What is Binance Earn? Guide to Join Binance Earn (2022)

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2022-12-07 04:31:19

What is Binance Earn?

Binance Earn is a product developed by Binance that allows users to easily profit from existing assets with varying degrees of risk. The main products that Binance Earn offers include Simple Earn, BNB Vault, Launchpool, Auto Invest, Dual Investments, and Staking.

How Binance Earn . Works

Binance Earn acts as a savings account where users can lend, stake, pool… their assets and earn extra profits.

Specifically, Binance Earn will calculate the APR that users receive when using flexible deposit, DCA or staking products on Binance Earn. All the user needs to do is choose the asset type, investment type and investment period.

Pros and cons of Binance Earn

Advantages

Binance is a large trading platform with over 500 different cryptocurrencies, so users have many options when using Binance Earn. Binance Earn products provide users with a variety of methods, profits and risks, serving from novice to professional investors.

In addition, Binance Earn is also very suitable for busy investors who do not want to spend a lot of time on investing, reading charts… and have a low level of risk tolerance.

Defect

Instead of using Binance Earn, users can get higher returns with other higher risk investment methods.

Methods of making money on Binance Earn

There are 2 main methods of making money on Binance:

  • The first method with low risk but low return includes Simple Earn, BNB Vault, Launchpool and Auto Invest.
  • The second method has a higher level of risk and requires investors to have more investment experience including Dual Investment, Staking ETH 2.0 and Staking DeFi.

Simple Earn

Simple Earn works similar to depositing savings in a bank, but instead of sending fiat money, users deposit cryptocurrency.

simple earn binance
Simple Earn on Binance Earn

There are two deposit time options: Flexible and Fixed.

If you choose to be flexiblethe APR level (profit rate by year) users get will be lower. However, users can make withdrawals at any time. This is safer and more liquid for users.

The level of APR received can change on a daily basis. The amount of APR the user receives also depends on the amount of money the user deposits. The larger the amount, the higher the APR.

Compared to flexible deposit, fixed deposit has more attractive APR, while providing users with more options, such as 30-day, 60-day, 90-day or 120-day deposit. However, if the user withdraws before the deadline, all accumulated rewards will be forfeited. The reward recorded in the previous user’s spot wallet will also be deducted from the user’s deposit when withdrawing.

The rewards received from participating in Simple Earn will be automatically transferred directly to the user’s spot wallet. Usually, after about 3 days of joining, users will start receiving rewards.

To start participating in Simple Earn, users just need to choose the type of token they want to register, choose the sending time and click register. Access Simple Earn here.

BNB Vault

BNB Vault is a profit aggregator that allows users to simultaneously participate in many different products such as Simple Earn, Launchpool, DeFi Staking thanks to the amount of BNB they hold. After signing up for the BNB Vault, users can start withdrawing funds the next morning. This is a particularly useful tool for BNB holders.

bnb vault binance
BNB Vault on Binance Earn

In particular, if Launchpool has only 1 active project, the APR of BNB Vault and Launchpool will be similar. If Launchpool has many active projects, BNB Vault will automatically register the project for the user, then the user can choose the project and the amount he wants to participate in.

To start participating, the same person needs to stake BNB on the BNB Vault. The product will then automatically calculate the user’s reward. Access BNB Vault here.

Launchpool

Binance Launchpool is a platform that allows users to stake BUSD, BNB or other tokens supported in the pool to receive free new tokens listed on Binance exchange. Learn more about Binance Launchpool here.

Auto Invest

If you want to invest in cryptocurrencies for the long term but don’t have much time, Auto Invest is a great product for you. This product works according to DCA strategy (price averaging), allowing users to automate the investment process and earn passive income.

auto invest binance
Auto Invest on Binance Earn

Users can make investment plans manually or automatically, depending on their preferences, financial ability and investment time. Auto Invest allows users to withdraw money anytime they like without losing their earned rewards.

After a successful purchase of cryptocurrencies according to a predetermined time, these assets will be automatically transferred to a flexible account on Simple Earn, thereby increasing passive income from the investment.

