It's another beautiful week with a wonderful topic from our lecturer Prof. @imagen talking about the different method to generate income with cryptocurrencies. Steemitcyptoacademy as really helped me alot but this topic helped me to understand how more we can earn with cryptocurrencies and am so happy to be one of the participant of this class. So please, follow me as I take you on a journey of showing you the answers to the questions given to me by Prof. @imagen on how we can generate income apart from trading and just holding.
On this topic, I will be using Binance Exchange to explain how we can be in bed sleeping and still be earning with cryptocurrencies, or how we can make use of some crypto in our wallet which we are not ready to withdraw or trade with by locking it in our wallet.
I will be explaining "staking" as one of the ways to generate income using Binance. But, before that, I would like sharing my understanding of Binance Exchange with you.
Binance is a cryptocurrencies exchange that was founded in 2017 by Changpeng Zhoe. It strong forcus then was to trade altcoin but it as grown to become the most popular cryptocurrency exchange. Now, it offers trading in more than 500 cryptocurrency and virtual token. It's an online exchange where traders can trade cryptocurrency and it support many of the most commonly traded cryptocurrencies. Binance exchange has its own blockchain-based token, Binance Coin (BNB).
Binance is a platform for digital currency for excahnge, for investment and many more. It as made many millioners in it order of service because gives and render many service to it user's like Hodl, staking, trading and so on.
Why I choose Binance
Ever since Binance was lunched in 2017 by Changpeng Zhoe it as been a good cryptocurrency exchange. Even, it was rated the largest cryptocurrency exchange in the world in terms of trading volume, because it is on of the best cryptocurrency exchange in the world.
Binance is very reliable, easy to operate and all the best coin is listed on Binance. It has supporting programs that help trader to make investment decisions and it surpport many of the most commonly use cryptocurrencies in terms of trading and staking.
It is a Centralized exchange that has its own Blockchain bases token, Binance coin (BNB). It provide wallet for it user's, where they can keep their digital or electronic funds.
The Service they Offer
Binance as we all know is an exchange, I mean one of the best crytocurrency exchange in the world that offer alot of service for it user's which I will be listing below. Under each service we have different function.
Firstly we have common function
Transfer : Traders make use of this transfer function when they want to make transfer cryptocurrency from P2P wallet to your Spot wallet.
Deposit : This is use when they want make deposit of cryptocurrency or fiat on Binance platform.
Order history : Here, it display all the transactions perform by the trader.
Referral : This give user's more earning, it help user's to earn anytime they invite people to register on Binance with their referral code. Here is my refferal link, you can register on Binance using this link.
Secondly, we have Trading functions
Convert : This function is used when trader want to change a particular cryptocurrency to another cryptocurrency or stable coin.
Spot : On spot trading, traders buy, sell and watch the movement of a particular cryptocurrency with their pairs through Tradingview.
Margin : Here traders buy, sell, borrow crypto from the third party which can also be reffer to as broker in order to save their trading position on binance.
Stock token : This is all about trading equity shares theough crypto coin on Binance.
Futures : Future on Binance is risky and at the same time help traders to make more money for those that can risk crypto
P2P : This is main place for buying and selling on Binance. Here in P2P, you will see many seller of different cryptocurrency you can buy from in diffrent prices and different local currency.
The third function is Finance
Staking: This the process of locking you cryptocurrency to earn profit for a period of time.
Cryto loan: Binance give user's the opportunity to borrow cryptocurrency.
Pool: It also offer this service for trader's in order for them earn an additional cryptocurrency by mining.
Liquid Swap: Here users can swap with cryptocurrencies.
Card: Binance as Visa card which users can have on the exchange platform and it can convert or buy what they like with this for who so ever have it.
ETH 2.0: This ETH 2.0 trader's can earn more by locking there cryptocurrency for a period of time with ETH2.0.
Dual investment: it's a non-principal-protected financial management product that offers floating return.
BNB Vault: In this part of the service, Trader's can stake BNB in order to earn more profit.
And the last one is Technical services and other digital assets related services.
Reward Center: This is where you can find all your reward on Binance.
Task Center: This platform is where traders can locate there task.
Launchpad: This a platform that help advise project teams on how to best issue and launch their token. Binance allow Lunching of Token.
Vote: Here, Traders vote for the next project to be listed on Binance.
