How to make money on the Binance exchange: an overview of the main ways to make money on trading, mining, staking, farming, etc.
Binance cryptocurrency exchange (site https://binance.com/ru/) has been operating since 2017 and has been holding leading positions almost all the time of its existence. Despite the huge volumes of spot and futures trading, these are not the only options for how you can make money on the Binance exchange. The Btcnewsweb.com editorial office offers an overview of all the current earning methods for 2022 using this site. There are a lot of them, there are active, passive, high-risk and relatively safe ones. Most likely, each user will be able to find a suitable option for themselves.
Spot trading is understood as a trading method in which settlements are carried out instantly at the time of transactions, without delays. The essence of making money is to sell assets for more than they were purchased. For this, trading instruments are used – orders.
Binance supports trade orders of the Market, Limit and Stop-Limit types. The market allows you to instantly buy or sell a specified number of assets at the best of the offered prices. Limit – creates an order in the order book with a specific price, and is executed only if an opposite market order appears at that price. Stop Limit – allows you to schedule the creation of a limit order when a certain price level is reached.
The exchange also supports leveraged margin trading, which allows you to create orders for more funds that you have, and, if successful, make a profit many times more than possible.
Automatic trading on Binance is possible using trading bots – special software. The bot connects to the exchange via API and creates buy / sell deals on behalf of the user. The bot acts in accordance with a strategy predetermined either by the developers or by the user himself. Bots are usually not free, but payment methods vary – either a percentage of the profit or a fixed cost per month / year.
Earnings on listing new tokens
When a token of a new project enters such a popular and highly liquid exchange like Binance, there is a high probability of a rapid rise in the rate. To this end, many traders try to get new tokens in advance (by buying on Launchpad during the initial sale, receiving on Launchpool as a staking bonus), in order to sell them at a good profit.
Examples of tokens that showed a sharp rise after listing:
- Litentry (LIT) went up in price by 7430% in a minute.
- My Neighbor Alice (ALICE) has risen in price by 60,000% in a minute.
- SafePal (SFP) is up 1800% after listing.
- WazirX (WRX) gained 160% in the first second after entering the market.
Of course, not all tokens show such growth. But in the case of Binance, the situation is observed more and more often. This is due to the popularity of the exchange itself, and to the high-quality selection of projects for listing.
The purchase and long-term storage of assets with the expectation of further growth in the rate is called hodling. Theoretically, for this purpose, you can use the Binance exchange, since it belongs to the category of custodians and provides users with accounts for storing assets.
Experts, however, recommend choosing safer options for the holding, such as hardware wallets.
If you still store investments on the exchange, then do not forget to secure your account in every possible way: enable two-factor authentication, come up with the most complex password. This will reduce the risk of hacking from the outside.
Futures are contracts that imply the transfer of assets not instantly, but after a certain time and at a certain price. Perpetual futures contracts with leverage up to 125x are available to the Binance user. In order to trade on Binance Futures, you first need to transfer funds (USDT or BUSD) from your regular account to your futures account.
Futures prices differ slightly from spot prices as they include storage costs. In order to bring the indicators as close as possible to the spot ones in the long term, financing is carried out every 8 hours.
- When the market price rises, the funding rate is positive and Long position traders pay funding to Short position traders.
- Accordingly, if market prices fall, then the funding rate is negative, and participants with Short positions pay participants with Long positions.
On Binance Futures, you can take part in battles (guess which way the price will go). Prize – points that can later be useful to receive prizes in raffles on the platform.
In addition, you can earn money on Binance by participating in a tournament between traders. Tournaments are held on a regular basis. The total prize pool depends on the number of participants. Participants are divided into teams, and then each of them must actively trade in the futures market. The winners are those with the best profit / loss ratio.
Often, additional prizes are also raffled – for example, for team leaders or for voters for certain teams.
Options (Vanilla Options)
The options platform was launched by Binance at the end of December 2020. An option can be described as the right to do something at a certain time. The owner has the right to perform a specific action in the future at a given moment in time, and the buyer can, before the expiration date, exercise this right or refuse it. The seller is obliged to comply with the buyer’s decision.
On the Binance exchange, the determination of the price of options, as well as the calculations for them, are carried out in USDT. The tool gives users more options for portfolio diversification and market behavior management. Users can purchase options to trade or hedge risks, as well as sell or issue (issue) them.
Flexible and fixed deposits
Binance allows you to earn a certain percentage income on your unused cryptocurrency. There are two options for this:
- Fixed rate deposit. Implies blocking funds for a period of 7 to 90 days. After that, the funds are returned with interest. This method is only available for USDT, USDC and BUSD stablecoins.
