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Binance Earn reviews: what is here and why is it needed?

The Binance Earn section is a set of financial products from the cryptocurrency exchange Binance (go online), aimed at users who would like to earn income from cryptocurrencies, but do not want to delve too deeply into this topic. Within the section there are services similar to those of “regular” banks and specific opportunities for passive and active earning on cryptocurrencies.

General information about Binance Earn

Binance Earn is posted at https://www.binance.com/en/earnBinance Earn, here, displays a number of income methods, divided by types of conditions – flexible, fixed and high-risk. In the section Binance Earn, you can find options for earning income from cryptocurrency deposited into a cryptocurrency exchange account. This can be passive income, practically just from keeping assets in the account, or active income, which implies constant control over transactions. But, most importantly, all types of earnings do not involve deep knowledge of the specifics of cryptocurrencies, which attracts to the section Binance Earn all those who want to invest or earn on cryptocurrencies, “without touching” them. This is roughly how the cryptocurrency exchange positions them.

Section “Flexible Terms”

Let’s look at ways to make money in the “Flexible Terms” section.

Floating rate deposits

Floating rate deposits allow you to earn interest on the money you have on deposit. The service is available to any user who has money on the spot account crypto exchanges. The user can withdraw funds from the deposit at any time. Interest on floating-rate deposits is calculated from the income from margin trading (the account holder practically lends money for margin trading). A floating rate deposit, technically, is analogous to a demand deposit with a savings bank. Interest on the deposit starts accruing the next day after subscription, the funds are credited to the account in real time. How much you can earn with floating-rate deposits can be roughly calculated based on the average daily interest rate for the last seven days multiplied by 365.

Despite the simplicity and attractiveness of deposits with a floating rate after a superficial acquaintance, it is necessary to study very carefully the conditions under which interest is accrued, on what they depend and what are the conditions for withdrawal. For example, you should know that with a quick redemption, the user receives the full amount of assets back on the day of redemption without interest. You should also know that the asset/individual maximum/quick redemption limit and the total deposit quota change depending on market conditions and risk levels, and so on. In addition, there are restrictions on the maximum amount per deposit.

Launchpool

Also among flexible earning methods is Launchpool, which is asset stacking for new tokens. The essence is that users are rewarded for placing cryptoassets in DeFi projects (decentralized financial projects), in this case providing liquidity to the pool. Launchpool is a format for generating passive income. Token developers sort of solicit through a platform on the Binance cryptocurrency exchange, and users fund, in financial terms, through an “initial exchange offer” (IEO). Technically, users block funds in the liquidity pools, which ensures that tokens are mined and, consequently, the user’s income grows, which receives a share of the token run on Binance. Users can return blocked funds at any time while token mining is going on. In principle, knowledge of the cryptocurrency industry is not necessary for earning at Launchpool, although it won’t hurt in terms of evaluating token-emitting projects. The exchange positions Launchpool as a way to make money safely, but warns of the risks – and you don’t want to ignore them. In terms of earning, Launchpool depends not only on the exchange, but also on the value of the token and its prospects, and this cannot be completely predicted. It should also be recalled that Binance had problems with withdrawals from the Launchpool service.

BNB Vault

BNB Vault is a specific development – an aggregator of BNB returns. It consolidates several types of earnings – floating rate deposits, DeFi-stacking BNB and Launchpool. BNB Vault is positioned as a guaranteed “one-click” earnings on internal cryptocurrency crypto exchanges – BNB. Indeed, it is easy to start earning this way and the earning formula – “BNB Vault daily income = new Launchpool tokens + BNB floating rate deposits + DeFi-stacking and other financial assets” – looks attractive. But objectively, it’s a complex, integrated, method that combines multidirectional ways of earning and you need to read all the terms and conditions of the BNB Vault carefully. The annual percentage yield ranges from 5% to 10%, but it is adjusted for the actual income and risk level of the assets involved in the BNB Vault. Since Binance “guarantees” income, it is advisable to focus on the selection of assets on which you plan to earn in the BNB Vault, the conditions of interest accrual and the conditions of withdrawal of earned – with interest – money. Income, of course, can be guaranteed, but far from the desired and disappointing, if you do not pay attention to the details.

