Take a look at this article to find out how to stake on Binance and collect rewards with tokens held on the platform's wallet.
Binance has over 100 tokens and over 300 trading pairs in its catalog. The platform offers comprehensive cryptocurrency-based services and has the advantage of being extremely secure.
In addition to buying and selling virtual currencies, users can also use Binance to perform crypto staking. Crypto staking is gaining more and more followers. This technique makes it easy to earn rewards and is easier to implement and cheaper than mining. At Binance, many crypto currencies are eligible for staking.
Cryptocurrency staking is reserved for tokens based on PoS (Proof of Stake) consensus protocol blockchains.
PoS is an alternative to PoW (Proof of Work) on which the Bitcoin blockchain is based. The latter was created to solve problems of scalability, latency and centralization on the BTC network. For BTC and other PoW networks, reaching consensus requires mining each new block of transactions with specific equipment. These tools, such as ASICs and GPUs, are generally very expensive. In addition, PoW validation must be confirmed by all nodes.
In a PoS protocol, on the other hand, the validation of new blocks is assigned to a number of nodes only. These validators do not need to mine the blocks, but simply check that they match the protocols. This means that they do not need to invest in high-powered computing equipment.
There are many derivatives of the PoS protocol, such as DPoS and HPoS. However, these versions all have some basic principles in common. This includes the election of block validators. These are chosen randomly among the holders of the relevant tokens. The blockchain tends to choose those who hold the most funds and put them to use in the network. Candidates for validator status are therefore judged by the amount of cryptocurrency they put into play. The larger the amount, the more likely the applicant is to be trusted by the blockchain and the user network.
Many people want to know how to stake on Binance and benefit from the rewards. These rewards consist of new tokens created with each block of validated transactions and transaction fees. It should be noted that the platform also grants bonuses. On the other hand, the holders of locked tokens also benefit from voting rights regarding the management of the blockchain concerned.
Moreover, crypto currency holders are getting into staking as this asset valuation technique does not incur any fees. So, instead of letting tokens stagnate in your wallet, staking cryptos on Binance will allow you to collect profits for free.
Locking in stakes on Binance is very simple. All you have to do is to lock in assets and put them at the service of the networks to earn interest.
It is essential to have a Binance account and to hold tokens that are eligible for staking. Then make a cryptocurrency deposit to your Binance wallet. Note that Binance also allows you to buy coins directly by bank transfer or credit card. You can stake the following cryptos : Ontology (ONT), Stellar (XLM), Algorand (ALGO), NEO (NEO), Qtum (QTUM), Vechain (VET), Stratis (STRAT), and Komodo (KMD).
Those who want to know how to trade on Binance can click on "Finance" in the top menu of the home page. From the drop-down list, select "Binance Earn". On the next page, look for "Locked Staking" and click on "View More". This will take you to a list of all the crypto-currencies eligible for staking on Binance. For each product, the platform displays, among other things, the annual return in APY, the duration of the lock and the minimum amount to lock.
To start staking on Binance, select your crypto and specify the staking duration, then validate. The minimum staking period is usually one day. It is possible to visualize the return forecasts according to the different durations. This will allow you to identify the best offer. On the other hand, the return is estimated in percentage (APY) and is adjusted daily according to the rewards that come from each blockchain.
By locking tokens for staking, you make them unavailable for the period of time you have chosen. Thus, the staked quantities cannot be sold or exchanged.
At Binance, the interest that results from crypto staking is calculated the next day, starting at 0:00 UTC. These earnings are then paid out to your wallet with a 1-day lag. When the staking term reaches its end, the assets are automatically released. However, before the end of the staking period, it is possible to make an early withdrawal, the timing of which varies depending on the blockchain. It is therefore necessary to allow between 48 and 72 hours to unlock the tokens. In case of early withdrawal, the interest earned will be reduced.
