The Ultimate Guide to Earning Crypto with Binance Lending

Looking for the best article on earning crypto through Binance?, then “The Ultimate Guide to Earning Crypto with Binance Lending ”, is for you.

Whether you’re a crypto HODLer or trader, you have plenty of choices to earn passive income in the cryptocurrency space. One of these ways is lending – and good news; it is incredibly easy to do on Binance! What makes lending very convenient is that you can enjoy gains regardless of how the wider market is performing.

In this article, we’ll discuss how Binance Lending works, what types of lending products you can choose from, and how you can get your funds to work!

If you already have a Binance account, it’s profoundly easy for you to get involved. If not, register now so that you can take part in this new financial revolution!

What is Binance Lending and how does it work?

Binance Lending lets you easily grow your wealth by accruing interest on your funds. Essentially, you’re lending your assets to margin traders on the platform, and they pay interest to you in return for borrowing your funds. You can choose from a wide variety of options, including Bitcoin (BTC), Ethereum (ETH), Binance USD (BUSD), Tether (USDT), and many more.

There are two types of lending products on Binance Lending: Fixed Deposits and Flexible Deposits. Fixed Deposits mean that you subscribe (lock) your funds for a predetermined amount of time and interest. In contrast, Flexible Deposits allow you to withdraw your funds at any time, and the interest rate changes over time. Since you have the flexibility to access your funds, the interest rates will subsequently be lower for Flexible Deposit products.

Binance Lending works with a first-come, first-served basis, meaning that whoever gets their funds subscribed to a product first gets to earn the interest. The interest is distributed every day for Flexible Deposits, or on the redemption date for Fixed Deposits.

Binance Lending is continuously evaluating new cryptoassets to support as lending products. Binance follows strict selection criteria, but generally, legitimate products that have demand and deliver the best value to users will likely be supported.

How to use Binance Lending

Using Binance Lending is very easy; it won’t take you more than a few clicks!

1. Log in to your Binance account. If you don’t have an account, register and create one in minutes.
2. Hover on Earn on the top bar, and click on Lending; or go to the Binance Lending page with this link.
    

3. Click on Products.
4. Select the type of lending product you’d like to use: Flexible Deposits or Fixed Deposits.
5. Select the product you’d like to subscribe your crypto to, and click on Subscribe. You’re done!

It’s worth noting that the BNB you have subscribed to any Binance Lending product will still count towards the snapshot calculations for Binance Launchpad. This means that you can participate in Initial Exchange Offerings (IEOs) while earning interest on your holdings at the same time!

Fixed Deposits

A Fixed Deposit lending product means that you subscribe your funds for a predetermined amount of time and interest. This option is better suited to you if you’re a long-term investor, committed to holding your crypto. Since you’re holding for the long term, why not earn interest at the same time!

Note that if you subscribe your crypto to a Fixed Deposit product, you won’t be able to access your funds for the duration of the subscription. However, if you have subscribed to one but really need to access your funds, you can transfer a portion of them to Flexible Deposits.

You subscribe to a Fixed Deposit product in specific amounts called lots. Each lot represents a set amount of cryptocurrencies that will earn interest based on a predefined rate. Also, to avoid a few large holders buying up the entire pool, there’s an individual cap on each account for the number of lots they can buy.

Typically, the lending period is either 14 or 30 days. On the day of subscription, Binance Lending deducts the funds from your exchange wallet and adds them to your subscription wallet for the product.

For Fixed Deposits, you’ll see the following information on the platform:

• Annualized Interest Rate – The percentage return you’d get if you subscribed to this product for 12 months.
• Duration – The duration for which your funds will be locked and earning interest.
• Lot Size – The amount of crypto that one lot contains. For example, 1 lot = 100 BUSD.
• Maximum Subscription – The maximum amount an individual account can buy from this product.
• Subscription Starts – The date when you can start subscribing funds to this product.
• Subscription Ends – The date when the subscription period ends. Note that the subscription period might end earlier than this date if the total cap is filled.
• Value Date – The date when your funds start earning interest.
• Redemption Date – The date when your funds are unlocked, and your interest is paid out.

Click here to get started with Binance Lending!

Flexible Deposits

Flexible Deposits are essentially your crypto savings account. You subscribe your funds to earn interest with the flexibility to redeem them at any time. As such, Flexible Deposits will yield smaller returns than Fixed Deposits.

It’s important to note that when you subscribe your funds to a Flexible Deposit product, they are locked for that day. This means that they won’t be accruing interest, and you won’t be able to withdraw them until the following day at the earliest. From the day after your subscription, your funds are unlocked, earning interest, and redeemable at any point. This is to prevent the system from being exploited.

When you redeem, you can choose either standard or fast redemption. When you choose fast redemption, your funds will be immediately available, but you won’t get that day’s interest paid out. If you choose standard redemption, your funds will unlock the next day, and you’ll get the interest even for the day when you initiated the redemption.

The interest for Flexible Deposit products is distributed daily. Please note that Flexible Deposit products are closed for subscription from 23:50-00:10 UTC. The subscription quotas are also reset during this time. As such, if the daily quota for a lending product is full, your best bet is trying to get in early on the next day.

Closing thoughts

Binance Lending is an utterly simple way to earn rewards with your cryptocurrency, ideal for beginners and long-term veterans alike. Subscribe your funds to either of the available lending products and start earning interest on them the very next day!

That’s the much we can take on the topic “The Ultimate Guide to Earning Crypto with Binance Lending“.

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