Binance is the world's TOP exchange with more than 200 million users, in addition to reputation, effective money-making opportunities on Binance also contribute to this success. So how to make money on Binance? Let's find out in the simplest & easiest way!
1. Making Money on Binance for Beginners
Binance, the world's leading Crypto exchange, is not only famous for its security and large trading volume but also highly appreciated for its diverse product portfolio. This is an ideal platform for beginners to learn how to make money effectively on Binance. Some notable reasons include:
Suitable for people with little capital: Binance allows you to trade with small capital, starting from only 30 to 50 thousand VND, you can also trade an order. This helps newbies not to worry about big risks from the beginning. Unlike some other decentralized exchanges, you must have a certain amount of capital to pay fees and trade.
Diverse ways to make money: From basic transactions such as spot trading, staking, to Binance Earn or Launchpool programs, you can make money, not just simply buying and waiting for the price to increase like some other investment channels.
Good support for newbies: The platform offers free learning tools, 24/7 customer support, and a user-friendly interface, making it easy for newbies to join.
However, Binance's ultimate goal is still to maximize profits. Every time you trade, stake, or participate in programs on the exchange, Binance will earn a portion of the profit through transaction fees, event advertising, and other services. Therefore, before participating in any activity on Binance, you need to take the time to carefully research to assess the suitability for your financial situation and investment experience.
Binance Exchange
To get started, sign up for a Binance account and use the referral code "86849944" to get a 20% discount on trading fees and a 600 USDT bonus!
2. 10 effective ways to make money on Binance
Currently on Binance, in addition to regular buying and selling transactions, the floor also has many other ways to find profits, arranged in the following order of popularity:
2.1. Spot trading
Spot trading is one of the most basic forms you can do on Binance. Spot trading is when you buy and sell cryptocurrencies, own the coins directly, and store them in your Binance account. This form is similar to buying and selling stocks or foreign currencies, suitable for beginners because of its simplicity and accessibility.
How to make money: With this method, you will buy coins at low prices and sell them when the price increases, taking advantage of the price difference to make a profit. To maximize efficiency, you need to clearly define your investment strategy: long-term investment or short-term speculation? Need to equip yourself with knowledge of fundamental analysis or technical analysis? And many other knowledge to start your trading journey.
If you pursue investing, you will choose coins with solid foundations, long-term growth potential, and hold them for a long time to benefit from the value growth. Investing requires you to have a long-term vision and patience.
Meanwhile, speculation focuses on buying and selling quickly to take advantage of short-term market fluctuations. It often uses trading strategies and techniques such as swing trading, scalping, or day trading to profit from short-term price changes.
Pros and cons:
Advantages: Easy to access, suitable for beginners, lower risk as no need to borrow capital or use leverage.
Disadvantages: You can only invest with the money you have and profits will be limited when the market is less volatile.
2.2. Futures Trading
Futures trading on Binance is a form of trading where you can buy or sell contracts based on the price of a coin in the future, instead of buying the coin directly immediately.
How to Make Money Trading Futures: You need to predict whether the price of an asset (like Bitcoin) will go up or down in the future. You can “buy” (long) if you think the price will go up, or “sell” (short) if you think the price will go down. If your trade is successful, you will make money from the price difference, but if your prediction is wrong, you will lose money.
Binance offers leverage, which allows you to trade with more capital than you have. However, using leverage can also increase the risk of losing money.
Pros and cons:
Advantages: High profitability, you can make profit whether the market is up or down.
Disadvantages: Very high risk, you can lose all your capital, this form requires you to have in-depth knowledge of the market, technical analysis and risk management skills.
2.3. Margin Trading on Binance
Margin Trading on Binance is a way for you to borrow money from Binance to be able to trade with more money than you have. You use your assets as collateral to borrow money and buy more coins.
When the asset price increases, you sell and profit from the price difference, but if the price falls, you make a loss and may have to pay back the borrowed money.
