In the world of cryptocurrency, those who do not wish to straight-out purchase digital money have probably heard of crypto “mining”, a process that involves having powerful computer networks solve equations to validate transactions on the blockchain network.
In layman’s terms, someone uses their computer to add to the security of digital transactions and in return, they are “paid” in newly created cryptocurrency. However, there is another method for prospective crypto hunters, and this process is considerably easier to explain and understand: crypto staking.
This process works like mining, also functioning as a “consensus mechanism”, which means it validates cryptocurrency transactions, except instead of using the energy consumption of high-end computers to fuel the mining, this system uses whatever amount of cryptocurrency you stake to limit the number of transactions you can validate with your currency. In short, the more you deposit, the more transactions you can do, the more money you can earn. As a bonus, this process is incredibly economical and does not use energy to perform the process.
Intro To Staking
The concept of crypto staking is easy for anyone who understands how basic savings accounts work at a bank, or better yet, a CD (Certificate of Deposit) account.
Traditional savings accounts involve depositing money into a specified account and receiving a specified amount of money (usually a small percentage) as interest in return. Therefore, the more money invested, the more money returned. You can, however, remove this money from that account at various times and under specific circumstances.
A CD account functions the same way, except the money inside cannot be touched for a specified amount of time in return for higher interest than a standard savings account. This is the general concept for how crypto staking words, too, except crypto seekers are storing digital tokens into the crypto governance system Blockchain instead of tangible money in a bank. There’s a locking period you agree to, and your money sits there for this duration, and when that time limit is up, you can access that currency once more.
But your crypto isn’t just resting while it’s in there, it is being put to work verifying transactions in a process called PoS (Proof of Stake) and helping to add to the security of blockchain, similar to how it works with mining, but using a different, low-energy method. Your “interest” is your reward for keeping that block of your currency locked away to be used for this purpose. Your cryptocurrency is literally working for you, and you pocket the paycheck.
Who is Binance US?
Binance US is the United States variant of the original Binance which was founded in China back in 2017. It functions as a cryptocurrency broker exchange and is the largest based on daily trading volume.
It provides a variety of services, from buying and selling crypto to facilitating trade based on the current crypto market with some of the lowest fees. It also allows users to engage in staking.
Coins Available for Staking on Binance US
For those who are interesting in trying out staking, there are a wide variety of coins available for prospective stakers. Here are some of the most popular cryptocurrencies that are currently available for this purpose on Binance US:
Benefits to Staking Crypto: Pros and Cons
Is it worth your while to engage in staking? Here are some advantages and disadvantages to help you make that determination.
- Like money gaining interest in a bank, it requires you to do nothing to make money except let it sit and accumulate
- The starting costs are minimal, you only need to be able to access a cryptocurrency exchange and purchase whatever preliminary amount of your chosen crypto you desire
- It is very easy to do
- No special skills are required
- Unlike mining, it does not require intense energy draw to power expensive computers
- The money currently in “savings” cannot be removed during the designated time
- Due to the volatile nature of cryptocurrency, the value of the coins can change and sometimes that means that they actually lose value, although that is more the nature of the currency and not the staking process itself
- Like most passive income methods, the gain is moderate at best
Benefits to Using Binance US
Binance US has many advantages over its competition, making it the premier site for not only staking, but crypto-currency trading, peer-to-peer trading, and crypto-to-crypto trading. Here are some other benefits:
- There are more than 50 cryptocurrencies available, more than anywhere else except its parent company outside the U.S.
- It has an incredibly low 0.1% trading fee
- The minimum trade is a low $10
- Instant trade fee of 0.5%
- Money deposits are insured for us to $250,000 by the FDIC
- A very high security score
- The ability to schedule buys makes it easy for recurring buyers
- The platform is simple and user-friendly|
- Has a well-designed suite for institutional accounts
How Do I Stake Using Binance US?
The process is incredibly easy. First, create an account on Binance US. Once you have done so, merely purchase the cryptocurrency you choose from their wide selection of options or use crypto you already possess.
Then go to the staking section of the website, read the details about staking rewards for the different cryptocurrency options and select the one you wish to stake. Deposit the amount you want to stake, then sit back for the required locking period and collect your “interest”, letting your digital currency work for you.
There is simply no better alternative for passively acquiring crypto than staking. If you are interested in delving into the cryptocurrency world and want an opportunity to begin earning rewards immediately with very little effort or overhead, this is the optimal method for you especially on Binance US.
It is your opportunity to put your crypto to work and reap the benefits without having to do anything, allowing you to not only keep your digital currency safe but collect that interest which can, in turn, be used to save even more. Binance US gives you a leg up by providing the lowest interest rates and the widest variety of cryptocurrencies, giving you the opportunity to choose the form that you want with few limitations.
As easy as the process is, requiring no special equipment and a low entry cost, it is considerably better than crypto mining, especially considering that the majority of the money earned in that fashion is immediately used to fund the excessive amounts of energy used to power the high-level computer technology necessary to even perform the process. Staking is an equal opportunity process, available to anyone.