Binance has yet again given its investors another opportunity to make money without necessarily trading. Therefore, investors can earn interest in Binance Coin (BNB). The interest-earning service works by allowing you to earn interest on the BNB you have deposited just like a savings account does at a bank.
This is not something new in the crypto world since you can earn interest on many other coins as well. If you are interested in earning interest on Binance, this article is for you.
What Are the Basics?
To earn interest on Binance Coin, you need to first invest. This means buying BNB, but if you already have these coins, you just need to deposit them in an interest-earning account. Fortunately, many crypto brokers offer these services on top of exchange services. Thus, investors can get all services under one roof.
To earn interest on Binance Coin, you can explore one of these two options.
· Flexible basis – This allows you to deposit BNB in an interest-earning account, but you can withdraw, deposit, or perform transactions as you wish while earning interest at the same time. It is an enticing opportunity with 100% liquidity since your investment is under your control, unlike the next option that we are going to discuss.
· Locked basis – This is just like a fixed savings account at a bank. Once you deposit a certain amount of BNB for a specified time, you cannot access the digital asset until the maturity date. The duration is usually between 7 and 90 days. Therefore, you must decide before investing.
Where Does the Interest Come from?
When you visit third-party platforms that work together with Binance, you will be surprised to learn that your coins could earn as much as 3% APR. Actually, it is possible to earn interest with YouHodler wallet when you deposit BNB. But have you ever wondered where the interest comes from?
Once you deposit your BNB, Binance lends the coins to borrowers, who in return repay with a higher interest rate than what you earn. The difference is the profit that goes to the companies managing all these operations.
How Is the Safety of Your Savings Account?
The Binance trading platform has a big reputation, which is why it has grown to be one of the busiest today in terms of liquidity and number of users. Whether you are using a third party like YouHodler or depositing directly on Binance, all transactions are done on Binance to ensure there is enough security for the assets.
What Are the Accepted Cryptocurrencies?
Binance accepts several cryptocurrencies, altcoins, and fiat currencies for savings. The most popular ones include Bitcoin, USDT, EUR, and GBP among others. So, it is easy to decide the coins you want to start saving with this platform.
One thing to note is that different digital coins have different interest rates. So, it is better to check which suits you well before you start the investment. If you are not sure, you can consult a professional to guide you. The Binance platform provides a lot of information as well as a link to a community that can help you.