To start participating, users need to choose the cryptocurrency they want to DCA, investment period and investment amount per period. Access Auto Invest here.

Dual Investments

If making profits from staking is attractive enough for users, learn about Dual Investments right away. Dual Investment is a product that allows users to earn profits similar to staking and earn more if the market moves in the right direction.

dual investments binance
Dual Investments on Binance Earn

Specifically, Dual Investments supports users to buy cryptocurrencies at a low price and sell at a high price at a specified date in the future, while helping them receive attractive APR returns (similar to staking). and place sell orders at the same time) without paying transaction fees. However, it should be noted that users will not be able to change the selling price and target payment date after registering for Dual Investments.

Dual Investment is especially suitable if the user wants to:

  • Closing: Sell ​​the asset at the target price, while earning additional yield.
  • Buy low: Buy the asset at the desired price in the event of a bear market, while earning additional yield.
  • Profit: Earn extra profits while owning the property.

The risk of participating in Dual Investments is that if the market price on the settlement date is much lower than the buy target price, the user will buy at the relatively higher price and vice versa. Also, another risk is that the user cannot sell the asset when the market is volatile because the asset is locked to the settlement date.

For instance, on December 2nd, BTC is having an APR of 4.42% at $17,000. User wants to sell 1 BTC on 6/12 at 17,500 USD with 19.21% APR.

  • Case 1: By December 6, the price of BTC is 17,650 USD, users will receive 17,500 USD and 19.21% APR profit.
  • Case 2: By December 6, the price of BTC was 17,350 USD, users still kept the original 1 BTC with 19.21% APR profit.

Risk 1: If the price of BTC drops to $16,000 on December 5 and possibly deeper, users will not be able to sell BTC to cut their losses because BTC is locked up to the settlement date of December 6.

Risk 2: If BTC price goes up to $20,000 on December 6th, users will still get only $17,500 with a 19.21% APR return because the user’s $17,500 target price has been reached.

Staking ETH 2.0

Staking is the act of holding and locking a certain amount of coins in order to receive rewards from them. ETH 2.0 (or Ethereum 2.0) is the process of upgrading the Ethereum network, updating Proof of Work (PoW) to Proof of Stake (PoS), and applying Sharding to improve the transaction processing speed of Ethereum.

Instead of providing 32 ETH to be able to participate in staking directly via Ethereum, users only need to provide 0.0001 ETH on Staking ETH 2.0 (or more if desired). The reward of staking ETH on Staking ETH 2.0 is up to 11.20%. The more ETH staked, the lower the APR.

staking eth 2
Staking 2.0 on Binance Earn

The user ETH reward will be expressed as BETH token (Binance + ETH) in the spot wallet. After staking ETH, this ETH will be locked until staking withdrawal is enabled on Ethereim Mainnet (at least 6-12 months after The Merge). At this time, users can exchange BETH for ETH and withdraw money.

However, it should be noted that even with the withdrawal feature enabled, only a limited amount of ETH is withdrawn per day. If exceeded, users will not be able to withdraw funds. Therefore, be careful with this type of investment.

To participate in Staking 2.0, users need to select the amount of ETH they want to stake and choose to confirm. Access Staking 2.0 here.

Staking DeFi

DeFi Staking is a product developed by Binance that allows users to stake various DeFi assets through smart contract without keeping wallets on-chain and without gas fees. Some assets on DeFi Staking may not allow flexible staking like Simple Earn.

With DeFi Staking, Binance only acts as a third party, helping to connect projects and users. If an on-chain contract is hacked while a user is performing DeFi Staking, Binance will not be responsible for any damages.

To start participating, users choose the type of asset they want to stake, the time limit they want to stake and click confirm. Access Staking DeFi here.

summary

During a bear market, instead of keeping assets in a wallet, users can earn additional passive assets through Binance Earn products. Because each product has its own pros and cons, users need to carefully understand the level of risk before deciding to participate.

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