With the advent of decentralized finance, or DeFi for short, came new ways for cryptocurrency holders and enthusiasts to grow their capital. One such way is through Binance Savings. In this article, we will discuss what Binance Savings is, why Binance Savings is a good opportunity to get your cryptocurrency growing, the benefits of Binance Savings, as well as a step-by-step guide on how you can get started growing your cryptocurrency holdings
What is Binance Savings?
As mentioned, Binance Savings is a way for you to grow your cryptocurrency holdings. Binance Savings offers you multiple options to pick from that best fit your risk appetite and investment goals. By simply depositing your cryptocurrency holdings into your Binance wallet, you can seamlessly start growing your cryptocurrency in no time as we’ll go over shortly in this article.
Why Use Binance Savings?
Make your money work for you
There’s a quote that goes, “If you don’t find a way to make money in your sleep, you’ll spend the rest of your life working”. By utilizing Binance Savings, you now have a way to grow your cryptocurrency holding with little to no effort, 24/7.
A common problem with cryptocurrency investment options is the security of your cryptocurrency due to all of the cryptocurrency-related scams that have entered the market. With cryptocurrency’s advanced encryption and user anonymity, it is extremely difficult to trace down a scammer once you’ve been scammed. It is also impossible to reverse a transaction on a blockchain once payment is made. With this in mind, it is best to invest your cryptocurrency with a reputable institution, such as Binance.
Binance is an Asian cryptocurrency exchange founded in July 2017, and is currently the largest cryptocurrency exchange in the world in terms of the daily trading volume. Binance’s high trading volume is attributed to the level of trust that the cryptocurrency community has for the platform. This makes Binance a viable and trusted option for cryptocurrency investment.
Options for every investment goal
Binance Savings offers investment options tailored to every investor profile. Whether you want to stake on a Proof of Stake blockchain or lend out your cryptocurrency through DeFi lending, Binance Savings has an option for you. Furthermore, Binance Savings opens up the possibility for you to easily earn from over 120 different cryptocurrency projects.
Binance Savings: The Benefits
Multiple Investment Options
As mentioned before, Binance savings provides multiple options for users to choose from to invest in. The array of options available provide custom flexibility, annual returns, and risk mitigation to make available investment options that fit every investor profile. Investors can also choose from the large list of cryptocurrency projects to invest in.
Binance savings allows you to continuously grow your money with little to no effort for as long as you want, using the investment option or options of your choice.
Security And Trust Assured
You can not be the largest cryptocurrency exchange in the world without having the necessary security protocols and measures required. Binance is aware of the security threats that come with being involved in the cryptocurrency space and knows that with a reputation like theirs they are a popular target for cryptocurrency crimes. Due to this, Binance has prioritized security on its platform. Therefore, you can rest assured that your funds are relatively safe when using Binance savings.
Binance savings offers flexible investment options. Not only can you choose from a wide array of cryptocurrency projects to invest in, but you can also choose the terms and duration of your investment. You can either cash out at any time or you can specify a fixed investment duration where you are only able to cash out at the end of the investment term. Each option comes with its own set of pros and cons, so it is important to analyze the pros and cons to best choose the option that will work for you
Main Investment Categories on Binance Savings
Investment options available on Binance savings can be divided into four main categories: fixed savings, flexible savings, locked staking, and lending activities. Let’s take a deeper look at each one.
The best way to think of a fixed savings-investment on Binance is like an ordinary fixed savings bank account, just for cryptocurrency. In a fixed savings investment on Binance, you have to set a duration for your investment and can only cash out at the end of the duration. Although this does not provide the flexibility of a flexible savings investment, it does offer better returns that are dependent on mainly the duration your funds are locked for and the amount of funding locked. The reason a fixed savings provides better returns than a flexible savings is because the funds are locked for an agreed upon duration.
Flexible savings allows you to cash out your interest earned and/or the amount invested at any time throughout the investment period. Compared to fixed savings, flexible savings is a lot more flexible in terms of access to funds. However, the returns are a bit less.
This option allows you to earn by staking your Proof of Stake cryptocurrency coins to earn staking rewards. You are required to lock your staking cryptocurrency for a fixed period between seven and ninety days. The returns vary based on the cryptocurrency staked, the amount staked, and the duration staked for. This is very similar to fixed savings, it just involves staking.
These are special activities that appear from time to time and offer much higher returns than the other options available. It can be thought of as a flexible savings investment, however the options become available from time to time. To better profit from lending activities make sure to keep an eye out for any announcements.
Now that we have covered what Binance savings is and the options available, let’s take a look at how you can get started.
Binance Savings: Step-by-Step Guide
Step 1: Create an account on Binance
Before you can begin you’ll need to create an account on Binance. You will also need to verify your account by submitting the necessary KYC documents.
Step 2: Deposit funds
After successfully opening your account and completing the account verification, the next step is to deposit funds into your account. There are two main ways to make deposits, you can either send cryptocurrency from a non-Binance wallet to your Binance wallet or, if the regulation in your country allows for it, you can make a credit card payment.
Step 3: Allocate The Funds To Your Chosen Option
Once your deposited funds reflect in your Binance wallet, you can head over to the Binance savings page. Here, you can scroll through the options and will see the potential annual interest that you can earn for subscribing to each option. It is important to note that annual interest is expressed as annual percentage yield (APY) and as a percentage of the amount that you invested.
Binance Savings: Conclusion
Binance is a reputable cryptocurrency exchange that offers its users a suite of investment and savings options that have the potential to generate medium to high annual returns. The options available can be fit to any investor profile and can be customized according to ROI goal, risk appetite, and investment duration.
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