How to Use Binance Earn? A Tutorial on Staking and Earning Crypto

In addition to buying and selling cryptocurrencies to profit from price differences, you can also use the Binance Earn feature to let your crypto "make money for you." Depositing your idle cryptocurrencies into Binance Earn allows you to earn interest, much like depositing money in a bank. Different Earn products offer varying yield rates and flexibility; choosing the right product can generate a stable passive income without increasing your risk. First, you need an account registered on the Binance Official Website, and you should have the Binance Official App installed for convenient operation. For Apple device installation, please check the iOS Installation Guide.

What Is Binance Earn?

Binance Earn is a one-stop earning platform provided by Binance, bringing together a variety of different crypto-earning products. You can deposit your crypto holdings and earn yields based on different interest rates.

Types of Earn Products

Binance Earn mainly includes the following products:

• Flexible Savings: Deposit and withdraw anytime; lower interest rates but high flexibility.
• Locked Staking (Fixed Savings): Locked for a specific period; higher interest rates.
• Staking: Participate in blockchain network validation to earn rewards.
• Launchpool: Stake BNB or other tokens to farm newly launched tokens.
• Dual Investment: An advanced Earn product with higher yields but carrying certain risks.
• Liquidity Farming: Provide liquidity to earn a share of trading fees.

Beginners are recommended to start with Flexible Savings and Locked Staking, as these two are the simplest and safest options.

How to Use Flexible Savings

Flexible Savings is the most versatile earning method; you can deposit and withdraw at any time, with no lock-up period.

Operational Steps

1. Open the Binance App and click "More" at the bottom.
2. Find "Earn."
3. Select "Flexible Savings."
4. Browse the available cryptocurrencies and their corresponding Annualized Percentage Yields (APY).
5. Select the cryptocurrency you want to deposit (e.g., USDT).
6. Enter the deposit amount.
7. Check the box to agree to the terms.
8. Confirm your subscription.

How is the Yield for Flexible Savings Calculated?

The yield for Flexible Savings is calculated daily, and interest is automatically distributed to your account every day. For example:

• You deposit 10,000 USDT.
• The Flexible APY is 2%.
• Daily yield = 10,000 × 2% ÷ 365 ≈ 0.55 USDT.
• Monthly yield ≈ 16.5 USDT.

The yield rate is not fixed and will fluctuate based on market conditions. Binance periodically adjusts the interest rates.

Redeeming Flexible Savings

When you want to withdraw:

1. Go to the Earn page.
2. Find your Flexible Savings holdings.
3. Click "Redeem."
4. Enter the redemption amount (you can redeem fully or partially).
5. Confirm the redemption.
6. The funds usually arrive instantly or within a few minutes.

How to Use Locked Staking

Locked Staking requires you to lock your crypto for a certain period, but the yield rates are higher than Flexible Savings.

Operational Steps

1. Go to the Binance Earn page.
2. Select "Locked" or "Locked Staking."
3. Browse the available products, paying attention to the lock-up period and APY.
4. Common lock-up periods are: 30 days, 60 days, 90 days, and 120 days.
5. Select your desired product.
6. Enter the deposit amount.
7. Confirm your subscription.

Things to Note for Locked Staking

• Cannot withdraw during the lock-up period: Once deposited, you must wait until expiration to retrieve your funds. Some products support early redemption, but you will lose a portion of the accumulated interest.
• Limited quotas: Popular products may run out of quota quickly, so you need to participate promptly when subscription opens.
• Automatic redemption upon expiration: After expiration, the crypto will automatically return to your Spot Wallet.
• Fixed interest rate: The interest rate for Locked Staking is determined when you subscribe and will not change with market fluctuations.

How to Choose Different Periods

Generally, the longer the lock-up period, the higher the yield rate:

• 30 days: Suitable for short-term idle funds; offers better flexibility.
• 60-90 days: Balances yield and flexibility.
• Over 120 days: Offers the highest yield rate, but funds remain immobilized for a long time.

It is recommended to choose based on your fund usage plans. If you are unsure when you will need the money, opt for Flexible Savings or short-term Locked Staking.

How to Participate in Staking

Staking is a way to participate in the operation of a blockchain network and earn rewards. Many cryptocurrencies use a PoS (Proof of Stake) mechanism, where token holders can stake their tokens to participate in network validation and receive rewards.

Which Coins Can Be Staked?

Common cryptocurrencies available for staking include:

• ETH: Ethereum Staking
• SOL: Solana Staking
• ADA: Cardano Staking
• DOT: Polkadot Staking
• ATOM: Cosmos Staking
• BNB: BNB Staking

The staking APY varies significantly among different coins, ranging anywhere from 2% to 20%.

