While the rate of savings on the bank balance is decreasing rapidly, many investors who do not wish to trade are looking for other ways that will give them a good portion of the profit. So in this article, we will discuss Binance savings as this is the alternative to earning other than trading.
The average savings accounts in banks provide 0.02% interest annually. This implies if you submit $1000 on January 1, you will receive an additional of less than $20 by the end of 31 December. Nobody can be happy with such an amount of interest unless the amount you put is huge that will give you a decent interest amount.
So an alternative to this can only be provided by crypto. But do you think crypto trading incurs losses and you are ready for that? Then you can consider savings at the trading platform.
What Is Binance Savings?
Binance savings refer to lending digital currency to Binance. In simple words, you give your cryptocurrencies to crypto trading platform, and the platform gives you rewards in return for that while you do nothing.
How To Use Your Savings At Binance?
The savings process of Binance work like banks. In banks, you transfer their money and they make investments wherever they feel like and give you a portion of the profit. With this the case is the same. You provide your crypto to Binance and they pay you in return for that. At times those returns are more than the interests that are paid by the banks.
Interest in the Binance savings calculator is measured for lending and borrowing money. When you lend money you receive Binance savings interest and when you borrow the money you pay interest. This is that simple.
In this case, you are lending your crypto to Binance, and for that the platform pays you a fee which is known as interest.
The disadvantage is the return may not be as high as one earns from trading crypto but the advantage is there is no Binance savings risk of loss as that is in crypto trading.
Types Of Savings Offered By The Platform
Savings in Binance are generally categorized into two types: Flexible savings and locked savings. Both work as savings but have different characteristics. So let us have a look at those savings in detail.
The term flexible savings speaks for itself. With flexible savings, your crypto is available at your disposal. You can either withdraw your funds or you can also trade with them. By flexible savings, you open an avenue to earn by just lending your digital currencies to the cryptocurrency trading website. The saving interest for flexible savings at Binance is calculated on a daily basis. But if you try to withdraw your funds before the payment of daily interest then you will receive nothing. So ensure that you withdraw your interest from flexible savings after the time of interest payment.
Locked savings in Binance is the counterpart of flexible savings. Here you lend your digital currencies to Binance for a fixed period of time. This is the reasons as to why you should choose locked savings:
- You identify precisely the amount of interest you get paid.
- You have an idea of exactly when you’ll get your crypto back.
- Binance knows that they have access to your digital currency for this particular period.
- Binance will not take the risk of the crypto being removed from its portfolio in the meantime.
List Of Crypto Available For Flexible Savings At Binance:
There are more than 1000 cryptos currently in the market but not all can be lent at Binance. Binance will look for cryptos for flexible savings that have present demands. So here is a list of all such cryptos that Binance accepts for flexible savings.
List Of Crypto Available For Locked Savings At Binance:
There are more than 1000 cryptos currently in the market but not all can be lent at Binance. The platform will look for cryptos for locked savings that have long term demands. So here is a list of all such cryptos that come on a subscription basis for locked savings.
Binance is on the verge of providing innovative dimensions in the crypto market. It is not merely a digital currency exchange; it does everything to keep its customers active in the digital currency arena. So they are here with Binance savings where the customers in spite of trading can give their crypto to Binance and earn interest and rewards from them.
Frequently Asked Question
1. What are Binance savings?
As a digital currency savings account, it provides many options that will help you to use your crypto holdings to earn passively from them.
2. Are Binance savings safe?
This procedure backs up both Token level risk free and Dollar level risk free investment. Binance saving is generally the easiest option to understand. You simply lend your token into Binance saving, and you start to receive a fixed rate of interest on a daily basis as specified on the website.
3. How does Binance flexible savings work?
Flexible Deposits are mainly your Binance crypto savings account. You provide your funds to earn interest with the option to withdraw them at any time. As such, Flexible Deposits will provide smaller returns than Fixed Deposits.
4. How do I withdraw from savings Binance?
To withdraw your funds, select [Earn] on your [Fiat and Spot] Wallet. Then select [Redeem] on the asset that you want to cash out. Your interest principal will be credited at once, you can check the balance of your fund in the fund list.