Staking is a way to stake an amount of cryptocurrencies to help support the implementation of security for the blockchain to receive rewards. So what is Locked Staking Binance? How to be rewarded with Locked Staking Binance? After reading the article below, investors on Binance will know how to use this feature competently.
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What Is Locked Staking Binance?
If you’ve ever learned how Bitcoin works, everyone knows Proof of Work (PoW).
This is the mechanism by which miners solve complex algorithms to add new blocks to the blockchain. In return, they will receive a reward. However, Proof of Work (PoW) requires a lot of effort and cost.
Meanwhile, Proof of Stake is a less resource-intensive alternative that still produces and validates new blocks by staking. Participants in staking bet a lot of cryptocurrencies for a specific time, the number of blocked cryptocurrencies is randomly selected to generate a new block. At that time, participants in staking will receive rewards, similar to miners solving the blockchain algorithm.
So what is Locked Staking Binance? Locked Staking Binance is where participants lock some of their cryptocurrencies on Binance to bet and earn rewards. The higher the number of crypto deposits, the greater the chances of being selected and the higher the reward of the depositor.
Binance Staking Locked Calculator
How to calculate the reward when participating in Staking is one of the issues that many people are most interested in. However, there is no specific formula for this. Each blockchain network uses different ways to calculate premiums. Many factors go into determining the reward ratio, including the total number of coins wagered on the network, the wagering period and the coin used for staking… wagered at a fixed percentage. Participants can preview the profit rate directly on the window while staking. Especially when the market falls, staking participants are still guaranteed to receive enough interest. Therefore, this form is used by many investors during the downside period to optimize profits from the amount of cryptocurrency they own.
What is Locked Staking Binance Risk?
Binance is the largest trading platform by volume and comes with the best security in the cryptocurrency market. In addition, Binance has also selected the best projects for users. Therefore, when participating in Locked Staking Binance, there is no risk of losing the cryptocurrency used to deposit. But the staking time is usually 1-3 months, which is a long time. During this period, there may be sharp fluctuations in the market. The value of the asset will decrease significantly. This is the most significant risk that participants may face when doing Staking.
Way to Locked Staking on Binance
Step 1: Sign in to your Binance account. If you don’t have a Binance account, you can register by following the link below:
Step 2: Access the Locked Staking feature
- Click the Finance tab, select Binance Earn
- Scroll down to the locked Staking area, select Go to Staking
Step 3: Select a project to join In Staking
On the stake page, participants can see a list of all projects that allow staking and annual return (APY) corresponding to the required time and minimum amount. Click Bet Now.
Enter the required information: Amount of cryptocurrency you want to bet, check the terms box and click Confirm.
After confirmation, staking officially begins. Once the process is complete, the deposited cryptocurrency is automatically redeemed and returned to the participant’s Spot wallet.
Conclusion
Above is information to help readers understand what Locked Staking Binance is and instructions for staking. Staking is a simple form of passive gain on Binance.
