Cryptocurrencies have provided investors with numerous opportunities to help grow their investment holdings. You can benefit from cryptocurrencies by crypto trading, crypto investment, or crypto-to-crypto exchange where you exchange one digital currency for another which shows greater promise of a gain in value. The fact that digital currencies are decentralized makes them an even better investment option.
If you are not well-versed in crypto trading, you can use a simpler way to grow your crypto portfolio. Unfortunately, the annual percentage rate of return on savings accounts held with traditional banks has been diminishing over recent years, and they are no longer a worthwhile investment option. This is where Binance interest earning comes in.
Binance Earn is a program where you earn interest when you deposit Binance coins (BNB) to your crypto savings account. A Binance coin is a token created by the Binance crypto exchange, which has grown a lot in popularity in the recent past because of its great prospects in terms of return on investment. In this article, we discuss in detail how Binance earns interest.
What exactly is Binance Earn interest?
Unlike in crypto trading, where you must know the ins and outs of the crypto trading market, Binance interest is entirely different and even much simpler. This is a crypto-saving program where you can grow your savings without putting in much effort. All you have to do is deposit BNB to your savings account and let the coins do the magic for you.
When you deposit BNB to your account, you can earn a BNB interest rate of up to 3% per year with compound interest. This is much better than the interest you can earn from your savings at the local bank, which nowadays can be as low as 0.05% p. a. So just deposit Binance Coin on YouHodler, and you could be earning interest that you can withdraw either weekly or any other period convenient to you.
How Binance Earn interest works
Crypto savings is a wise investment idea considering that you can earn interest on crypto Binance or other digital assets. What makes this idea even better is that external factors such as inflation do not affect the value of your BNB holdings. Your BNB deposit will start earning you Binance cumulative interest of 3% per annum when you deposit it in your YouHodler wallet.
The interest earned from your BNB deposit is generated from funds lent to borrowers. The moment you deposit BNB to your account, the funds are then lent to borrowers who will, in turn, pay a higher Binance interest rate on their loans; thus, funding the interest that you get. So, you get your interest, and the remainder goes to the company managing the lending operations.
Is your Binance Earn interest crypto savings account safe?
Before any investor thinks of putting up their funds into any form of investment, the security of the funds and other potential risks involved should be carefully looked at. In addition, opening a crypto savings account is done online, which can leave you wondering whether your data and funds are safe. Fortunately, Binance and other reputable third parties such as YouHodler prioritize the security of investor funds, that’s why they are some of the busiest exchanges.
