These are special events that pop up from time to time under the Activities tab. These lending activities on Binance generally have a capped supply. This means that you will need to be quick to subscribe because these lending activities offer even higher returns than Fixed Savings usually does.
These lending products are quite similar to Fixed Savings but you can get higher rewards if you keep up with what’s happening under the Activities tab.
Flexible And Locked Staking
The next opportunity to generate passive income on Binance is Locked Staking. This only works with Proof of Stake coins in your Spot Wallet.
You can earn staking rewards on your holdings simply by holding them in your spot wallet. However, there is a way to earn higher rewards on staking.
If you commit your Proof of Stake coins to be locked for a certain period of time ranging from 7 to 90 days, you can earn higher staking rewards. This is essentially the same deal like with Flexible and Fixed Savings but this time with staking.
Some staking coins will also allow you to do a Flexible Lock. You commit your funds for staking, but you still maintain the ability to withdraw if you want to.
The locked staking feature on Binance also includes Ethereum 2.0 staking. Please note, that your stake cannot be redeemed during the first phase which may take more than two years.
Launchpool And $BNB Vault
The Binance Launchpool and the $BNB Vault are two other possibilities to generate passive income on Binance, especially when you are holding $BNB. I have already mentioned them in one of my previous posts TOP 5 Features On Binance You Need To Know
The Binance Launchpool is issuing and launching new tokens. You can earn them by staking certain cryptocurrencies in the Binance Launchpool.
You can always earn something by staking $BNB. At the moment, you can earn $LIT, a decentralized cross-chain identity aggregator, and $BTCST, a liquidity token for Bitcoin Mining Power.
The $BNB Vault is a $BNB yield aggregator. Staking $BNB in the Vault means participating in Launchpool, Savings, Defi staking, and other projects and at the same time gaining rewards. When you deposit $BNB into the Vault, your rewards will be distributed the next day.
You will receive your Savings interest from the Vault on a daily basis, and the income will be calculated on the second day. Over time, you can farm a nice variety of different coins including $BNB Savings rewards on top.
Launchpool and BNB Vault are both great ways to earn some passive income on Binance. as the cost of getting the new tokens is only the opportunity cost of locking your tokens. Even so, you can redeem them at any time!
Advanced Savings Options
The Asset Management tab on Binance gives you access to some more advanced savings products. These advanced products include the Binance Liquid Swap and Dual Savings These may be advanced products but they are still quite easy to use.
The Binance Liquid Swap is a special type of exchange that prices assets according to a mathematical formula instead of an order book. It is somewhat similar to Uniswap or Curve Finance, but it is operated by Binance. It’s a dead-simple way to quickly convert between assets such as stablecoins with low fees and slippage.
Now like Uniswap and other AMMs, you can also become a market maker. Just deposit one of the supported stablecoins, and start earning interest.
Binance Dual Savings is a way to earn some passive income no matter which direction the price goes. Dual Savings lets you maximize yield on your savings while minimizing price risk. You can deposit a cryptocurrency and earn a return based on two assets. You commit your holdings, lock in a yield. You will earn more if the value of your holdings increases during the time being locked up.
My Final Words
If you decide to earn passive income on Binance, I can give you one last piece of advice. Don`t put all your crypto savings in your Binance account. Diversification is not only important when it comes to your portfolio but also when it comes to your investments. In this way, you can spread your risks out. In case something goes wrong with your investment or the platform your funds are on, then you don`t carry all your eggs in one bag if you know what I mean. Besides Binance, you can and should also use other platforms like BlockFi and CakeDeFi to generate passive income streams on your crypto holdings.
At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of passive income opportunities on Binance and my intention is not to replace your own research. However, it really reflects my own opinion.
If you are not registered on Binance yet, you can use my referral link with the code E3PGAJCE for signing up. When you use it, it will save you trading fees each time you perform a trade on Binance. Don`t forget about this possibility when you introduce a friend to cryptocurrency as it will save both of you some money.
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