Module 5.0.0. Practical Session: Staking in Binance
Binance is much preferred to many other third-party service providers because their staking fees are almost zero; in fact, it is zero percent for most of the coins. In addition, Binance has invested heavily in the security of its networks and it has a good range of crypto pools in which you can stake your coins.
More so, Binance is one of the service providers that offers high staking rewards. In fact, most of its staking rewards for Locked Staking are calculated as APY, and that means your staking rewards can compound if you keep them over a long period.
Thus, it is a wise idea to pay attention to POS services in Binance.
The following are the steps to take to stake your coin in Locked Staking in Binance:
Step 1: Log into your Binance account and deposit the crypto you want to lock-stake.
If you don’t have a Binance account, go to the lessons in Grade 4 of the Primary School of Cryptocurrencies for step-by-step guidance.
Step 2: Find the Finance tab at the top, and then click on Binance Earn.
Step 3: Click on Fixed Terms and on then on Staking. You will see two coins for locked staking. To see more coins that you can stake, click on View More and then on Expand All, and you will see the following:
(i). all the available cryptos for locked staking
(ii). the estimated staking rewards in APY
(iii). the duration of days you can choose to lock-stake: 15, 30, 60 or 90 days
(iv). the minimum amount of the crypto that can be lock-staked
Note that the estimated APY staking reward is not the same for each duration of locked staking.
Step 4: Choose the crypto asset you want to stake, select the duration for locking, then click on Stake Now.
This will open a new page where you’ll find all the details about the selected staking offer. You can still adjust your selection to meet your desire.
Note that the estimated APY is adjusted daily based on the on-chain (blockchain) staking rewards.
Available Amount shows the available balance in your spot wallet that you can use to stake on Locked Staking. If you don’t have enough crypto, you go back and deposit more of the crypto into your Binance account.
There is a minimum limit required for staking. If your balance is lower than that, you won't be able to stake.
Step 5: After confirming the details, enter the locked amount you want to stake and click on Confirm Purchase.
Once you subscribe to the product, the staking rewards will be calculated from 00:00 [midnight] (UTC) of the following day and paid each day after 00:00 (UTC) throughout the period of your staking.
You will see your staking reward (interests) in the Fiat and Spot wallet of your Binance account.
When the process is complete, the staked assets will be redeemed automatically, and the funds returned to your spot wallet.
Step 6: If you want to redeem (unstake) your crypto assets before the end of the process, click on the Redeem Earlier button.
Note that unlocking your staked assets requires a specific time based on the specifications of the chain you're staking on. Binance Locked Staking allows you to redeem assets the following day. However, it sometimes takes 48-72 hours to receive the tokens due to different global time zones.
Also, note that if you decide to redeem the Locked Staking products in advance, the staking rewards (interests) you have generated will be deducted when your assets are returned. Therefore, it is good to allow the staking period to run to completion once you have staked your crypto in Locked Staking.
If you are not sure you will hold on to the full duration of your locked staking, it is better to stake the crypto in Flexible (Unlocked) Staking.