Chat: in this platform, you can ask questions and your question will be answer with immediate effect.
FAQ: This platform is all about help and support from the trader to the user's.
News: Binance offer information about cryptocurrency to it user's.
Research: Binance research offer institutional-grade analysis, in-depth insights, and unbiased information to all participants in the digital asset industry.
Blog: Binance provide News and updates from the world’s leading cryptocurrency exchange.
Learderboard: Here in learderboard, user's log in to check their rank on Binance.
Battle: This is for trader's if they want to start. Battle between two cryptocurrency.
API Management: This platform provides access to markets and real-time trading services on Binance through a third-party site or application.
However, I will be expaining the meaning of staking and how we can generate more income with cryptocurrencies locking crypto in our cryptocurrency Wallet.
What is staking?
Some blockchain protocol allow it user's to participate to earn additional cryptocurrency apart from the trading and hodl profit. Some platform, like Binance give a very good service to it user's like staking, referral of people your refferal link to earn crypto, Holding and so on.
Staking can be define as the process of actively participating in transaction validation. It is similar to mining on a (POS) blockchain. On the other hand, POS stands for Proof of stake. it is a mechanism that allow transaction to gather together in blocks and the block is used to create Blockchain.
Locked Staking can also be define as the process of holding funds (proof of stake coin) in your spot wallet for a particular period of time and to support the operations of a blockchain network for the period you are holding the assets.
Staking is a way of making for a period of time by locking your crypto. Using the cryto you are not ready to use or withdraw. We can also say is a way of making profit when sleeping. It helps those that are not ready to use their cryto to earn more by staking it and it doesn't stop it from fluctuating according to the market price fluctuation.
How we can generate more income with cryptocurrencies.
I will be explaining to us how we can generate more income with cryptocurrencies by locking our cryptocurrencies in our for a period of time. We can make use cryptocurrencies that we are not ready to use or the one we are holding.
I will be using Binance App which we can download from Google play store. The first thing I did was to check the staking platform to see the cryptocurrencies that are available for staking because some trader's may have stake a particular cryptocurrency and it won't be available once it enter it limit.
So, after when I login to my Binance account, in the home page there is nothing like staking as we can see in the below screenshot.
I clicked on more to see other services rendered by Binance
I checked and I saw staking under finance. So, I clicked on staking which took me to the below screenshot.
After when I clicked on staking, I saw many list of cryptocurrency which I can lock with their time duration. On the list I wanted to lock Vite in my wallet but I don't have and I needed to purchase so that I can stake vite to earn more profit.
So, the next thing now is to purchase Vite which I will be showing you the process.
I started by clicking on market at the down part of the Binance Exchange platform. After when it shows me the list on cryptocurrency in the market under spot, I typed VITE at the search space at the top.
It display Vite list but I clicked on the on with USDT pairs because I want to use USDT to purchase Vite.
It display to me VITE trading view which also shows me where I can buy VITE or sell. I clicked on Buy because am purchasing
I inserted the amount I want to buy,which Prof. @imagen said anyone that has below 63 reputation should stake at least #15. So, I input the VITE worth of #15.12600 because my reputation is just 60. So I click buy.
I have already open order for VITE and it was deposited in my wallet after few seconds.
So, I went back to staking, I choose VITE, I clicked on the days duration and I clicked STAKE NOW which took me to the page below.
It ask for the lock amount, I clicked on max because to lock all the VITE in my wallet. After that it immediately show me my Estimated interest which will be added to my account with my total VITE after 60days.
I clicked on the agreement of Binance saving to make them know i have read it and if not it won't allow you to confirm. After confirming it took me to another page which shows my cryptocurrency lock confirmation.
The Profitability of this method(Staking)
To staking method as yield me plenty instrest, My Estimated APY is 18.36% and the Estimated Interest is 4.52519769 Vite as you can see the summary of the transaction in the above screenshot image.
In conclusion, using different mathode of generating income with cryptocurrencies can be another source of income for you. Come to think of it, if I have invested more than $15, that is how my interest too will be higher. Binance Exchange is an excellent platform to use method of generating income with cryptocurrencies.
However, am so happy to be one of the participants and it as really help me to know more about method of generating income with cryptocurrencies. I want to say a very big thank you to Prof. @imagen for this wonderful topic and to that will be viewing my post.