How to do Staking on Binance Platform?
Staking on Binance refers to holding your Coins or Tokens in a crypto wallet to support the operation of that blockchain. Every blockchain requires validation of transactions for its successful operations. In Bitcoin, this validation is done through the mining or Proof-of-Work (POW) mechanism. Mining consumes a lot of electricity which is not environmentally friendly; hence another mechanism known as Proof-of-Stake (POS) was introduced.
In the Proof-of-stake mechanism, every token has a right to vote and value. This value and right to vote can be passed and stored in authorized wallets. These nodes take part in voting and help in the validation of block. Block rewards are then paid to these nodes which they further distribute to their loyal members who stored their tokens with them.
Easiest way to earn by Staking your tokens
Binance has made staking very simple for its client, simply hold your desired tokens on your Binance wallet and you will be earning rewards for your holdings. Binance is currently supporting multiple tokens such as ONE, NEO, FET, ERD, TRX, ALGO, STRAT, QTUM, KMD, XLM, VET, ONT. Binance will keep on adding other supported coins moving forward.
Learn about the consensus mechanism of validating blocks for the token you are interested in. Users do not have any limitation on trading or utilizing their tokens on Binance. Rewards are shared as per the total holding of a token which is calculated from daily balance snapshots. Rewards are distributed monthly which is calculated as per the daily balance snapshots for the month.
Ve Chain example of staking on Binance
Let’s consider you wish to earn rewards by staking on Binance. Go to the Binance website and open an account. You can now transfer your cryptocurrency from some other wallet or buy it from a credit card. Buy Vechain tokens for staking. Binance will now take snapshots of your Vechain balance daily. Binance does not charge any staking fee nor you need to set it up. Vechain blockchain offers its rewards in the form of VeThor tokens. You will now be receiving Vethor reward at the end of the month according to your daily Vechain balances. This is how simple the World’s largest cryptocurrency exchange has made it to stake tokens.
Benefits of staking on Binance
- Binance is not charging any fee
- Staking on Binance is as simple as storing your tokens in wallet
- Binance supports multiple tokens
- No minimum amount required
- No need to set up any nodes
- Great support from Binance team
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