People usually start investing in cryptocurrencies through spot trading, which involves the direct buying and selling of assets. However, once they accumulate crypto assets, many investors face the dilemma of how to effectively manage them when not actively trading. This is where Binance Earn comes into play, offering a platform that allows cryptocurrency holders to earn income from their idle crypto assets.
Passive investing is a strategy that involves putting money into assets, such as stocks or cryptocurrencies, and letting it appreciate over time. This approach can be appealing because it allows investors to generate a steady stream of income without engaging in frequent trading, which may involve additional risks. In the field of cryptocurrencies, passive investing can be conducted through various means, such as staking, yield farming, and lending.
Binance Earn is a great entry point for those looking to start with passive investing. It provides a range of products designed to cater to both newcomers and seasoned investors. Binance Earn includes options like flexible savings, which allow for instant deposits and withdrawals, and locked savings, which typically offer higher interest rates in exchange for locking up funds for a specified time period.
Getting started with Binance Earn is quick and simple. Users first need to log into their Binance account and navigate to the 'Earn' section. This interface presents the various savings products, such as Simple Earn, High Yield, and Auto-Invest, along with a summary of the holdings and returns based on the last 30 days.
Investors can browse through a list of available products, each containing the estimated Annual Percentage Rate (APR) and the duration of the investment (see image below). To start earning, users have to select a product and subscribe to it. They can decide on the investment amount and confirm the subscription. The Flexible options enable the withdrawal of funds at any time, while Fixed products require the investor to commit their funds for a certain period in order to receive the rewards. It’s worth noting that users are still able to withdraw their funds at any time, even when using the locked products. The difference is that users will give up any accrued rewards when withdrawing from locked products before the predefined date.
Learn more: A Beginner’s Guide to Binance Earn.