- Floating rate deposit. There is no definite period, assets can be withdrawn at any time, but the rate is also an order of magnitude lower. The option is available for a large number of different cryptocurrencies and stablecoins (about 60).
The process of depositing and withdrawing funds is extremely simple, carried out in a few clicks. Just click “Transfer Assets” next to the selected cryptocurrency, then enter the amount, specify the term (for deposits with a fixed rate), agree to the terms of the platform and confirm the transfer.
This way of earning allows you to get passive income from staking the native cryptocurrency BNB (Binance Coin). At the same time, one or another additional asset within the Launchpool can also be distributed additionally – for example, at the time of this writing, this is ALICE of the My Neighbor Alice project. Thus, the BNB Vault is a BNB yield aggregator. By depositing an asset, the user at the same time takes part in Launchpool, Deposits, DeFi-staking, receiving standard and additional rewards.
You must click the “Start Staking” button and enter the amount of BNB you want to use. It is also possible to set up an automatic transfer so that all BNBs from the spot account are sent to deposit.
In addition to BNB, Binance makes it possible to earn many more coins from staking. The method is divided into two directions:
- Fixed staking PoS coins. There are 48 cryptocurrencies available. The rate for each of them is individual, as is the minimum deposit amount. The term is strictly limited, from 15 to 90 days.
- DeFi staking. The opportunity to get higher profitability by participating in certain products of decentralized finance (Curve, Compound, Kava, etc.). The advantage of DeFi staking from Binance is its simplicity – you do not need to interact separately with many different protocols, everything is collected in one place and is intuitive.
There are only five products available for DeFi staking so far. At the beginning of each line there is a hint as to which decentralized protocol is used to generate income. The terms are flexible. Interest is regularly adjusted based on supply / demand for a particular asset.
Ethereum is switching from the Proof-of-Work algorithm to the Proof-of-Stake algorithm, and now the stakers can make their first deposits. If you do it directly, then the minimum possible amount is 32 ETH. If you don’t have that amount, you can still participate with Binance.
The principle is that users block their Ethereum in the staking pool and receive BETH tokens in return. These tokens in the future, when the PoS network is fully launched, will give the right to receive their share of the income.
Liquidity Delivery in Liquid Swap
Liquid Swap is a decentralized cryptocurrency exchange tool with liquidity pools. Users can instantly exchange one asset for another through it with minimal commissions. But the main thing is that this is another way to make money on the Binance cryptocurrency exchange – by contributing liquidity to the pools and getting a reward for it. Contributing funds to certain pools marked with the “Additional Rewards” icon, respectively, allows you to receive an increased level of income.
The Binance Launchpool platform creates additional incentives for stakers, allowing them to receive tokens for new promising projects by investing in certain assets. For example, at the time of this writing, all stakers in pools with BNB, BUSD and CHR additionally receive a certain amount of ALICE tokens. This is the 16th such action.
One of the main advantages of receiving new tokens is that sometimes they show incredible growth in the rate in the first days or even hours after listing. This is a good opportunity to earn additional income.
Miners can earn money by connecting to the Binance Pool. Supported hashing algorithms are SHA256 and Ethash. Thus, it is possible to mine BTC, BCH, BSV and ETH cryptocurrencies. Revenue is allocated according to FPPS and PPS + models; maximum income stability is ensured by instant settlements.
The pool commission is 2.5% of earnings. By working in conjunction with the Binance crypto exchange, the user gets a convenient opportunity to earn assets and immediately use them for trading / investing.
At almost any given time, there is a competition or tournament on Binance. This is a good opportunity to earn income by trading, participating in AMA sessions, educational activities, etc.
Information about current competitions can be found:
- In our article.
- On the company’s blog https://www.binance.com/ru/blog.
- In the official group https://vk.com/binance or other social networks.
The level of possible income from referrals reaches 40% of their commissions. In addition, the referrer’s average daily BNB balance is taken into account.
If this indicator is less than 500 BNB, then the referral reward is 20%, and referrals are also encouraged in the amount of up to 10% of income. If the indicator exceeds 500 BNB, the rate increases to 40%, the maximum reward for referrals is up to 20%.
We have listed the main ways to make money on the Binance exchange that are available for use in 2021. Of course, the exchange will replenish and expand its functionality, because this is the best way to attract new users and keep old ones. Following the trends in the cryptoindustry, the site provides an opportunity to receive active and passive income, which is most important, in an intuitive interface. Almost all actions are performed in a couple of clicks and does not cause difficulties even for beginners. However, it should be noted that most of the possibilities require identity verification.