What is Defi Staking? How to Staking Defi on Binance?

TutorialsDecember 9, 2021

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Defi Staking is a form of investment called a shortcut to help people access Defi products. So what is Defi Staking? How is the profit from this staking different from another staking on Binance? How to do it on Binance? The following article explains the easiest way to understand this form of money.

What is Defi Staking?

Defi is a form of decentralized finance. Defi Staking is the act of locking crypto assets to become validators in a Defi or blockchain and earning rewards. However, Defi projects (Dapps) are still unfamiliar to most users. To make it easier for users to invest in Defi projects, Binance launches this feature. It allows users to invest in Defi products by staking crypto assets available in Spot Binance wallet and earning profits quickly with just one click.

Users participate in Staking Defi products on Binance with just one click. Binance participates in Defi products on behalf of users, receiving and distributing income.

Advantages

  • Easy to do: Users do not need to manage private keys, open on-chain wallets, search for projects or conduct transactions and perform complicated steps to participate in Staking. Binance performs all tasks on behalf of users in the Staking process.
  • Keeping funds safe: Binance helps users select the best DeFi projects and monitor the system in real time to reduce the associated risks.
  • Higher Earnings: This feature eliminates the fees that come with trading capital but still gets the best return with the same level of risk.

Disadvantages

  • Binance only plays the role of introducing projects and re-networking services related to Staking activities. Therefore, if an on-chain contract is hacked during Staking, Binance is not responsible for the participants’ losses.
  • Because when participating in Staking, users have committed to lock assets into an on-chain smart contract. The early withdrawal process involves complicated manual operations, which incur fees for transferring funds on the blockchain. Therefore, users should choose an appropriate time when registering for Staking and limit early withdrawal.

How to make money with Defi Staking on Binance?

Step 1: Log in to your Binance account. Register using the link below:

* See more: The complete guide Binance from a to z

Step 2: Click the Finance tab, select Binance Earn. Scroll down, choose Go to Defi Staking.

go to Defi Staking

Step 3: Click Stake Now, enter the number of assets you want to stake, read and agree to the Accept terms of the service box, then select Confirm.

confirm-Defi-Staking

After performing the above operation, users find detailed staking information in Wallet/Earn/Defi Staking. Profit is calculated after successful staking and distributed to Spot wallet daily.

Conclusion

This is a simple and effective way to earn money based on Defi projects. If you want to learn about other passive investing features on Binance, visit here.

Investiki.com

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