Cryptocurrency has proven to be an asset that serves as an hedge against inflation. This reality has made it possible for traders to earn passive income with cryptocurrency. Apart from the popular method of buying and ‘hodling’ cryptocurrency to make profit; Companies like Binance has introduced various methods on how newbies and established traders can enjoy the benefit of cryptocurrency. This article highlights and explains how to earn passive income on Binance with cryptocurrency.
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10 Methods on How to Earn Passive income on Binance with Cryptocurrency
Although, there are numerous methods of how one can earn passive income with cryptocurrency, this article will focus on 10 methods that can help you earn passive income on Binance with cryptocurrency. It is also important to add that; while some methods are risk free, others have high risk. The riskier the method is, the higher the returns.
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Flexible Savings
Flexible savings refers to the ease of staking your cryptocurrency in order to make passive income. This method of earning passive income with cryptocurrency is the least risky as one could always get back the full crypto saved. This means that there are certain options by which ones crypto can be saved in order to get a fixed Annual Percentage Yield (APY). This method is so flexible in the sense that crypto saved could be pulled out even before the fixed duration expires. In situations whereby the crypto is pulled out before the fixed duration period, one gets his or her full crypto but forfeits the yield the crypto would have accrued during the fixed period. Since there is zero risk, the APY or passive income generated via this method is usually low.
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BNB Vault
Binance has designed a method called BNB vault through which passive income could be earned with cryptocurrency. The BNB Vault method simply refers to the staking of unused BNB in order to earn daily rewards. This method is risk free as it guarantees ones capital.
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Launchpad
This method makes it possible for you to stake certain cryptocurrencies such as BNB, BUSD and Bitcoin in order to be rewarded with new tokens that will be later listed on Binance. This method has no risk as it guarantees ones capital.
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Fixed Savings
Fixed savings as the name connotes refers to the process of locking cryptocurrencies for a certain period, say between 7-90 days. It is important to note that rewards can only be redeemed after the locked period. This method is similar to bonds in the traditional investment setting. It has no risk as capital is guaranteed. Also, a minimum of $100 can be used to invest.
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Locked Staking
This method helps you stake as low as 10 USDT worth of crypto tokens. The rewards of this method are high because there is risk involved. Although, one can redeem in advance before losing the original crypto staked. It should be noted that if one redeems in advance, the rewards meant to be received will be forfeited.
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Activities
The Binance earn segment on Binance often provides certain activities which involves saving and staking in order to earn rewards. Once activity is successfully completed before being fully subscribed, your yield automatically appears in your spot wallet. Although there isn’t always activities but if interested, you can always stay tuned till when there would be an activity so you could take advantage.
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ETH 2.0 Staking
Ethereum (ETH) 2.0 is an upgraded version of Ethereum. Cryptocurrency enthusiasts and users have complained about the exorbitant fees of Ethereum. This problem has given rise to rival crypto projects such as Solana, Cardano, Avalanche and Polkadot which boast of cheaper network fees. Ethereum seeks to solve this problem by introducing an upgrade known as the ETH 2.0. This new upgrade allows you earn rewards by supporting the ETH 2.0 by staking ETH.
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DeFi Staking
This method of earning passive income refers to the process of staking decentralized finance tokens such as BNB, BUSD, DAI and even BTC and start a yield farming. It requires no technical knowledge but it provides a dynamic APY of up to 60% and the risk is high.
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Dual Investment
This method of earning passive income on your cryptocurrency simply refers to the process of locking BTC, BUSD or USDT in a savings yield product. Rewards are earned based on the volatility of the market. In a case where the volatility of the market is in favour of the investment, that is, returns supersede the capital saved, the profit will be given as a reward. Otherwise, your holding will change to another asset. This is a risky method of earning passive income with cryptocurrency on Binance as capital earnings are not guaranteed and it’s risky based on the price volatility of of the asset invested.
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Liquid Swap
This method is for those who seek to manage their asset. It enables them to add assets and redeem reward at anytime. It also provides the availability of choosing between stable and innovative pools with various risk levels and yields which in turn makes you a liquidity provider by adding fiat and stable coins to the liquidity pools. This method of learning passive income with cryptocurrency on Binance has a high level of risk as yield too is high.