Step By Step Process on How to Stake Coins on Binance Exchange and Earn Interest

What is Staking ?

If you're a crypto investor, staking is a concept you'll hear about often. Staking is the way many cryptocurrencies verify their transactions, and it allows participants to earn rewards on their holdings. Many long-term crypto holders look at staking as a way of making their assets work for them by generating rewards, rather than collecting dust in their crypto wallets.

In this article I'll not give a details about staking. I'll provide just step of Staking on Binance exchange. So let's begin with an example :-

• 1st Step : Open your Binance Exchange platform either Mobile/Desktop. After that Log in into your accoun and set your screen in home section. And make sure that your Coin/ Token in under "SPOT" wallet.

• 2nd Step : If you're a android user then click "MORE" after that goto "EARN" section

and click to "STAKING" or If you're a Desktop user then click on "EARN" then click on "STAKING"

• 3rd Step : After to click STAKING a new page will be open and there will show two options. One is "LOCKED STAKING" and another is "DeFi STAKING". Set your page into "LOCKED STAKING" and you'll show a long list which there are many token and coin.

• 4th Step : After that search your token or coin which you want to stake into search bar or you can find out your token/coin in the list.

(Note : You can stake that token/coin which Binance prove to stake. If in the list your token or coin is missing that means you can't stake that coin/token).

• 5th Step : Now I'll show live staking. I select my token (SHIB) in the search bar. And details page will open your screen like that

There are several reward options ☝️available like for 120 days duration rate of interest is 12.09 APY. I'll select 10.12% APY for 10 days. Now look at that I've 70lac 20k 319 SHIB token but I can only stake 70lac. Because Binance give minimum 200 SHIB & maximum 70lac SHIB for the 10 days staking. The minimum & maximum amount is different in different staking options.

• 6th Step : Now I selected the Maximum SHIB and see the summary box. I'll get 19408 SHIB after 12 days. That means for 10 days duration period if I stake 70lac SHIB then after 12 days I'll rewarded 19408 SHIB more.

• 7th Step : Give permission on "BINANCE STAKING SERVICE AGREEMENT" & then "CONFIRM"

Now there have a question that, I stake for 10 days but it will take 12 days to get my reward. Yes, its because Stake Date & Redemption Date not count in duration on staking. Look on this below, your confusion will be clear :-

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Stake Date : The initial Date Time of staking
Value Date : The exact DateTime when staking begins.
Interest Period : Time between the distribution of accrued interest.
Interest End Date : The exact DateTime when staking ends.
Redemption Period : The redemption time of the asset (early or at the end of staking).
Est. APY : estimated percentage of annual interest.
Estimated Interests : estimated value of the interest for the staking asset (at the end of staking).

So here ☝️ is the process of staking. Now you can also redeem your Coin before redemption period. But for that you have to pay penalty 🛑. Means if you redeem your staked token or coin before completion of staking period, you've to suffer lose. For example :-

• My staking date - 21st March, 2022
• Accrue date - 3 days
• My redemption date - 2nd April, 2022
• Cumulative interest - 5822.46

Now, if I redeem my 70 lac SHIB token today then I've to pay 5822.46 (Cumulative interest) to exchange as a penalty. Exchange will return 69,94,177.54 token in spot wallet after deducted interest (5822.46) of token which I accrue in 3 days from principal amount. Calculation will be like that :-

Redemption Amount = 

Purchase Principal - Interest Earned 

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If you have any doubt 🤔 then write in the comment box, I will definitely answer 👍. And if you like ❤️ my article then please give feedback 👇 also. Thanks 🙏.