Binance Staking: A 2024 Guide to Growing Your Crypto Assets

TLDR

This Binance Staking tutorial gives you everything you need to know to stake crypto. Crypto staking allows users to earn interest on their cryptocurrency holdings by depositing coins into a wallet and then locking them up with the network until they receive rewards. It’s similar to how banks offer depositors interest on their balances. Nevertheless, it occurs in a blockchain network instead of a traditional financial institution.

Staking on the Binance exchange is one of the easiest ways to earn APY on your crypto. Anyone with a device and internet connection can create an account on the Binance exchange app, register it, and complete all the necessary verification and security processes. Once done, you deposit some BNB and process to staking.

Introduction

Binance is considered one of the world’s biggest exchanges and the most favored cryptocurrency exchange among traders, customers, and investors. The Binance platform has undergone many triumphs and increased significantly over the years.

Their staking program is one of the most favored trading services on the Binance platform. Their trading service has been around for a few years and is one of the easiest ways to earn BNB tokens.

A lot of people are hyped about Binance staking. However, it sometimes needs to be explained how it works or why you should even bother doing it.

Binance staking is a great way to gain passive income and support the Binance ecosystem. Keep reading, and we guarantee you will learn how to earn every month by just holding your coins.

What is Crypto Staking? 

To understand how Binance staking works, you must know how crypto staking works. 

Crypto staking is a process that allows users to earn interest on their cryptocurrency holdings. It’s similar to how banks offer depositors interest on their balances. Nevertheless, it occurs over a blockchain network instead of a traditional financial institution.

The cryptocurrency staking process in which you earn rewards on your crypto holdings. This interest is earned by using your coins to “stake” on the network, which means that you contribute some of your hard-earned cryptos to work being done by other users.

The concept of staking is simple: deposit coins into a wallet and then lock them up with the proof of stake network until you receive rewards. Stakers are rewarded for keeping their coins locked up in wallets while they wait for the rewards to arrive.

When you stake more coins, higher your chances of receiving rewards. The rewards are newly minted coins, meaning they are not tied to an actual transaction on the blockchain or an exchange.

This process means that if there is an extensive network hash rate and transaction volume, it will take longer for you to receive a reward than someone with smaller balances closer to their threshold for staking rewards.

How to Stake on Binance

Binance staking is a process that allows you to get rewards. It requires you to lock up your BNB tokens in a smart contract, which will be unlocked once you reach specific block heights on behalf of the chain.

These easy steps will give you everything you need to start staking on Binance. If you already have a Binance account, skip directly to step 5.

Step 1: Create an account at binance.com

Creating a Binance account will give you access to all Binance exchange services, including staking. For a simple set-up, click the [Get started] button below.

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Binance is a great combination of low fees, deep liquidity and multiple cryptocurrencies and trading pairs. We have tested every aspect of it and it STILL holds its reign as the top exchange in the world. In our view, it is the perfect crypto exchange for both newbies and advanced traders alike.

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  Biggest exchange in the world.

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  Industry's lowest trading fees.

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  Advance trading options like leverage trading.

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  600+ crypto options, 150+ for the US.

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  Lucrative on-site staking options.

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  Hiccups in account verification.

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  Less regulated than some competitors.

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  The corporate structure is not transparently.

Step 2: Registration 

Register your account using the e-mail address and password you used when creating your account. Here, you get to pick your country of residence and type of account.

Step 3: Verify your account (KYC)

After registering, it is important to complete your account’s KYC verification. This step allows Binance to prevent fraud, terrorist activities, scams, and money laundering. 

Step 4: Deposit BNB

Deposit some BNB into your account (you can do this in any currency).

Step 5: Stake your BNB

Now that you have your Binance account, let us look at how you start earning your staking rewards.

Log into your Binance account on the login page. Once on the home screen, click on the [Earn] tab on the menu bar at the top. A drop-down menu will appear, and you click [Binance Earn].

On the Binance Earn page, you will either see BNB as an option or type in “BNB” in the Search bar in the top corner.

After you have clicked BNB, you can choose the duration of your staking. The option is between locked staking or flexible. By choosing one of them, you also return your principal (tokens staked) after the locking period with protected staking.

The locking period is the certain amount of time in which you’ll keep your tokens commitment for staking. In some cases, the exchange may not be required to stake your tokens for a certain time (flexible staking), but some exchanges may require it.

In general, though, the typical time commitments required for staking BNB can include the following:

• 7 days
• 15 days
• 30 days
• 60 days
• 90 days
• 120 days
• 365 days

The last step is to choose the amount you want to stake and click the [Stake] button.

Congratulations, you have staked your BNB and will wait for the rewards to accumulate in your wallet.

Types of Binance Staking

There are several kinds of staking on the Binance exchange. These staking methods differ because of risk levels and annual percentage yields (APYs). There is also direct staking and indirect staking. But the main ones are: 

• DeFi staking (Decentralized Finance) 
• Locked staking

There is also Binance Vault and Binance Launchpad, which you can use to stake digital assets.

Binance DeFi Staking and How to Use It

This is a form of staking where Binance aggregates your and other users’ funds and stakes them on different DeFi projects. It is a means to earn passive income from your crypto assets. 
On Binance DeFi staking, you only have 13 options against Binance Locked staking, and the staking process is easy.  

Locked savings

This form of savings on Binance exchange requires you to lock your funds in a different wallet that belongs to Binance. 

In this staking, your crypto assets will earn you rewards and help maintain the ecosystem of the network. You have over a hundred staking options to pick from in locked staking. 

Binance Launchpad

Binance Launchpad is used for launching startups. It allows you to earn rewards by helping new crypto projects with fundraising. 

Staking Rewards on Binance

When you stake BNB on the Binance exchange, you’ll get a small percentage of the staking rewards. This percentage is determined by your account age and the BNB you hold in your wallet. 

The higher your account age and the more BNB in your wallet, the more you earn. The amount you make is calculated daily based on the current price of BNB and the amount of BNB staked during that day.

The daily schedule for staking rewards can be found here.

Why Should You Stake?

Staking can be helpful for users who want to earn more money or those who wish to support their network. To do either, you must invest some or any of your assets into staking pools, where miners will use it to secure transactions on the Binance chain.