What is ETH 2.0 staking? How to Staking ETH 2.0 on Binance?
– Top Online Cryptocurrency Courses from $9.99 Get now!
Cryptocurrencies offer various earning opportunities. The strong price fluctuations cause many inexperienced traders to lose money. However, Binance is a platform that provides a variety of products that help investors grow their crypto assets daily. One of them is ETH 2.0 Staking. This article explains how to do it.
What is ETH 2.0 staking?
ETH 2.0 is an upgraded version of the scalability, security, and network sustainability of Ethereum’s existing ETH 2.0 is scalability, security, and network sustainability upgrade for Ethereum’s current blockchain from Proof-of-Work to Proof-of-Stake. Initially, all Ethereum transactions are secure by solving problems in the blockchain to complete the transaction. Whoever solves the equation first will be rewarded. That mechanism is called Proof-of-Work. The PoW mechanism is increasingly demanding, so mining is increasingly difficult.
Ethereum 2.0 uses a Proof of Stake (PoS) consensus mechanism with 3 phases: phase 0 will be implemented in 2020; Phase 1 / 1.5 will be deployed in 2021; Phase 2 is expected to launch in 2022. Proof of Stake (PoS) solves the problem of Proof-of-Work by having “validators” stake a minimum of 32 ETH directly on the Ethereum.org homepage for two days years to become a transaction validator. In return, the “validators” will receive their reward. However, this requires a large amount of capital and comes with some risks, such as extending the ETH lock time to complete the ETH 2.0 update.
This feature overcomes the above disadvantages, making it easy for investors to perform Ethereum 2.0 staking. Investors can start from 0.1 ETH, and Binance will bear all costs and other risks on-chain. Binance evenly distributes staking rewards to users.
How does ETH 2.0 Staking on Binance work?
When users are staking ETH 2.0 on Binance, Binance provides users with BETH tokens (Binance Ethereum). This token is worth 1 ETH, which is equal to 1 BETH. Users need to hold BETH on the Spot Binance account and get daily APY (interest). After Phase 1 is completed, whatever your balance on BETH is converted to ETH at a ratio of 1:1. Especially when staking, users can stop staking at any time.
The risk users may face when staking is a price change. When ETH drops in price, investors can be anxious to see the value of their investments suffer. However, short-term price fluctuations should not be a problem if the investment is long-term for many years. Also, APY (annual rate of return) is not guaranteed. The more ETH staked, the more APY decreases.
How to staking ETH 2.0 on Binance?
Step 1: Log in to your Binance account. If you don’t have a Binance account, register using the link below:
* See more: The complete guide Binance from a to z
Step 2: Access the ETH 2.0 Staking feature: Click the Finance tab, select Binance Earn. Scroll down to the ETH 2.0 Staking area, choose Go to ETH 2.0 Staking.
Step 3: Perform ETH 2.0 Staking: In the Staking page, click Stake Now, enter the amount of ETH you want to stake, read and agree to the Accept terms of the service box, then select Confirm.
After completing the above steps, the BETH bonus is paid to the spot account daily. If a user stakes ETH today, Staking is credited the next day, and the reward is paid on T+1.
Above is some information about ETH 2.0 Staking on Binance. This is the easiest and most flexible way to earn rewards. If you want to learn about other passive investing features on Binance, visit here.
Read more: Binance