Sirwin
Sirwin

Let your money work for you in Binance Earn.


In CryptoLand, there are many opportunities to make money....
Some of them are degen plays which involves high risk gambits that could make or break your portfolio...
Some are safe and secure ways to make money relatively risk free...

Talking to my friends these past few days, I found out that many of them don't know about the Binance Earn and opportunities present...
That is why I decided to take sometime today to blog about it.

As always, before all this, I would like to stress out that I am not a financial advisor and I am in no way capable nor responsible to helping you in managing your finances... I am only here to share the opportunities present... It is up to you to research about it and understand the risks involved before taking part...

* I am not going into details about the risks of centralised exchange as that is a topic for another time... But I will be explaining a little bit about the risks that are present in each of the binance earn options.*

Moving on...

Binance earn tab is located on the finance toggle at the top of your computer screen when you enter the Binance website.

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After clicking the Binance earn tab you will see this...


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Binance has consolidated all the ways to earn money in their platform to one single convenient location...
BRILLIANT!!!

Now I will begin to explain each of the options available..

1. Flexible savings

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Flexible savings allow you to deposit various coins with them to earn interest. Interest is paid daily, the APY could range from 0.29% to 10% per annum .
The benefit for this is that, you can let your money that is sitting idly by accrue interest whilst waiting to be deployed to your next venture. Because you can deposit and redeem at any time there is inherently no risk here as you could quickly redeem your coins to sell or deploy to where you need them to be quickly...

2. Fixed terms
In this option you have 4 different options to earn... they are essentially the same as they involved you locking up your funds for a period of time. However the APY and mechanism of earning is different.

  • Locked savings

5f4302833134c1f8c87ffb906b4ddd692379aed3ff4f9b995fec3442c58bdf72.jpegThis option allows you to earn at a higher interest rate by locking up your funds for a period of days. But they do have restrictions to participate. For eg, Lot size (which is the minimum amount of coins you would need to purchase 1 lot to participate, eg: you would need 100 USDT/USDC/BUSD to participate in this locked savings as that is the minimum amount for 1 lot). There is also a cap for each individual to participate.

The risk here is that by locking up your funds you are unable to redeem them before the date is up, unless you want to lose all the interest that you have accrued to penalty. However as locked savings are mostly stable coins, there is no risk of the coin value dropping that would need you to redeem and react to the market quickly. Of course each stable coin has it's central point of failure and risk, but I would not go in depth about risk of stablecoins here. I will cover them in another post.

 

  • Activities

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Activities are limited time events that are highly ought after by Binancians. They allow you to lock your coins for a brief period of time for the best APYs available.
Like locked savings, they also have a minimum amount to participate which is usually around a couple hundred USD per lot (hence the higher level of entry). There is also a maximum lot cap for each individual like Locked savings.
The risk in this option is that most coins here are not stable coin and are subjected to price volatility.
Based on my personal observation, usually during the launching of activity of a coin, the coin will pump and nearing the end of activity the coin will dump. I believe the explanation for this is simple, people fomo in to buy the coins to participate and get the insane apys while arbitragers lie in wait to take profits before the end of the activity, by selling the coins. Most of the time I notice a coin may have 20 percent APY like BEL have a pump of more than 20 percent and then a dump before the activite ends. (Lets not forget, the APY is only 1.64 percent for those 30 days).
Therefore I feel buying coins to participate in the activity is not a wise option as the price volatility makes you lose more than the APY you gained.
However if you are a hodler of a coin that is coincidentally listed in the activity and you plan to keep hodling this coin for long term. Then this option is for you to stack more. Otherwise you are better off using this opportunity to get some profits from the price volatility that follows each coins activity.

 

  • Locked staking

8d6df3b816cf2196992aab72bef3f44728151ed8beff1cb388320a6077223108.jpegLocked staking is similar to locked savings but they tend to have better apy. Only Proof of Stake coins are available for this option.
There is also a minimum amount and duration required to participate in this. 
The risk are the same, you could experience price volatility (whether up or down) with no way to react because the coins are locked (not unless you choose to redeem them earlier thus burning all the interest accrued as a penalty).


