Binance is a popular trading platform with an enormous list of ways through which you can make money.
Even apart from the common way of making money (fiat and spot), Binance still offers a variety of options.
In case you’re considering them, then it is good for you to know that Staking is one of those ways.
Recently, we talked about Shorting on Binance, now we will be talking about staking, its benefits, its risks, and some freebies.
If you’re all set, then let’s dive in.
What is staking?
Before we dive into the depths of Staking, let’s consider this.
As you might have heard people say in movies, “she staked her life on the line for her country“, maybe you might have a hint of what that really means in the crypto world.
When we used staking in the above sentence, we used it in a context that suggests that she gave her all, her totality for her country.
Staking in crypto terms is somehow similar based on how you look at it.
Staking is similar in the sense that when you stake an asset/currency on Binance (for example), you are putting it on the line.
Cause if the currency at stake should drop in value, you may lose your money without having made enough from your Interest.
Staking works just like a loan from a bank, when you stake your money on an exchange platform, it means you are borrowing your funds to help the blockchain network run well.
And in turn, they pay you an interest rate which is fixed for each network you choose.
Basically, in this article, we re considering the process involved in staking Vechain on Binance.
Why or why not staking?
Have you ever asked yourself why you eat? No probably!
The same way you want to eat daily is the same way you would love to make some extra money.
Of course, if you don’t want to make some extra money, that’s alright.
Basically, it is a good method to employ if you want to increase your earnings.
And guess what?
Binance added a menacing feature to their Staking section in which users can demand their funds even before the duration ends.
The only loss is that they won’t be paid any Interest rates.
But this is still good, come to think of it, if you did not demand it despite symptoms of decline in its price, you might as well lose everything.
Why not?
You should have thought about it, why would they pay you interest while you keep gaining without loss.
There’s also a tendency of risk there, Staking has a duration i.e timeframe so, within that duration, you cannot do anything with your crypto ( i.e you cannot withdraw or sell them).
Not just this but even when the time elapses and you want to withdraw your money, usually you might have to wait for days before you can have them at your reach.
Of course, if you really want to withdraw them before the time elapses, you can but as we have said earlier, the only consequence is that you’ll not be paid any interest rate.
I am not saying this to discourage you or scare you, I’m saying this just to get you prepared for what is ahead.
After all, is there anything in crypto that does not have risk?
How to Stake Vechain on Binance
I believe that you’ve prepared your mind with the little warning that you read above.
Since this is the case, let’s get straight to the point.
In this article, I will use Vet as the example but the idea is that you can use this guide to stake any currency you want.
Are you ready? Then this is our guide.
Step 1: Open the Binance website.
The first step is to open the Binance website, then input your login details to log in successfully.
Make sure that you have money in the currency (Vet) you intend to stake so as not to cause problems later on.
Step 2: Navigate to the “Locked Staking” Page
Note, Binance used the locked staking as the venue for staking on their exchange platform. And to get to the “locked staking” page, you should follow the below steps.
Click on “earn” then on “staking”
NOTE: The current Binance application does not support the locked staking option. so If you want to use your mobile phone, you have to use their website.
Step 3: Choose the coin you want to stake.
Once you have clicked on staking, you will be taken to the locked staking page where you will see a search bar meant for finding the coin you want to stake.
Go ahead and type in Vet (for example) and click on it once you see it.
Then you’ll see different durations in the form of a number and a capital D at the back e.g 15D, and 30D which stand for 15 and 30 days respectively.
Step 4: Click on “stake”
Choose the type of duration you want.
For example, if you choose 30D, it means your funds will be staked for 30 days before you can withdraw them.
Go ahead and click on “stake” on the duration that you want.
You may not find the button stake on all of the duration and you may even find “check” on some of them, so click on check and later on stake.
Note: Endeavor to keep checking the available coins for staking on Binance cause they are constantly changing based on availability
Step 5: Review the Staking details.
You are almost done!!!
On the left side of the screen, you’ll find the different durations and of course, the one you have chosen will also be there.
Towards the bottom(still the left side), you’ll find the “lock amount” section, enter the amount of Vet you want to stake
The minimum number of Vets you can stake is 1 while the maximum is about 500,000 plus or even bigger depending on the duration you have chosen.
You can also review the details on the right which contain the information about this trade. Finally, click on the checkbox for the agreement section.
Confirm the stake by clicking on confirm at the bottom right side.
Done!
In case you want o know the meaning of those words at the right side of your screen, check below:
- Stake Date: the initial Date of staking.
- Value Date: the exact time when staking begins.
- Interest Period: time between the distribution of accrued interest.
- Interest End Date: the exact Date when staking ends.
- Redemption Period: the redemption time of the asset (early or at the end of staking).
- Est. APY: estimated percentage of annual interest.
- Estimated Interests: estimated value of the interest for the staking asset (at the end of staking).
Note the following!
- The APY is adjusted daily based on the on-chain staking rewards and the specific APY is subject to the page display on the day.
- Early redemption: Users can choose to redeem in advance before the staking period ends. After choosing early redemption, the principal will be returned to users’ spot accounts, and users will NOT receive GAS or VTHO rewards.
- The price of NEO/GAS and VET/VTHO will be calculated based on the prices from 0:00 AM – 4:00 AM (UTC) on the next day after the product expires.
- Risk warning: Cryptocurrency trading is subject to high market risk. Please make your trades cautiously. Binance will make the best efforts to choose high-quality coins, but will not be responsible for your trading losses.
FAQS
Are Vet and Vechain the same thing?
The vet is an abbreviation for the Vechain token while Vechain is the full name for it.
They are the same and are currencies on a Blockchain.
Is Vechain a currency?
VeChain is a cryptocurrency and smart contracts platform focused on supply chain management.
It’s specifically designed to be used by both small and big businesses. VeChain’s public blockchain is called VeChainThor.
The Vechain Foundation is founded in Singapore and oversees the development, governance, and advancement of the VeChain ecosystem.
Differences between Vet and VTHOR
VET is used as a medium of exchange and store of value for services provided by the blockchain. Conversely, VTHO is used to pay for gas (transaction) fees on the network. As VeChain is a proof-of-stake network, users can generate VTHO tokens by staking their VET on a supported wallet.
Disclaimer: Information on this site should not be perceived as investing advice.
No matter what you should always make sure to invest what you can afford to lose.
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