Section “Fixed Terms”

Consider deposits with fixed terms.

Fixed rate deposits

The fixed-rate deposits page can be found here: https://www.binance.com/ru/savings#lending-fixeddeposits . A fixed rate means that deposits can only be opened for a fixed period of time, in the sense that funds are blocked at the time interest accrues. If you close the account before the deadline, the profit in the form of accrued interest, disappears. But fixed deposits have higher interest rates than floating-rate deposits, so the profit on fixed-rate deposits is higher than on deposits with flexible terms. It is fully an investment tool, with minimized exposure to randomness. Term of fixed-rate deposits is from 7 to 90 days.

A fixed-rate deposit is selected by duration and annual interest rate. The value date – the date on which interest begins to accrue – and the maturity date – the value date plus the duration of the deposit must be taken into account. Funds from the spot wallet go to the deposit account automatically. Repayment is also automatic on the appropriate date, the amount and interest are transferred to the spot account (Spot Trading on a Cryptocurrency Exchange). Apart from the fact that the asset for deposits is cryptocurrency, there are almost no other differences from similar bank products. Therefore, anyone can try to profit from cryptocurrency. Which does not negate the need to get acquainted with the terms and conditions of fixed-rate deposits. By the way, fixed deposits can be converted into deposits with floating rate. This can be done if you need to redeem the deposits earlier. But after the transfer, the interest on fixed deposits, transferred to deposits with floating rate, is not distributed. You can redeem the funds at once. Interest on new deposit with floating rate is calculated from the next day and paid out, respectively, from the third day after transfer.

Steaking

Consider the types of steaking available.

Fixed steaking

Steaking is a way to earn rewards when holding cryptocurrencies in a wallet, related to the concept of Proof of Stake. But you may not know the technical details of the process itself if you use a fixed staking service to make profits on the Binance cryptocurrency exchange. Staking can be a truly passive way of income, but the correlation is standard – the more you invest, the more you get. That said, steaking is characterized by the fact that the 100% coin holder will make a profit as long as the blockchain is functioning. Stacking supports Binance’s blockchain, but deposits do not run on the blockchain but are a financial service available to any user. The interest earned on the deposit is generated from loans and margin trading in which the user does not participate, so for a fixed-stacking investor, this service is no more complicated than investing in some traditional banking product or investing in deposits, fixed or floating rate on Binance.

Getting profits directly from staking varies in time, for example, DOT staking lasts 28 days. But on Binance the process of distribution of funds takes one day, though Binance can still adjust the time of the process depending on the staking of the cryptocurrency. Also, the exchange does not determine the annual yield of staking, this figure is adjusted daily according to the reward for staking, and the specific yield per day is listed directly on the product page. After signing up for a fixed staking, funds are withdrawn to the deposit of this product, interest will begin to accrue from the second day, the interest is distributed daily.

If there is a need to finish using this product before the deadline, the funds will be unblocked for 1 day, and the funds will be received after another 1 day. But withdrawing funds before the deadline will not allow you to keep the interest earned. Despite the fact that no special knowledge about cryptocurrencies is needed on steaking at Binance, but the user will be able to get a better idea of the potential income or see the possible difficulties, if he tries to learn more about steaking after all. For the exchange and for token issuers, the main thing is for users to come and hold coins, this allows them to develop. For the user, the main thing is to make money, to grow income. With that in mind, it is better to be more thoughtful about investing in stacking.

ETH Steaking

Ethereum steaking occupies a separate subsection in the “Fixed Terms” section. In the future, the etherium system may completely switch to steaking, and Binance already has such a mining process in place. The basis of stacking is the BETH token, which corresponds to ETH in price. You can exchange ETH to BETH, and you can exchange BETH to ETH after the launch of ETH 2.0 network. You should also be aware that Binance does not calculate annual returns, the rewards depend on the ETH system. Many are counting on the launch of ETH stacking, calling it even a tipping point for the crypto industry. The second most powerful cryptocurrency will become easier, transactions will speed up and their price will decrease. So, Binance clients have an opportunity to get connected to the new way of ether generation before anyone else and make money from it.

