What is Locked Staking Binance? Way to Locked Staking
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Staking is a way of staking an amount of crypto to help support the implementation of security for the blockchain to receive rewards. So what is Locked Staking Binance is? How to get rewarded with Locked Staking Binance? After reading the article below, investors on Binance will know how to use this feature proficiently.
What is Locked Staking Binance?
If you’ve ever learned about how Bitcoin works, everyone knows Proof of Work (PoW). This is the mechanism by which miners solve complex algorithms to add new blocks to the blockchain. In return, they will receive a reward. However, Proof of Work (PoW) takes a lot of effort and cost.
Meanwhile, Proof of Stake is a less resource-intensive alternative that still produces and validates new blocks by staking. Staking participants stake many cryptos for a specific time, the number of locked cryptos is randomly selected to generate a new block. At that time, staking participants will receive rewards, similar to miners who solve the blockchain’s algorithm.
So what is Locked Staking Binance? Locked Staking Binance is where participants lock up some of their cryptos on Binance to stake and earn rewards. The larger the number of crypto deposits, the higher the chances of being selected and the bigger the depositor’s reward.
Locked Staking Binance calculator
How to calculate the reward when participating in Staking is one of the issues that many people are most interested in. However, there is no specific formula for this. Each blockchain network uses different ways to calculate rewards. Many factors go into determining the reward ratio, including the total number of coins being staked on the network, staking period, and coin used for staking… stake at a fixed percentage. Participants can preview the profit rate right on the window when staking. Especially when the market drops, staking participants are still guaranteed to receive enough interest. Therefore, this form is used by many investors during the down market period to optimize profits from the amount of cryptocurrency they own.
What is Locked Staking Binance risk?
Binance is the largest trading platform by volume and comes with the best security in the crypto market. In addition, Binance has also selected the best projects for users. Therefore, when participating in Locked Staking Binance, there is no risk of losing the crypto used to deposit. But the staking time is usually 1-3 months, which is a long time. During that time, there may be strong market fluctuations. The asset value will decrease significantly. This is the most significant risk participants can face when doing Staking.
Way to Locked Staking on Binance
Step 1: Log in to your Binance account. If you do not have a Binance account, you can register by following the link below:
* See more: The complete guide Binance from a to z
Step 2: Access the Locked Staking feature
- Click on the Finance tab, select Binance Earn
- Scroll down to the Locked Staking area, select Go to Staking
Step 3: Select a project to participate in Staking
On the staking page, participants can see a list of all projects that allow staking and the annual yield (APY) corresponding to the required time and minimum amount. Click Stake Now.
Fill in the required information: Amount of crypto you want to stake, check the terms box, and click Confirm.
After confirmation, staking officially begins. Once the process is complete, the deposited crypto is automatically redeemed and returned to the participant’s Spot Wallet.
Above is information to help readers understand what Locked Staking Binance is and instructions for staking. Staking is a straightforward form of passive earning on Binance. If you want to learn other forms of passive income investing, follow here.
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