Passive income from Binance can be generated through several methods. Here are some of the most common ones:
### 1. **Staking**
- **What it is:** Staking involves locking up a certain amount of cryptocurrency in a wallet to support the operations of a blockchain network. In return, you earn rewards.
- **How it works on Binance:** You can stake various cryptocurrencies directly on Binance. The platform handles the technical aspects, and you receive regular rewards based on your staked amount and the staking period.
### 2. **Savings**
- **What it is:** Savings products allow you to earn interest on your cryptocurrency holdings.
- **Flexible Savings:** These products allow you to deposit and withdraw your assets at any time. Interest is typically lower but offers liquidity.
- **Locked Savings:** These products require you to lock your assets for a fixed period, typically offering higher interest rates.
### 3. **Binance Launchpool**
- **What it is:** This platform allows you to farm new tokens by staking Binance Coin (BNB), Binance USD (BUSD), and other cryptocurrencies.
- **How it works:** By staking your assets in the Launchpool, you can earn new tokens over a specific period.
### 4. **Liquidity Mining**
- **What it is:** Also known as Yield Farming, this involves providing liquidity to a decentralized exchange (DEX) and earning rewards in return.
- **How it works on Binance:** Binance provides various liquidity pools where you can contribute your assets and earn a share of the transaction fees generated by the pool.
### 5. **Dual Investment**
- **What it is:** This is a structured product that allows you to invest in one cryptocurrency and earn returns based on the performance of another.
- **How it works:** You deposit your assets and select a target price and settlement date. Depending on the market performance, you either earn interest in the original asset or the alternate asset.