Binance staking with locked staking, flexible staking and defi staking feature image

Binance Locked Staking VS Defi Staking and Risks

In this article, we will discuss what locked staking at Binance is and the risks associated with this investment.

We cover

  • What is Binance Earn?
  • Binance Earn Locked Staking
  • Binance Flexible Staking
  • Binance Defi Staking

What is Binance Earn?

Binance Earn is a collection of different features on Binance where you can put your money to work to earn passive income.

This feature is perfect for you if you are a HODLer rather than an active trader. Also, it is suitable for traders when their funds are not engaged in a trade. 

Binance Earn and locked staking are available from the Binance android and IOS app.

In this article, we will cover

  • Binance locked staking with auto-invest
  • Binance flexible staking
  • Binance Defi staking

Simple Earn

  • Locked Staking (Auto-Invest)
  • Flexible Staking
  • BNB vault (Yield aggregator)

Staking

  • Defi Staking
  • ETH 2.0 Staking
  • DOT slot auctions

Farming

  • Liquidity Farming
  • Swap Farming
  • Launchpool
  • High Yield
  • Short Period

What is Binance Locked Staking?

Binance locked staking is a process where you lock your funds for a certain amount of days, and as compensation, you will generate an interest yield. 

Locked staking is part of the complete Binance Earn feature, which includes many possibilities to generate passive income from crypto.

Binance locked staking now allows auto-renew, which means you don’t have to manually after each locking period.

Read our full Binance review and if it’s safe to use and learn more about regulation.

What cryptocurrencies are available for Binance locked staking?

Almost all more significant cryptocurrencies are available at Binance locked staking. In addition, you can also find smaller-cap cryptocurrencies if they are popular and have substantial trading volumes.

Does Binance charge any fees for Locked Staking?

No, Binance does not charge specific fees for the locked-earning product.

How long are the funds locked in Binance staking?

There is flexible staking with lockup periods of 15, 30, 60, 90, and 120 days. All durations are not available for all cryptocurrencies.

What is the personal quota in Binance locked staking?

The personal quota in Binance locked staking is the maximum number of coins each personal account can allocate to a specific lock-up period. The long lockup periods with high APY have a very low individual quota. 

What are the risks with Binance locked staking?

The risk with Binance Earn locked staking is limited. The rules are set on predetermined criteria. You will get your deposit back plus the agreed interest. One chance you expose yourself to is that you can’t sell if you would need the money or if the deposited cryptocurrency decrease in value. If you are a HODLer, this shouldn’t concern you.

However, as always, when you use any 3rd party service, there are risks associated with the 3rd party, which is the Binance company. Read more about crypto risk management.

How to enter the Locked Binance staking?

First, you must sign up with Binance. Use the button below and sign up with your email and password.

Get 20% off from all trading fees forever on Binance with our referral link.

Now, log in and look for “Earn” in the header menu. After this, click on “Staking.”

After this, you will enter the staking area at Binance. Here, you can see that you can choose between locked staking and Defi staking, as shown in the screenshot below.

Here, we have searched for Avalanche AVAX, and you can see three options for locked staking 30, 60, and 90 days. Unfortunately, they all give separate interest returns, and they might not be available at all times since they can be filled up.

Alternative: There is an alternative way to see the Binance lock staking alternatives. If you click “Earn” and “Binance Earn,” you can search for your coin. Here, all available options will come up, including locked staking, flexible staking, and if there are more options.

What is Binance Flexible Saving?

Binance flexible is similar to locked staking, a product of the Binance Earn feature. However, there are no lock-up periods in the Binance flexible saving compared to locked staking.

Binance flexible saving offers you to earn interest on specific cryptocurrencies without a locking period. Unlocked staking is preferable over locked staking if you don’t know how long you can lock your coins. However, this also comes with a lower APY (annual percentage yield).

You find flexible savings by clicking “Earn” and “Savings.”

What are the tier levels in Binance Earn flexible staking?

Be careful with the marketing rates for Binance Earn since they have both tier levels for flexible staking and personal quota for locked staking. The tier levels for the flexible staking mean you will only earn the high yield for a limited number of coins, and for tier 2, the APY usually drops quite a lot.

What coins are available for Binance flexible saving?

Binance is offering its flexible savings product for many different cryptocurrencies. The APY rates can be decent but usually the tier 1 allocation is very small.

What is Binance Defi Staking?

Binance Defi staking allows you to stake Defi projects. Defi (Decentralized Finance)provides financial services to users through smart contracts. Existing Defi projects aim to deliver higher annualized earnings for specific currencies.

 

Binance Defi Staking Risks

Binance has a specific warning for Defi staking:  Binance only acts as a platform to showcase projects and provide users with related services, such as accessing funds on behalf of the user and distributing earnings, etc. Therefore, Binance does not assume liability for losses incurred due to project on-chain contract security issues.

Binance is offering intermediaries between you and smart contracts through Defi staking. The purpose of these middlemen is to make Defi products more available and simple to use for the consumer (you). However, they can’t assume liability if a smart contract or on-chain project fails.

Alternatives to Binance Earn Staking

There are some great alternatives to Binance Earn locked staking. For example, you can earn passive income and rewards with Kraken staking. Read more staking with Kraken in our review.

 

Binance Ethereum ETH 2.0 Consensus Layer Staking

Binane offers you to stake ETH 2.0 consensus layer proof-of-stake network in the Binance Earn feature.

Here, you can earn 4.34% (January 2023) if you stake your ETH with Binance. 

One secret to entering Binance staking in Binance is to trade the BETH/ETH market instead of subscribing to ETH 2 staking.

At the BETH/ETH market, you can buy around 1.02-1.03 BETH for every ETH, which means you will earn 2-3% directly.

Read more about how to stake ETH 2.0 with Binance and profitability with Pros and Cons.

However, if you plan to make a sizeable staking investment, you must be aware of the slippage since the market has no deep liquidity. Still, the liquidity is more than enough for most traders and investors. Read more about crypto trading slippage meaning and tolerance.

 

Summary Binance Earn Locked Staking Review

Binance is the largest cryptocurrency exchange which probably adds a lot of confidence to these products. However, it would be best to forget that investments always come with certain risks.

Binance has declared some of these risks, and there is always a risk that the account can be hacked, the return can change over time, and the underlying asset can decrease over time. Still, we believe this is an excellent way to earn passive income on your crypto holdings. We use this service ourselves for Solana SOL, Avalanche AVAX, Cardano ADA, and Cosmos ATOM.

Kraken is another great crypto trading platform offering crypto staking opportunities. Read more in Kraken review 2023 – one of the best US crypto exchanges.