TL;DR
Not interested in trading but still looking to increase your crypto holdings? Is the 0.05% interest your local bank offers on your savings account not exciting enough? Well, you’ll find alternative choices within the Binance Earn product suite.
Binance Earn is your crypto savings account. Here, you’ll find a great variety of options for earning passive income with your crypto holdings.
Introduction
Binance Earn provides a way to increase your savings while you’re sound asleep, knowing that your funds are doing all the work for you. There are a number of different options, each with its own assumptions about your risk profile, time horizon, and desired returns.
Whether you just want to stake your Proof of Stake (PoS) coins, lend your funds for interest, or safely deposit them to a DeFi service through Binance, we’ve got you covered. So, let’s see what Binance Earn has to offer.
Want to earn crypto while you sleep?
What is Binance Earn?
Binance Earn is a complete suite of financial products you can use to increase your crypto holdings. You can think of it as your crypto savings account.
Let’s go through the main categories of Binance Earn so you can figure out which suits your investment style the best.
Simple Earn
Simple Earn allows you to earn rewards on your idle assets, either for flexible or locked terms.
Flexible Products can be subscribed to and redeemed at any time, so you can retain flexibility and liquidity over your assets while earning daily rewards.
Locked Products provide higher rewards in exchange for your assets being committed for fixed terms with predetermined redemption dates. You can still choose to redeem your full balance at any time before the redemption date, but you will forgo all the rewards you have received up to that point.
So, if you’re holding some money in your Spot Wallet, why not earn rewards on these assets with Simple Earn? Make your assets work harder for you by making a simple choice between Flexible and Locked Simple Earn products!
Note that your rewards will not be calculated on the day you subscribe to a Simple Earn product. Instead, the first interest payment is calculated from the next day after your subscription.
Launchpool
By now, you’ve probably heard about Binance Launchpad, right? It’s a token launch platform where promising projects can get funded by the user base of Binance through a process called an Initial Exchange Offering (IEO). You've probably also heard about yield farming or liquidity mining, where users lock up funds to liquidity pools to “mine” a new token.
So what do you get when you put an IEO and yield farming together? Launchpool. You can lock up your BNB, BUSD, and other cryptocurrencies to get a share of a new token that's being launched on Binance. Sometimes, tokens will even launch both on Launchpad and Launchpool at the same time.
Launchpool is a great way to earn some passive income, as the cost of getting the new tokens is only the opportunity cost of locking your tokens. Even so, you can redeem them at any point during the event.
Ready to make some passive income?
Asset Management
The Asset Management tab gives you access to some more advanced savings products. Not to worry, though. These are still quite easy to use. Let’s see how they work.
Binance Liquid Swap
Binance Liquid Swap is a special type of exchange that prices assets according to a mathematical formula instead of an order book. If you’ve read our Uniswap article, you’ll know how this kind of liquidity protocol works. Another fancier term for it is automated market maker (AMM).
Binance Liquid Swap is somewhat similar to Uniswap and other AMMs like Curve Finance, but it’s operated by Binance. It’s a dead-simple way to quickly convert between assets such as stablecoins with low fees and slippage.
That’s great, but how does this concern savings? Well, similarly to Uniswap and other AMMs, you can also become a market maker. Just deposit one (or multiple) of the supported stablecoins, and start earning interest. The returns you get here could potentially be higher than if you would be using other Binance Earn products.
Dual Investment
Binance Dual Investment is a nifty way to earn some side income no matter which direction the price goes. It lets you optimize yield on your savings while minimizing price risk. How does it work? Let’s see a quick run-through.
You deposit a cryptocurrency and earn a return based on two assets. You commit your holdings, lock in a yield, but earn more if the value of your holdings increases during the time that they’re locked up.
Simply, it’s a way for you to control your risk. If you’d like to read about it in greater detail, check out A Quick Guide to Binance Dual Investment.
BNB Vault
The BNB Vault is a BNB yield aggregator that combines BNB DeFi Staking and Launchpool to give you returns. It’s very easy to start earning with BNB Vault.
After staking your BNB, you will receive BNB Vault assets. The interest will start to calculate on the second day and rewards are distributed to your account on a daily basis.
You can redeem your funds at any time via two methods: fast redemption and standard redemption. Fast redemption allows you to redeem your BNB on the same day you make the request, but you will lose the interest accrued on that day. Standard redemption will return your funds the next day, but you will still be entitled to the interest accrued on that day.
Make extra gains from crypto sitting in your Binance account
Closing thoughts
Phew, that’s quite a lot of options to earn passive income! Getting your Binance savings to work for you is easy. Binance Earn lets you choose the product that best suits your investment style, so you can just sit back and let your funds do the work.