Distinguishing between margin trading and futures trading:
Margin trading is when you borrow money from the exchange to buy more assets, and have to pay back the loan with interest.
Futures trading is where you buy or sell contracts predicting the future price of an asset without borrowing money, but you can use leverage to trade with larger amounts of capital. Futures do not require you to pay back the borrowed money, but the risk is higher.
Pros and cons:
Advantages: Increased profitability through leverage, taking advantage of short-term price fluctuations.
Disadvantages: Higher risk of losing capital, you can lose more than your initial capital if the market goes against your expectations.
2.4. Binance Launchpool
Binance Launchpool is a fundraising platform for new projects on the Binance exchange, allowing users to participate in receiving free tokens by staking FDUSD or BNB.
How to earn: You can stake BNB or FDUSD in pools on Launchpool to receive new tokens for free. This helps you access potential projects without investing additional capital. There have been many successful projects when listing through this form such as: Sui, Pixels, Pendle, ...
Advantage:
If you already hold BNB or FDUSD, this is an added benefit of being able to stake and receive additional free tokens from new projects.
Disadvantages:
This form will lock your assets for a short time (from 3 - 7 days) and sometimes the reward project that the value of the assets you stake decreases can affect the profit.
Whales with large assets can get more tokens while those with small assets will get less tokens, so it requires you to own a large amount of BNB & FDUSD to make a lot of money from this form.
2.5. Binance Pre-market
Binance Pre-market is a unique trading feature that combines Binance spot and Binance launchpool, allowing users to trade cryptocurrencies before they are officially listed on Binance spot.
How to make money: You can participate in Pre-Market programs to buy assets early at low prices, then resell them when the assets are listed or officially launched. This is a useful tool for those who want to trade new projects that are preparing to list on Binance, especially hot projects with high growth potential.
Pros and cons:
Advantages: High profit potential, opportunity to participate in new projects with potential early.
Disadvantages: High risk if the project fails or does not achieve the expected value, this form also requires you to carefully research the projects before participating.
2.6. Binance Earn
Binance Earn is like depositing your money and receiving daily or monthly interest. This product is a platform that aggregates Binance's diverse investment products, including Staking, savings, Dual Investment, etc.
How to earn: Binance Earn offers products including:
Simple earn: This is a form of savings, including 2 products: flexible and fixed. With the flexible product, the APR will be lower, allowing you to withdraw money at any time without tying up capital, making it easier to manage risk. The fixed product will have a higher APR, with deposit terms from 30 to 120 days. However, if you withdraw money before the maturity date, the accumulated rewards will be lost.
Dual Investment: is a product that gives you the opportunity to buy low or sell high cryptocurrencies at your desired price and date in the future, and earn rewards no matter which way the market goes.
ETH Staking: This product provides an easy way for you to stake ETH. Instead of having 32 ETH to participate in staking directly on the Ethereum network, you only need a minimum of 0.0001 ETH to stake on Binance.
Pros and cons:
Pros: Generates passive income, lower risk than trading, doesn't require you to constantly monitor the market. Especially useful when you deposit BNB in Simpler Earn, earn profit and qualify for 3 more products: Launchpool, HODLer Airdrop and Megadrop.
Cons: Interest rates can be low, some products require locking assets for a certain period of time, which can affect your trading. Additionally, price fluctuations of the assets you deposit may affect your returns.
2.7 Binance HODLer Airdrop
Binance HODLer Airdrop is a free token distribution program by Binance for users who hold BNB Coin and register for Simple Earn products.
How to earn: To participate in this program you need to register Simple Earn product with BNB Coin. Airdrop rewards will be calculated based on your average BNB balance deposited.
Pros and cons:
Advantages: With this new program, you can earn interest from holding BNB in Binance Earn and receive free tokens from Binance Holder Airdrop without having to complete complicated tasks.
Disadvantage: If the price of BNB drops during your participation in the program, even if you receive airdrop tokens, it may not compensate for the value of the BNB you have invested or are holding.
