Binance US is popular among most crypto traders thanks to its incredibly lower fees compared to other exchanges. However, as you plan on staking crypto on the platform, you must pay attention to all the crucial details. This detailed guide takes you through everything that you need to know about Binance US.
Why Get Involved In Staking Crypto
Staking crypto is one of the latest trends used to achieve the effectiveness and security of the blockchain network without the wastage of resources. It works based on the Proof of Stake approach, in which staked coins are used to create new blocks.
There are several benefits that we can achieve with participating in staking crypto:
- Positively contribute to the environment
Different studies done on blockchain technology affirm that it requires a lot of energy. The original blockchain is known for eating up too much energy, estimated to be more than Argentina typically consumes in a year.
Staking crypto seeks to change that by providing an alternative way in which we create new blocks. All that you have to do in this process is to “lock-up” a portion of your cryptocurrency for a specific period. In return, you get to earn rewards in the form of tokens or coins.
- Improved value of a token
Staking crypto functions in the same way as depositing money in your bank account and committing to not withdrawing it for a certain amount of time. Doing so has the benefit of improving the value of the coins because they will now be available in limited supply.
You may have noticed that cryptocurrencies undergo one of the biggest fluctuations in value. That mainly happens when there are too many coins in the market than the quantity accepted by users. Through staking, you can create an artificial shortage to trigger scarcity and enhance the coin’s value.
- Rewards for staking
When you stake, you can earn a reward based on how long you do so and the number of your holdings. That is similar to earning interest at your bank based on the amount of money you set aside and agreed not to withdraw until a particular date.
You also have a chance to pool together your holdings with other investors to meet the minimum requirements of a staking pool. Doing so increases your chances of getting rewarded as you verify and validate new blocks.
Who Is Binance US?
Binance US is an American-based crypto exchange associated with Binance, the largest cryptocurrency exchange platform in the world based on trading volume. The platform was created in China in 2017. By 2019, the original exchange stopped accepting U.S. users and opted to partner with its version based in the United States – Binance US. That was a strategic decision and came at a time when there was a lot of misunderstanding between China and the U.S.
Since the introduction of Binance US in 2019, the platform has continued to face strict regulatory scrutiny. That is a major challenge for the exchange, and this indirectly motivates them to act in the best interest of their users. It is vital that you keep tabs on all the regulatory developments surrounding Binance US even as you get ready to stake on the platform.
Coins Available for Staking On Binance US
Staking on Binance US gives you an opportunity to earn rewards based on the quantity of the coins and the period that you hold. Sometimes, you may opt to join a staking pool if you are not able to meet the requirements. Doing so helps improve the performance of different coins listed on the platform.
The coins that you can stake on Binance US include:
- XTZ
- VET
- EOS
- ATOM
- ALGO
- ONE
Binance US allows you to earn up to 10% per annum when you stake. You can still continue trading on the platform while staking.
Is Binance US Safe To Stake Crypto?
Binance US has been subject to strict regulatory monitoring by different states as well as the federal government at large. Much of this scrutiny mainly comes from its association with the parent company Binance based in China.
It is expected that Binance US would act in compliance with the law to avoid getting shut down due to these strict regulations. That makes the platform safe to stake cryptocurrency and trade the same.
However, always make sure that you research the latest development from the government regarding Binance US as you go about staking. That ensures you are up to date with any new risks and know whether or not to stop staking crypto on Binance US.
Benefits to Using Binance US
- Low fees
One of the biggest advantages of Binance US lies in the low fees that its users have to incur. That means you get more value out of your coins than you would typically receive from other platforms. The exchange commits to charging its users lower fees in an effort to attract more investors and increase its market share. That is the same strategy that its parent company used to achieve the largest trading volume worldwide.
- User-friendly
Binance US has a user-friendly interface that beginners and seasoned investors can comfortably navigate. Compared to most other exchanges and crypto-wallets that can be quite complex, the platform has a clear navigation path. It’s easy to see crucial links, and users feel that they are well-directed in terms of what they need to do when logged into their account. You do not have to strain when performing operations such as checking your account details and transaction.
- Reliable
Binance US is a centralized exchange, something that helps deliver reliability and security when performing crypto transactions. You can comfortably hold cryptos on the exchange as it is linked to a reputable platform that has users from across the world.
Benefits to Staking Cryptocurrency
Staking cryptocurrency gives you several benefits, including:
- The ability to earn transaction fees if you become delegated proof of stake (DPoS)
- Improvement in crypto value since staking creates a limited supply
- Rewards in the form of percentage coins when you stake
- Lower transaction fees on the crypto exchange
Final Thoughts
Cryptocurrency staking has become a trend mainly because of the crucial benefits that it offers its users. It introduces the concept of PoS as opposed to PoW. This is a trend that will continue for a long time as we realize the strength that exchanges like Binance US have in store for us.
