How to Earn Crypto on Binance with Their New Lending Service

The first lending platform I want to talk about today is Binance Earn. but who are these Binance fellows? well I’m going to cut to the chase here and just say that no one really knows where Binance is based. yes many people are going to say malta however around a year ago the Maltese regulator came out to say that Binance wasn’t regulated under the maltese jurisdiction. now some folks make a big deal about all this but the thing is that businesses like Binance are global digital businesses and it’s maybe not best to judge them as you would a regular company. after all Binance operates around the world which means that a central headquarters isn’t really needed. any who Binance opened its doors to traders in 2017 after raising around 15 million dollars via an ico. the platform is best known as the king of crypto exchanges. it literally lists hundreds of the top altcoins, has the deepest liquidity and a plethora

 

of other awesome services to boot now. one of these additional products would be Binance Earn essentially you just supply crypto and you earn interest. however before I get into the ins and outs that it is really important that you understand how that interest is generated.

 

in the first place after all it’s got to come from somewhere right? that’s a question that everyone using bit connect failed to ask and I think you know what happened there. no those interest payments do not come from a mythical money fairy. instead you are actually lending your crypto assets to margin traders on Binance. those crazy cowboys are the ones that pay you interest in return for borrowing those funds on Binance Earn. so yes reasonably straightforward right what you need to know is that there are two types of plain vanilla lending products on Binance Earn.

 

the first would be something called fixed deposits that’s just when you lock your funds on the platform for a predetermined length of time that could be 7, 14, 30 or 90 day terms.

yes you have the power to select the time frame you want and you’ll be rewarded with a higher interest rate the longer you lock those funds in for. you can always supply one of three stable coins and take advantage of these fixed term interest rates. those would be usdt, busd and usdc. now if you want to get the best rate of interest you’ll want to supply either usdt or busd.¬† supply one of these stable coins for seven days and you’ll get a 6.31 annualized interest rate going up to 7. if you lock those funds for 90 days, however usdc does attract a lower rate, of interest with a seven day term attracting a 5.31 interest rate and a 90-day lock-up time maxing out at six percent. yes that is a significantly better rate than I can get at my local bank however the problem with these fixed term interest rates on Binance Earn is that only stable coins are supported on a regular basis.

it is true that Binance holds special events for different coins and tokens with fixed subscription limits. these operate on a first come first serve basis and generally pay much higher rates of interest than can be generated by supplying stable coins. the issue is that these events don’t run all the time and generally hit their cap pretty damn quick.

now I don’t know about you but I only really hold stable coins as dry powder to allow me to pounce on any opportunities I see in those crypto markets. so personally fixed lock-up periods aren’t particularly useful as I might find a strategic opportunity at any moment and it would honestly infuriate me if I couldn’t get access to that stablecoin and take advantage of it.

that’s why I personally prefer flexible lending terms where I can withdraw those stablecoins whenever I want. yes you’ll get a lower rate of interest with flexible savings however it’s not all that much of ¬†difference for that added flexibility with the flexible 7-day apy running at 5.79 at least!

it was at the time of shooting this article.

another cool thing about flexible savings rates on Binance Earn is that you can supply a significantly wider selection of altcoins and earn interest on those funds 58 different crypto and fiat currencies. to be precise that includes the likes of bitcoin which you can get a 1.2 apy on filecoin which can return you a nifty 4.67 apy and you can even earn interest on fiat currencies like the pound and the euro.

yes I know that 1.2 interest on the likes of bitcoin might not sound like very much, however consider that if you supplied btc, held it on Binance Earned for a year and the price of btc tripled those returns in u.s dollar terms would be very nasty. certainly much better than keeping that bitcoin lying around in a wallet.

Binance Earn does offer other high risk products like defy staking, dual investment and liquid swaps however I’m going to brush over these today as I don’t really want to encourage any of you guys to rush into high-risk stuff. put very simply you’ll be promised a higher rate of interest but that’s a reward for taking on. more risks so please do be aware of that.

another major benefit of Binance Earn is that it’s integrated into the largest crypto exchange in the world. I’m sure many of you already have accounts here and it’s exceptionally useful to have that one-stop shop for all your crypto dabbling.

it also means you can avoid needless withdrawal freeze from exchanges to take advantage of that crypto interest on offer but are your funds safe on Binance? well I do need to tell you that Binance was hacked in 2019 and about two percent of all the bitcoin holdings on the exchange were siphoned off by a nefarious actor. however the exchange did reimburse everyone affected by tapping the safe fund which is a pot of crypto set aside for stuff like this so, yes. no user was out of pocket, here if you like the sound of Binance urn and want to learn how to use it then I have a dedicated Binance walkthrough for you.

I also have an exclusive 20 fee discount available there too so be sure to check out that in the top right now.