Hello, and welcome to another post.
In this article, I'll be going over what BINANCE savings is, and why I use it so much.
If you read my post yesterday, I talked extensively about how much I use Binance savings to get passive income on my crypto.
Well, you'll find out why by the time you're done reading this.
Let's get started!
WHAT IS BINANCE SAVINGS?
Binance savings is a service that allows users to earn interest on their cryptocurrency by lending it out to others.
It's a really simple process. You put your money up for saving, and Binance lends it out to people who wish to borrow it. They of course lend it against a collateral, which is usually more than what the borrower borrowed.
When the period of borrowing elapses(which is similar to the period of your locking up), your money is refunded to you, along with a profit.
This profit is calculated based on the APR of the cryptocurrency you're saving. For instance, when last I saved BAT on Binance, the APR was about 2.5%. This means that if I was to save my BAT for 1 month, my interest after a month would be (2.5/12)%.
Binance savings is a new product, and they offer a lot of popular cryptocurrencies for users to save.
For example, ZCash was recently added, and they keep on adding new cryptocurrencies.
The idea is that this could potentially increase the wealth of hodlers.
See, even when you're holding a coin, the value tends to decrease and increase over the period you're holding it for. With Binance savings however, the "mean" value remains the same because of the fact that you're earning interest on your money.
So say I have $10000 worth of Bitcoin that I plan on holding for 5 years. Rather than just holding it in a random wallet without earning anything, I could save it on Binance savings and possibly double my stash of Bitcoin if I keep compounding my gains.
Binance savings is the best hybrid of both Passive income and compounding interest. With the feature that allows users to automatically reinvest their earnings, it's even better for people that don't have time to check charts all day, but want to make sure they're earning an interest.
You can try out the service here. Here are the steps to use it:
- Log in to your Binance account on desktop
- Go to the wallet section
- Choose "savings" next to a supported coin
- Follow the instructions
It's that simple!
I hope you enjoyed reading the post. If you did, a follow and tip would be massively appreciated.
Please check out my other posts on my blog as well. Thanks for stopping by
