Key points to know
Passive Investing in cryptocurrency helps users generate returns from idle digital assets by using minimal effort.
Passive investing through Binance Earn offers yields such as: attractive annual percentage rate (APR), takes little time to monitor, has investment strategies that are generally stable and does not incur fees (except for staking ETH and SOL).
This guide will explain the basics of passive investment and how to start generating income from the cryptocurrencies you hold with Binance Earn.
Introduction
When people start their journey in the cryptocurrency world, they often begin with spot trading, which is the easiest method. Nevertheless, many are still unsure how to deal with the assets sitting in their wallets, thus passive investment becomes a good option – and Binance Earn is the best place to start.
In this article, we will talk about the basics of passive investment, advantages and limitations, including how to use Binance Earn in an easy-to-understand way.
What is passive investment?
Passive investment is a way to earn money without having to work hard. It's like taking money and putting it into various things such as stocks or cryptocurrencies and letting it grow over time without the need to constantly check or buy-sell.
With this method, holders of cryptocurrencies can create sustainable income from their assets. In the world of cryptocurrencies, passive income can be generated in various ways such as: Staking, Yield Farming, and Lending.
Advantages of passive investment
Rewards: Users can receive returns and make their assets grow regardless of how the market fluctuates.
Consistency is key: Generally, there will be strategies available that help investors maintain their investment approach over a long period.
Time-saving: Uses less time and effort compared to active trading, suitable for those who don't have time to watch the market constantly.
Limitations of passive investment
Market risk: No management response to rapidly changing market conditions, may cause investors to experience adverse impacts during market downturns.
Liquidity constraints: Depending on the selected product, sometimes investors may not be able to withdraw funds immediately.
Market volatility: Some products may heavily depend on large-cap assets, making it risky if the market conditions affect that segment.
Binance Earn is what?
Binance Earn is a platform that helps users earn passive income from cryptocurrencies. It has a variety of products to cater to investors at every level, categorized into two main types:
Simple: Suitable for those who want predictable returns such as Simple Earn (Flexible and Locked), ETH Staking, SOL Staking.
Advanced: Suitable for those who want higher returns but also come with higher risks such as Dual Investment, Smart Arbitrage.
How to start using Binance Earn
Log in to Binance and go to the [Earn] menu at the top.
You will enter the Binance Earn page which will display the available products and your income summary.
Scroll down to view the asset names, APR rates, and duration. You can use the search box to find the assets you want.
Select the product of interest and click [Subscribe]. Enter the amount, check the details, and click [Confirm].
Flexible: Withdraw funds anytime. Locked: Must deposit funds for a specified duration.
How to start ETH Staking
On the Simple Earn page, select [ETH Staking].
Check APR data references and exchange rates.
Click [Subscribe] and enter the amount of ETH. You will receive WBETH which is a token representing ETH that you stake plus rewards.
WBETH can be traded, transferred, or used in DeFi while still earning staking rewards.
If you want to redeem ETH, go to the menu ETH Staking and click [Redeem].
How to start SOL Staking
On the Simple Earn page, select [SOL Staking].
Check APR and exchange rates between SOL and BNSOL.
Click [Subscribe] and enter the amount of SOL. You will receive BNSOL as a return.
BNSOL can be used in other applications while you continue to earn staking rewards.
If you want to redeem SOL, click [Redeem] on the SOL Staking page.
How to start Soft Staking
Select [Soft Staking] in the Simple Earn section.
Click [Activate], read the terms, and click [Start Earning].
Soft Staking will help you earn rewards from the Proof of Stake (PoS) network of that blockchain, with rewards paid as the main token of the network.
Binance Sharia Earn
Designed for millions of people worldwide, Binance Sharia Earn is a staking service that has been endorsed as Halal (compliant with Islamic principles).
Received endorsement from Amanie Advisors.
No interest (Riba).
No risk or uncertainty beyond the limits (Gharar).
Not associated with prohibited activities (Haram) such as: alcohol, gambling.
Summary
Passive investment in cryptocurrencies is a good opportunity for building wealth over the long term without requiring much effort. Binance Earn offers many options to help users receive high returns under manageable risk.