Passive Income
Passive income is what almost all people dream of, earning without doing anything, or earning and at the same time dedicating ourselves to other things, becoming more productive.
There are many applications that allow you to earn passive interest on crypto, such as Celsius Network or Nexo, however today we are going to talk about passive earnings that derive directly from Binance.
Binance Earn
Binance Earn is definitely the best known and easiest to use method on Binance.
The yields are divided into two groups, flexible or blocked, the flexible ones have obviously lower yields because they are not tied.
Binance Earn in turn is divided into 5 subgroups:
-Savings
-Locked staking
-Launchpool
-BNB Vault
-Staking ETH 2.0.
As for Savings, the operation is very simple, we go to use the deposits we have on Binance and put them on an income basis.
Flexible savings consist of renting our cryptocurrencies with lower interest but we can take them out whenever we want.
Locked savings, as the word itself says, block our crypto for a certain period, usually 7, 14, 30 or 90 days in exchange for higher interest.
Finally we have the so-called Activities or that sometimes, a certain interest comes out, on a certain cryptocurrency, which has a limited duration and a maximum limit put on an annuity.
We tend to find products with very high yields here, so if we are skilled and fast, we can take part in these projects and get more interests.
Locked Staking
Here we deal with the real staking, where we can find cryptocurrencies that are based on the Proof of Stake in which we earn interest if we lock the Coins in our wallet.
The returns are generally excellent but we are dealing with very volatile crypto so with the risk of losing more than we have earned with interest.
Launchpool
Let's start with the fact that this tool is not always available, as it only exists with the arrival of new cryptocurrencies.
The Launchpool allows us to farm all those new crypto by depositing in a pool, usually BNB or Busd or sometimes even other crypto.
Recent launchpools have been organized for TLM and Alice.
This is really a valid way to take advantage of these opportunities, because by going to earn crypto, we have the opportunity to earn much more money if that crypto rises so much in value!
BNB Vault
This is, as the word itself says, dedicated to BNB holders, as you only need to deposit BNB, with no restrictions or fees to pay and you get a return.
It is not a normal return as Binance optimizes the return by distributing it among the rewards of Binance Savings, Launchpool and any other rewards available at that time.
The yield is low, this is due to its ease of use and freedom, this is a product intended for lazy people.
ETH 2.0
Finally, as regards Ethereum, Binance offers us the possibility of staking on ETH 2.0.
Here we can go and bind our Ethereum until ETH 2.0 comes out or Binance offers us the possibility to earn BETH in a flexible way, BETH is a crypto that we can already sell but it is not convenient since it has less value than Ethereum and therefore it is better to wait. because we will be able to exchange it for ETH 2.0 when it comes out.
I'm not a big fan of this method of earning.
Binance Card
It is not a real passive income, but thanks to the cashback that Binance offers us, we will be able to recover part of the expenses we face with our Binance Visa card.
The cashback increases with the increase of the BNB we hold in our portfolios.
Liquid Swap
This product allows us to offer liquidity to pairs of coins or stablecoins, earning a percentage on transactions.
It offers very high interests but we must be careful of two things: the yield that we see written, changes continuously as the volume of the last 24 hours changes, in addition we must be careful of the volatility of the coins since going to give liquidity to risky pairs of coins, we will have a higher yield, but if the coin loses value, we will still make a loss.
If you want to use this tool, I recommend using it on Stablecoin pairs or on coins of the same value such as BTC / WBTC, BUSD / USDT, USDC / USDT.