Operational Steps

1. Go to the Binance Earn page.
2. Find "Staking."
3. Browse the stake-able cryptocurrencies.
4. Select a coin you currently hold.
5. Choose a lock-up period (some are flexible, while others require locking).
6. Enter the staking amount.
7. Confirm your stake.

Risks of Staking

• Lock-up risk: If the token price plummets during the staking period, you cannot sell your assets.
• Slashing risk: In very rare cases, malicious behavior by a validator node can result in staked tokens being slashed (though you generally don't need to worry about this when staking through Binance).
• Yield fluctuation: Staking yields are not fixed and may change over time.

Launchpool — Farm New Tokens

Launchpool is a unique feature on Binance that allows you to farm upcoming new tokens by staking BNB or other supported tokens.

How to Participate

1. Go to the Binance App homepage.
2. Find the "Launchpool" entrance.
3. Check which farming projects are currently ongoing.
4. Select a project.
5. Stake BNB (or the project-designated tokens).
6. New token rewards are automatically distributed every hour.
7. Once the farming period ends, retrieve your staked BNB.

Advantages of Launchpool

• Zero cost: Your staked BNB is not consumed; you retrieve it all when the farming period concludes.
• Free new tokens: It is essentially exchanging the opportunity cost of holding BNB for new tokens.
• Low risk: Your principal (BNB) remains safe.
• Appreciation potential for new tokens: Newly launched tokens might increase in value if the project performs well.

Dual Investment — Advanced Earn

Dual Investment is a structured earning product offering higher yields but with an added layer of complexity.

Basic Principles

You deposit one type of crypto (e.g., BTC) and set a target price and settlement date. Upon expiration:

• If the BTC price does not reach the target price, you get back your BTC plus interest (calculated in BTC).
• If the BTC price reaches the target price, your BTC will be sold at the target price, and you will receive USDT plus interest.

Who Is It Suitable For?

• Users who are already planning to sell BTC at a certain price.
• Users willing to bear the risks of token price fluctuations.
• Users who have a basic understanding of structured Earn products.

It is not recommended for beginners to try Dual Investment right away; start with Flexible Savings and Locked Staking first.

Viewing and Managing Earn Yields

Viewing Yields

1. Go to the "Wallets" page in the Binance App.
2. Find "Earn."
3. You can see your holdings across all Earn products.
4. This includes information like your principal, cumulative yield, and estimated daily yield.

Management Recommendations

• Diversify your investments: Avoid putting all your crypto into a single Earn product.
• Monitor interest rate changes: Flexible Savings rates fluctuate; check them periodically to see if adjustments are needed.
• Allocate reasonably between Flexible and Locked: Keep a portion in Flexible Savings for easy access, and place long-term idle funds in Locked Staking for higher returns.
• Keep an eye out for new products: Binance frequently launches new Earn promotions, some of which offer additional yield bonuses.

Frequently Asked Questions (FAQ)

Is Binance Earn safe? Will I lose my principal?

Flexible Savings and Locked Staking are relatively safe; your principal will not decrease (measured in the quantity of tokens). However, note that if you deposit volatile coins like BTC or ETH, while the number of coins will not drop, their fiat value might decrease if the market price drops. If you deposit stablecoins like USDT, you generally do not need to worry about this issue.

How often are Earn yields distributed?

Flexible Savings usually distributes yields daily. Locked Staking generally distributes yields in a lump sum upon expiration. Please check the specific details for each product.

Are the staked coins still in my account?

Coins deposited into Earn are transferred from your Spot Wallet to your Earn Wallet. They are still within your Binance account, just in a different sub-wallet. You can view them at any time on the "Wallets" page.

What does an Annualized Percentage Yield (APY) of 10% mean?

It means that if you deposit for exactly one year, you will theoretically earn a 10% yield. However, if you only deposit for 30 days, your actual return is 10% × 30 / 365 ≈ 0.82%.

What's the difference between Earn and leaving coins in the Spot Wallet?

Coins sitting in your Spot Wallet do not generate any yield. Depositing them into Earn allows you to accrue interest. If you have coins you don't intend to trade immediately, placing them in Flexible Savings will at least earn you some interest.

Can I participate in multiple Earn products simultaneously?

Yes. You can simultaneously put USDT in Flexible Savings, stake BNB in Launchpool, and stake ETH. You can choose different earning methods for different cryptocurrencies.