2.6.2. Binance Megadrop
Binance Megadrop is where users can lock BNB and complete tasks in their Web3 Wallet to receive early rewards from selected projects, before their tokens are listed on Binance.
How to earn: You can participate by locking BNB into the fixed Binance Simple Earn product or by completing tasks on the Binance Web3 wallet to earn points. These tasks are usually simple and don't cost much. Rewards will be distributed based on the total points a user has achieved compared to the points of others.
Pros and cons:
Pros: Get free tokens from projects.
Disadvantages: You have to deposit a fixed amount of BNB, and the decrease in BNB price can affect your capital and profits.
2.7. Binance Web3 Wallet
Binance Web3 Wallet is a multi-chain wallet integrated directly on the Binance platform, allowing users to easily access and make transactions on multiple blockchains such as Ethereum, Binance Smart Chain, and many other blockchain platforms.
How to earn: You can use this wallet to participate in DeFi applications such as lending, farming, staking, or trading NFTs, thereby earning profits. In addition, during this time, Binance Web3 Wallet is launching many exclusive airdrop programs, allowing you to get free tokens when experiencing potential projects.
Pros and cons:
Advantages: Simple and easy-to-use interface, Binance Web3 wallet helps you manage and control your assets, easily participate in DeFi and NFT projects, along with the opportunity to receive airdrops of new projects
Cons: Requires technical knowledge, risks losing assets if you mismanage your wallet or encounter attacks.
2.8. Referral Program
Another way to earn money on Binance is to join the Refer a Friend program. This is a Binance program that encourages users to refer friends to the platform through their referral code. When your friends trade, you will receive a commission from their trading fees.
How to earn: You can share your referral link with your friends, family or on social media channels. When your referrals sign up and trade, you will receive a percentage of the trading fees. If you want to get started right away, you can use your Binance referral code 86849944 to get 20% off trading fees as soon as you create your account and get additional rewards when you refer your friends.
This is a form of passive income, ideal for those who have a community of followers. Although not a direct investment, Referral Program can bring a steady source of income if you know how to exploit it well.
Pros and cons:
Advantages: Passive income, you do not need to invest capital. In addition, this form also helps you expand your user network.
Disadvantages: To effectively take advantage of profits, you need marketing skills with this form. Your income depends on the number and level of activity of the referred people. If you do not have a strong network or communication channel, the profit will be insignificant.
2.9. Binance NFT Marketplace
Binance NFT Market is a trading platform for NFTs (Non-Fungible Tokens), including virtual photo collections, in-game assets, and many other digital assets. NFTs have been growing rapidly in recent years, attracting the attention of many users. To effectively make money from NFTs, you need to have knowledge about this market and the ability to evaluate the value of the assets you own.
How to make money: You can make money from buying and selling NFTs that have the potential to appreciate in value, or create and sell your own NFTs if you're a creator.
Pros and cons:
Pros: High profit potential due to rising NFT values, Binance's trading platform is easy to use, and trading costs are lower than other exchanges.
Disadvantages: NFT values are highly volatile and difficult to predict, and of course not all NFTs will be liquid. Therefore, optimizing NFT monetization requires knowledge of the market and the ability to assess the growth potential of NFTs.
2.10 Participate in Binance events
In addition to the above products, Binance also regularly organizes attractive events to attract users such as:
Trade for rewards: Complete required trades to receive attractive rewards, including reduced trading fees or free coins.
Give vouchers: Receive cash vouchers or discounts when participating in promotions.
Trading Fee Refund: Part of your trading fees can be refunded under special exchange programs.
Exclusive Events: Binance also regularly partners with major communities to host exclusive giveaway events.
3. Conclusion
Binance offers a wide range of tools and products to earn money, from basic trading to complex investment products. Although this is a very potential opportunity, you also need to have a clear strategy, always manage risks and update changes in the market to maximize your profits.