Stocks

Shares are a subsection of ways to make money on Binance in the “Fixed Terms” section. Promotions are some significant events on which the user of the cryptocurrency exchange can also earn. What kind of events is not important, what is important is the conditions offered. In most cases, the offer, limited, but the yield is higher than other financial products. The main problem of earning on stocks – in time to see the event, the announcement, the announcement, to take part in a timely manner, they need to be constantly monitored. On the promotions page, there is a drop-down menu at the top right where you can view promotions by status. In addition, it is important what coin the event is associated with, you should pay attention to such parameters as the lock-in period, the annual interest rate, the duration of the promotion in days. When a certain promotion appears in the section, then, after studying the conditions, you will need to click on the transfer asset button next to the desired promotion, specify the number of tokens held. The system will calculate the interest income after the closing of the promotion and transfer the earned funds to the spot wallet automatically.

High-risk products” section

The name of the next section of earning at Binance Crypto Exchange speaks for itself. Here you can earn more on financial products than in other sections, but at the risk of losing everything. It is advisable to go to this section if the user is confident in his abilities, understands financial products, has skills of trading and investing, and also has an impressive deposit (crypto trading in 2021). And in any case, has time-management skills and is ready to calmly accept the inevitable losses before the snapping up the jackpot. It is also necessary to carefully read the warning about the risks of earning, the main idea of which is that “Binance is not responsible for any losses that the user may incur due to problems with the security of on-chain contracts”, as “Binance operates exclusively as a platform for presenting projects and providing users with related services”.

DeFi-stacking

DeFi projects themselves are a risky way to earn money, and Binance offers to earn from such projects, providing access to them to almost any user, including those who are not qualified to invest in DeFi. The client avoids complicated operations such as private key management and does not need to make transactions, upload his wallet, etc. Which actually increases the risk even more, as the user may not have a basic understanding of DeFi. There is a rather high financial threshold to start DeFi-stacking at Binance. Tokens are blocked for a certain period of time, if you try to withdraw funds before the designated deadline, rewards will be lost. Each of the DeFi-stacking projects has peculiarities, so you should carefully familiarize yourself with the conditions of each of the projects.

After the funds are credited for earning on steaking, the profit will be calculated from the next day, the minimum period of profit calculation is one day, the blocking period for normal products is also one day. Unblocking and crediting of earned funds to the account occurs the next day, – in standard cases. But they may vary in each case. When participating in steaking, it is necessary to accurately calculate the blocking time, because if you close early, the user will not only not get the earned money, but even less than the invested money. This is due to the technical peculiarities of the stacking process. Assets are locked in a smart contract, to “take out” the invested asset, you need to take certain extra-programmed actions, for which the user will receive a penalty – a deduction from the earned assets. DeFi-stacking income terms are attractive, for example, the latest offering, in April, DeFi-stacking USDC, HARD and XVS, yields up to 37.36% per annum. And the BUSD and USDT annual returns increased to 27,23% and 26,31%, plus the addition of additional subscription quotas. But we should not forget about the risks.

Bicurrency investments

To enter the “Bicurrency Investments” subsection, you need to have an account on a cryptocurrency exchange. Bicurrency investments is an aggregator of income from two assets, it is implied that income is possible regardless of which direction the price goes. Dual Deposits involves subscribing to a product through a single asset. When the product expires, the user settles on one of the two selected assets, at expiration, the total is calculated on the settlement price and on the strike price, the profit is calculated on the selected asset. The exchange positions the Bi-currency investments as the most highly profitable tool, however, the profit cannot be guaranteed 100% and also the deposit cannot be cancelled prematurely after the subscription. The return on an asset depends on the dynamics of the cryptocurrency market from the day of investment. Naturally, the income grows when the trend is upward, but faster and more on two assets. But if the trend is downtrending, the user seems to get income as well, since the profit is calculated in favor of the client.

