Binance Soft Staking: how to easily earn from PoS

Binance Soft Staking: how to easily earn from PoS

By Cryptomar | CryptoTech | 6 Feb 2020


In my previous article "Staking: what it is and how to increase our profits with PoS coins" I introduced the topic of Proof of Stakes cryptocurrencies and how it is possible to earn through the staking of these currencies in a simple way, without necessarily having to create super powerful systems to mine currencies through Proof of Work systems.

In reality, cryptocurrency staking still requires some basic technical knowledge. Normally the "standard" procedure for starting PoS mining involves:

  • buy a certain amount of the PoS cryptocurrency you wish to mine
  • download the official wallet on which to transfer the currency from the exchange from which we purchased it
  • perform some specific steps to enable staking (vary from wallet to wallet)
  • leave your computer running with the wallet open 24/7

The yield of PoS mining is directly proportional to the quantity of currency put in staking: being based on a percentage value (also variable from currency to currency, based on how much the developers have evaluated to want to keep the inflation), the greater the amount of currency held on the wallet, the higher the yield of our mining.

Although in the case of PoS mining the system therefore does not actually perform any operation that may require a large computing power, for which it would be necessary to invest a lot of money both in equipment and in electricity costs, it is still necessary that our computer remains running 24/7 with the wallet open and constantly connected to the network in order to actively participate in mining and obtain its rewards.

Furthermore, depending on the currency, the mining algorithm used and the amount of currency put in staking, whole days may pass before seeing the ravenues of our staking activity.

An example of Qtum wallet staking activities.

An example of Qtum wallet staking screen

 

There is also one last aspect to consider, namely that traditional PoS needs to keep the amount of currency that I want to use for the mining process blocked, with rather long unlock times in case you want to move your coins from the wallet. This aspect is very important to consider in a context in which the cryptocurrency market is subject to high levels of volatility: based on the price fluctuations of our currencies we may find ourselves in the position of perhaps wanting to sell a certain quantity and therefore find ourselves unable to be able to do it quickly. Often those who do PoS mining decide to keep a part of their currencies "liquid" in the wallets or exchanges and to stake only a percentage of their assets in order not to remain completely stuck based on market movements, a definitely not ideal situation.

 

The Soft Staking solution

So let's imagine if it were possible to take advantage of the benefits of staking, without however having the limit of having to keep your wallet constantly running or the concern of keeping your coins locked. Someone must have thought about it and for some time now you can fine similar services online, the so-called Staking Pools. Specifically, these are platforms in which you can transfer your PoS cryptocurrencies, which will be put together to create large pools and receiving interest in exchange proportionally to the amount of coins deposited. These systems help solve the problem of leaving your wallet constantly open, at the price, however, of renouncing to full control your savings, which will be deposited on third-party wallets of which you will never have full control.

It may seems difficult to find an ideal solution to obtain returns from PoS mining without renouncing the liquidity of one's savings and the security and reliability of owning one's own currencies. Fortunately, some large exchanges have decided to make a staking service available to their customers that revolutionizes and solves most of the weaknesses of the Proof-of-Stakes systems in a single solution. Binance Staking is the staking service offered for some time by Binance, one of the most famous and reliable cryptocurrency exchanges. The platform is connected directly to the wallets of your Binance account and allows you to take advantage of the ravenues of the supported coins simply by keeping the desired quantity within the exchange wallets, without being required to lock a certain quantity for a minimum period of time: maximum liquidity guaranteed, with the possibility to carry out trading operations without limitations and in real time and therefore to be able to take advantage of the PoS mining returns at the same time and to safely evaluate the movement of our own savings based on market trends.

The Binance Staking platform

The Binance Staking Platform

 

Staking on Binance is really easy and doesn't need any tech knowledge other that been able to buy and deposit cryptos on Binance wallet and keep them. The only difference is that Binance distributes the returns from soft staking once a month in a cumulative way, rather than at every block solved as would happen by staking through the official wallets. However, this is a small limit when compared to the advantage of having no limits related to traditional unlock periods.The returns of the platform are in line with those expected for the staking of the specific currencies supported and it is easy to keep track of the monthly distribution of returns and the percentage of interest month by month.

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An example of Tron historical yeld on Binance Staking

 

This is the list of coins currently supported by the platform and expected returns (EAY):

  • Stellar Lumens: EAY 2%-4% Min Holdings 10 XLM
  • Elrond: EAY 3% - 4% Min Holdings 700 ERD
  • NEO: EAY 1% - 3% Min Holdings 0 NEO
  • Ontology: EAY 3% - 5% Min Holdings 0.1 ONT
  • Vechain: EAY 3% - 5% Min Holdings 1 VET
  • Komodo: EAY 5% - 6% Min Holdings 1 KMD
  • QTUM: EAY 6% - 8% Min Holdings 1 QTUM
  • Stratis: EAY 1% - 2% Min Holdings 2 STRAT
  • Fetch.ai: EAY 8% - 12% Min Holdings 25 FET
  • ONE: EAY 8% - 10% Min Holdings 175 ONE
  • Algorand: EAY 16% - 20% Min Holdings 2 ALGO
  • TRON: EAY 7% - 9% Min Holdings 5 TRX
  • ATOM: EAY 6% - 9% Min Holdings 0.5 ATOM
  • Tezos: EAY 6% - 7% Min Holdings 1 XTZ
  • KAVA: EAY 14% - 16% Min Holdings 1 KAVA
  • LOOM: EAY 10% - 12% Min Holdings 60 LOOM
  • THETA: EAY 1% - 2% Min Holdings 10 THETA

Here it is, as simple as it seems. Obviously, remember that keeping your cryptocurrencies on an exchange, however reliable and known, still remains a risk in case of hacking the platform, even if Binance has already shown in the past that it can deal with similar situations without exposing its customers to losses of its assets. But if you want to dedicate a part of your crypto assets to seek earnings through staking, the dedicated Binance platform is one of the safest, simplest and most intuitive solutions to use.

 

 


Cryptomar
Cryptomar

My interests: tecnology, computers, finance. The synthesis of everything is simple: blockchain.


CryptoTech
CryptoTech

All about Cryptocurrencies and Technology.

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