  • Defi Staking

5313b9dce7eecc0a74c8a9d3acc7ef2577419541e6ef3775fad9d649336805d7.jpegThe last option in the fixed terms series is Defi Staking.
Defi means decentralised finance, I won't go into details here what Defi is here.
Binance allow it's users exposure to Defi via Defi staking.
Here you can locked your funds up either flexible or for a fixed duration to get exposure to Defi Smart contracts such as Curve or compound and get yield in return.
The risk here is that the smart contract vulnerability and security issues are not the responsibility of binance. So lets say you lock up 1000 DAI to compound and it get's exploited/hacked/rugg pull... Binance will not be liable for your lost funds.

Moving on to the next category 

3. Launchpool/Launchpad
080b469420d1e32bfce7fcb67642712b282dfd1e905f29bf860cce477e59ee3c.jpegd41fc2e2ac9142880d169df002f28c3d2c015dadc547c4d73f05a4213117b9ec.jpegLaunchpad and Launchpool are essentially the same thing, they are projects incubated by Binance using the Binance platform to launch into the market.
Binancians can participate in launchpads with their BNB. 50 BNB gets you one lottery tickets, maximum per person is 10 lottery tickets. If your lottery ticket wins, you are allowed to redeem the tokens by burning you BNB equivalent to the price of the amount of tokens you will get. Because 1 lottery ticket would require a user to have 50 BNB in their wallet this has a relatively high level of entry.

Launchpool on the other hand has a lower level of entry, it allows you to participate in the "pool mining" of the token by staking your coins, usually BNB and BUSD are present in the mix. Each coin has its own allocated percentage of the pool. Similar to "Activities", launchpool causes price volatility of the coins involved as people scramble to buy it to participate. Therefore if you already have those coins that you need to participate then go ahead. But buying coins just to participate is not advisable because you might lose more from price volatility of the coin you purchased.

 

4. Assets management

  • Liquid swap

785962031a1a47a0475ba83f476d854cb5e2a885b5688012e36e67ac393a4192.jpegLiquid swap is one of Binance's answer to DEX like Uniswap. 
It has cheaper fees and uses AMM to swap between underlying assets quickly and cheap.
You can provide liquidity to these pools here to generate yield from the fees. The benefits of this, most of the options are stable coins, so your Impermanent loss (aka divergence loss) due to the bonding curve is close to zero.
They have began adding innovation options which features coins with volatility. This gives better yield but comes with the inherent risk of divergence loss. 
My personal opinion is that this is one of the best stable coin yield generating opportunities out there with the safety of a centralised exchange. You can even participate in this if you don't have both of the coins. Just add one of the pair and the exchange system will automatically convert your funds to the needed coin to begin the liquidity providing and yield generating.

  • Dual Savings.

41af9de05057a2553a6564a6e097c39a8d13dbae7bcfa1af4f08aca85c683310.jpegTo be frank with you, Dual savings is one of the product that I would not recommend you to try unless you are truly able to grasp the concept and understand the inherent risk.
Essentially you try to hedge you position with 2 assets. When market is in an uptrend you will be able to get more stablecoin, and when market is in downtrend you will get more Bitcoin. For eg, you wager your 1 bitcoin for the 1st option that pays 82 percent APY (corrected amount for 15 days would be 3.369%). So lets say the strike price of 14500 was not achieved at the end of the contract, you will be paid back your 1 bitcoin + 3.369% yield in bitcoin. 
If however the closing price is above the strike price of 14500 then you will receive 14500 + 3.369% in BUSD. Meaning your 1 bitcoin is sold and given to you as BUSD with the yield... Now imagine if 20th November come and pass and bitcoin price closed above 14500 (which it did), now you just lose your one bitcoin which you could have sold for much higher.

Ok that's about it for now.
Feel free to tip me if you find my sharing useful.

This is my ETH address
0xB94513eB5791d0235231130b076263B2E73f9bda


If you do not have a Binance account then consider signing up with my link.
This will save you 10 percent in trading fees...
https://www.binance.com/en/register?ref=CKL8BYED

Thank you.

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MoonBoyBuffterin
MoonBoyBuffterin

Cryptocurrency enthusiast, hate scammers!!! Everyday I show you how to make money on crypto by showcasing what I am doing...


MoonBoy's CryptoEmporium
MoonBoy's CryptoEmporium

Hi, It is I, MoonBoy Buffterin... Cryptoenthusiast.... Here to share to you all the goodies crypto has to offer... Everyday I show you how you can make money in CryptoLand...

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