This asset is not only risky, but also difficult for unqualified investors. When calculating profits, it is important: the start date of the deposit – the date of deposit (all invested funds must be placed in the user’s wallet), the end date – which implies repayment of the deposit itself and interest in bitcoins and BUSD tokens. You should also know that the settlement price is the value of the cryptocurrency on the expiration date and is a weighted average of the BTC-USD spot prices on Bitstamp exchanges, Bittrex, Coinbase Pro, Gemini, Kraken, Itbit and LMAX Digital. And the strike price is the threshold price that determines the type of income. An example of using the double deposit instrument may look like this, in the case of investing in BTC: if the BTC price is higher than the strike price, the user can get income in BUSD, so BTC can be sold at a higher spot price, if it is not, the user gets BTC with interest. Theoretically, regardless of market movements, Binance Double Deposits does look like a guarantee of the greatest profit from deposits on the deposit exchange. And it seems that in any case user receives profit, which allows estimating this service as peculiar risk hedging.

But the cryptocurrency itself still put this way of earning in the list of high-risk, and probably for a good reason. The problem is the complexity of the asset, the difficulty of calculating the behavior of a double deposit and the fact that it is impossible to withdraw the asset before the expiration of the deposit period. But, most importantly, the profit, even from two deposits may not be what you expected. For example, if the execution price set by the Binance exchange is $50,000 per bitcoin, the user will receive BUSD tokens along with accrued interest on the due date only if the bitcoin exchange rate is above $50,000 at that particular time. If the price is lower, there will be no profit, but still a loss. And because a positive bitcoin price may change into a negative trend, the double deposit may lead to significant losses. It turns out that double deposit is just a complex bet on bitcoin exchange rate, and you need to think carefully whether it is worth considering as a method of hedging or a passive income. Or, at the very least, you need to keep a close eye on the BTC exchange rate. In any case, such a tool as bicurrency investments, although available to any user, still implies a certain familiarity with the crypto market and the ability to calculate the risks.

Binance Liquid Swap

Liquid Swap is a simple, but actually complicated way of earning, which has received a special warning from the exchange, signed by the user. Binance reminds us that when the market price fluctuates, the income from steaking can be lower than the income from regular token ownership – that’s where the losses can come from. The threat of loss is even greater because Binance has made it as easy as possible to quickly convert funds from one asset to another (optimally, into stabelcoins). On specialized platforms of market-makers (AMM) the process is more complicated, it includes management of purses, payment of commissions, etc. Binance Liquid Swap is a simplified automatic AMM, the income comes from placing in a common pool of liquidity to earn rents from investments as well as commissions from trades made on this AMM.

Liquid Swap is considered to have more stable cryptocurrency rates and minimal commissions. Binance does not support AMM for all cryptocurrencies represented on the exchange, only a few, as well as fiat EUR, GBP, AUD. Each coin is limited by the minimum and maximum amount of entry into the pool. When performing a transaction, Binance will again ask for confirmation that the user understands how Liquid Swap works. Binance has two pools, Stable and Innovative. The first has a limited selection of pairs, which should bring a guaranteed profit. Innovation pool has more pairs, income is calculated on floating rate, risks increase. Unlike most other earning tools, with Liquid Swap you can withdraw the accrued interest at any time.

Will I be able to make money on Binance Earn?

Binance Earn section should help users who do not know much about cryptocurrencies, but know that with their help you can now earn good money. Almost every earning tool the exchange describes as uncomplicated, almost every method supposedly gives a “guaranteed income”. But it is better to treat such statements critically. At a minimum, you need to understand how the usual traditional tools of income from investments work, for example, in the bank. But it is better if, before giving money to work, the user is still interested in what cryptocurrencies are, their features and the instruments of earning. Because, for example, any tools depend on the price dynamics of cryptocurrencies, which is characterized by volatility. A number of earning methods are not available at all to those who are unfamiliar with cryptocurrencies. Some products with guaranteed income lead to losses under certain conditions. Also, none of the products will bring income in passive mode, if you let the process run its course – you need to monitor the situation. You must also necessarily take into account the rules of the exchange, the limits, the need for verification, user feedback on specific ways of earning, and many other things. In case the user has thoroughly understood how a certain earning tool works and more or less oriented on the crypto market in general, and how a crypto exchange works, then Binance Earn can be a way to earn money over time, but one should not expect any super profits without difficulty.

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