Binance is one of the top Crypto Exchanges globally, and its native token, Binance coin (BNB), is taking the crypto market by storm. The BNB project is one of the many crypto projects that earn interest for their investors. Instead of just HODLing your crypto assets and waiting for a suitable price to sell, you can earn interest during the HODL period.
Earning interest from digital currencies like Binance coin is considered to be less risky compared to trading in them. When you are trading crypto, you usually transact using highly volatile cryptocurrencies, and prices can plummet rapidly. Investing in the Binance coin interest project, on the other hand, helps mitigate any risks. You earn consistent revenue streams throughout the period your savings are locked in.
Binance interest savings accounts work similarly to traditional bank savings accounts — only BNB has a better rate of return. Earning interest in crypto is a relatively new concept, but it has attracted several investors because of the benefits. In this post, we look at how to make Binance earn interest for you.
How can Binance earn interest?
To first earn interest on BNB, you need to deposit BNB to your crypto savings account. There are several crypto brokers offering interest on crypto services but you must think carefully when choosing one. Consider their reputation, interest rates, security of your assets, and how conveniently you can access your coins. YouHodler is one of the top crypto exchange platforms that meet these considerations.
With YouHodler, you get the best BNB saving interest rate in the market, and at the same time, your Binance coin is kept safe. In addition, you can access your crypto any time you want, and in case the price of your crypto goes up during the holding period, you also get that benefit. As soon as you deposit BNB to your YouHodler savings account, your BNB immediately starts accumulating interest.
Ways in which Binance earn interest
You have two options when you want to invest in a BNB earn interest savings account. These are:
- The fixed option — this option is similar to that of the fixed savings account in banks. Here, you deposit your BNB coins for a specific period you cannot redeem the coins. The APY for this option is usually higher and compounded.
- The flexible option — unlike the fixed option where you cannot redeem your coins before maturity, this option allows you to cash out your coins at any time of your choosing. Interest earned is deposited weekly to your account, but the rate is usually lower than the fixed option.
Where does the interest earned come from?
You might ask yourself, where does the free BNB crypto you keep earning come from. This is a genuine concern because you need to understand how leading interest platforms like YouHodler work. When you deposit BNB to your account, the money is immediately lent to investors seeking crypto loans. The investors repay the loans at a higher rate, and part of the returns are shared as interest.
