Hello PUBLISH0X community and welcome back in my Sunday article dedicated to the “Easy and Short. Cryptocurriencies made accessible” section.
Today we are here with the second article of a special month of this section dedicated to Binance!
5 weeks, 5 amazing articles with a lot of tips and video tutorial dedicated.
Have you missed last article? Don’t worry you can recover it here
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Let’s continue this special month with a particular part of Binance: BINANCE Staking and Lending.
In Binance Earn we can find 3 different kind of investment:
- Flexible Terms
- Fixed Terms
- High-Risk Products
Flexible Savings are like a crypto saving account. You can put in this account your funds from the exchange wallet and Binance will pay an interest to you. Today there are 55 Flexible Savings products with different APY & Trend. This is an example of what product and how much is the APY at the moment:
In the same moment you can also earn interest with Locked Savings. These deposits are more profitable and for each one you can choose the duration of this “lock” from 7 to 90 days.
Then we have the High-Risk Products, like DeFi Staking, Dual investment or Liquid Swap.
In short, Binance from this point of view, gives you many choices on where to allocate your crypto for staking or lending.
If crypto are born like a decentralized asset, what happens when we stake or lend on Binance?
We immediately notice that since everything is subordinated to the Binance platform, we cannot speak of DeFi (decentralized finance) but CeFI (centralized finance); in a sense it is as if a bank was offering financial products with cryptocurrencies as the underlying assets.
So, it is really appropriate to stake or lend crypto on Binance?
In my opinion no. I prefer use native wallets, where I can also choose the representative to vote in a decentralized way. I like cryptocurrencies because they give back to people the power to own their coins, so do staking on Binance is against my ideologies.
Today I want to focus the attention to the differences of Binance Staking or do staking on native wallet on 2 particular coins and project that I like so much!
The first one is Tron (TRX). I don’t want to spent a lot of words here on how to stake TRX because I have prepared a tutorial on this.
My personal tutorial about TRX Staking
I want to focus only on the differences about results.
Binance, at the moment, give you a 1.75% APY in Binance Flexible Saving with TRX.
I consider only the flexible savings and not also the fixed savings because, on native wallet (TRONSCAN) you “freeze” your TRX at least for 3 days and then you can “unfreeze” them and withdraw or transfer them anywhere you want.
On TRONSCAN you can achieve up to 11% APY and in my video tutorial I explain why.
The following screenshots are from my personal TRONSCAN Wallet.
From December 1st 2020 to January 1st 2021 I received 724 TRX with 113421 TRX freeze, with an average around 22.7 TRX/day. That’s a +0.64% for this month. Surely more than the 1.75% APY of Binance and above all, that is in a decentralized way.
The second one is Algorand (ALGO). You can find a very simple tutorial also for this staking on ALGO native wallet.
Algo Staking tutorial
Let’s focus again on the differences of results.
This is from Binance Flexible Savings:
Binance give a 1.00% APY. Let’s see on native wallet, from my personal Algorand Wallet:
From December 1st 2020 to January 1st 2021 on Algorand wallet I received 2.33396 ALGO of interest on 380.998 staked. That’s mean a +0.61% for this month. Completely different from Binance Staking.
That’s why I consider Binance Staking, in a funny way, a “SCAM”, not for it illegality but for the crazy differences of APY with same conditions and because of the crypto aim to stay more decentralized as possible.
I hope you enjoyed the article and the video tutorials. See you next week with another special appointment of this special month dedicated to Binance. Next Sunday we will talk about Binance Academy and the differences between Tradingview and Binance charting.
Enjoy your 2021!