Rising inflation does not only affect the economy. It also hurts our wallets. Why? Because it reduces the purchasing power of money. That is why we should learn to save and invest properly. Only by doing so, we can maintain the value of our assets. The easiest way to overcome inflation is to earn interest. However, the interest rate offered by banks is too low, so if you keep your money in a savings account, you actually lose it.
Stable investing requires systematic saving. It is also worth remembering that your financial freedom depends on your financial decisions. Therefore, savings and investments are significant, even if you operate with small sums of money. After all, as they say, a penny to a penny and you will be fine.
If not in the bank, where to earn interest on your savings? With help come cryptocurrencies and the world of decentralized finance. One of the best options for saving in this way is to use the largest cryptocurrency exchange globally – Binance, and more specifically, its Savings product.
In today’s article, we will explain exactly what Binance Savings is, what products it offers, and much more. By reading this article to the end, you should already know how to earn passive income from cryptocurrencies and overcome inflation.
Before we get started, though, you need to create an account on Binance if you don’t have one yet. You can do so by clicking on this link. Next, verify it by sending Binance the relevant documents. Ok, let’s start!
What is Binance Savings?
Binance Savings is a cryptocurrency savings account that allows you to easily earn passive income through your cryptocurrency deposits. So why hold digital assets idly when they can work for you?
Notably, the interest rates are very competitive, even compared to the best offers that traditional banks provide. You can also withdraw your earned funds at any time (more on that later).
Binance Savings previously operated under the name Binance Loans. However, the product was renamed in April 2020. At the same time, Elastic Deposits and Fixed Deposits have also changed their names to Elastic Savings and Locked Savings, respectively.
With the first product, you can withdraw funds whenever you want, and there is no cost for doing so. In the second one, you can achieve a higher interest rate, but your funds will remain blocked for a certain period. The undoubted advantage of Locked Savings is that they offer higher rewards. However, they also carry risks. If the market begins to fall, you will not be able to take any action to protect your position. Ultimately, after the lockout ends, you may find that you have made a loss despite holding more tokens.
How do Binance Savings work?
Saving with the Binance Savings program involves directly blocking coins on the Binance cryptocurrency exchange. The exchange then uses them in various DeFi protocols etc., to generate profit for users.
The entire Binance ecosystem that allows for passive income, or so-called Binance Earn, consists of many products. Among them are:
- Flexible Savings – Flexible Savings is a financial product that can be flexibly transferred and is very secure. You can take part in it and exit it at any time. Interest calculation for Flexible Savings starts from the day after you make your deposit. You can learn more about Flexible Savings from the Binance article at this link.
- Locked Savings – Locked Savings offer higher returns than Flexible Savings. However, in this model, your funds are blocked for a specific time (from 7 to 90 days), so you can’t do anything with them before the period expires. This type of investment is best suited for die-hard HODLers. You should use this product if you are looking at your digital assets in the long term and have no intention of selling them anytime soon. Locked Savings admittedly allows you to move coins into Flexible Savings before the lock-in period expires. However, if you do so, you will lose the interest you have earned. You can learn more about Locked Savings from the Binance article at this link.
- Auto-Invest – Binance’s Auto-Invest allows you to make automatic purchases of cryptocurrencies every specified time for a specified amount. This method is called Dollar-Cost-Averaging (DCA) and works excellent with Flexible Savings. You just need to connect your bank card once, and the rest will work automatically. Binance will do the shopping for you first and then move the funds to a place that will generate passive income for you. If you are interested in Binance Automatic Investments, you can find more details on the exchange’s official website.
- BNB Vault – BNB Vault is a product that allows one-click earning for Binance Coin holders. Generally, it is a BNB profit aggregator that combines Flexible Savings, BNB DeFi Staking, and Launchpool, earning the highest possible APY of up to 20%.
Why Binance Savings and not a traditional bank?
The Binance Savings product has many advantages over traditional banks. These include:
- High limits. You can deposit up to millions of dollars in Flexible Savings for some cryptocurrencies.
- Free deposits, withdrawals, and interest redemption
- Intuitive user experience
- Binance is the largest cryptocurrency exchange in the world with the highest liquidity. This means that you will have no problem realizing profits and you will not expose yourself to any risk
- The product is suitable for everyone thanks to two types of savings products
- Automatic transfer from your spot wallet to your Flexible Savings account
- Supports a vast number of assets (over 170)
- Binance is constantly creating new savings products
- Immediate redemption of rewards earned
- Higher interest rates than traditional banks allow you to hedge against inflation
What are the best offers at Binance Savings right now?
Flexible and Locked Savings offer very high-interest rates, which are definitely among the most attractive in the market. Within Locked Savings, the highest returns can be achieved on the following offers:
- AXS: 70% / 15 days
- DREP: 35% / 30 days
- CAKE: 50% / 15 days
- DOCK: 25% / 15 days
- BUSD / USDT: 9% / 60 days
- YASMY: 35% / 60 days
When it comes to Flexible Savings, you will earn the most right now with tokens:
- AXS: 20%
- CAKE: 12%
- WAVES: 10%
- BUSD: 10%
- APE: 10%
- MATIC: 6%
- LUNA: 6%
However, this is not all. Binance, to encourage users to take advantage of its products, regularly makes various promotions. Currently, there is a promotion called “Earn Wednesday”. Every Wednesday of the week, Binance prepares special Savings offers with high APY. It works on a first-come, first-served basis, so stay tuned. Sign up on Binance today and beat inflation by enjoying passive income from your cryptocurrencies.