Cryptocurrencies offer various earning opportunities. Sharp price fluctuations cause many inexperienced traders to lose money. However, Binance is a platform that provides a variety of products that help investors grow their crypto assets on a daily basis. One of them is ETH 2.0 Staking. This article explains how to do it.
What is ETH 2.0 staking?
ETH 2.0 is an updated version of the scalability, security and network sustainability of Ethereum’s existing ETH 2.0 is scalability, security and updating network sustainability for the current Ethereum blockchain from Proof-of-Work to Proof-of-Stake.
Initially, all Ethereum transactions are secure by solving problems in the blockchain to complete the transaction. Whoever solves the equation first will be rewarded. This mechanism is called Proof-of-Work. The PoW mechanism is increasingly demanding, so mining is increasingly difficult.
Ethereum 2.0 uses a Proof of Stake (PoS) consensus mechanism with 3 phases: phase 0 will be implemented in 2020; Phase 1/1.5 will be implemented in 2021; Phase 2 is scheduled to launch in 2022. Proof of Stake (PoS) solves the problem of Proof-of-Work by making sure that the “validators” have staked a minimum of 32 ETH directly on the homepage of the Ethereum.org for two days of years to become a validator of transactions. In return, the “validators” will receive their reward. However, this requires a large amount of capital and carries some risks, such as extending the ETH block time to complete the ETH 2.0 update.
This feature overcomes the above disadvantages, making it easy for investors to perform Ethereum 2.0 staking. Investors can start at 0.1 ETH and Binance will bear all costs and other risks on-chain. Binance evenly distributes betting rewards to users.
How does ETH 2.0 Staking work on Binance?
When users are betting ETH 2.0 on Binance, Binance provides users with BETH (Binance Ethereum) tokens. This token is worth 1 ETH, which is equal to 1 BETH. Users need to keep BETH on the Spot Binance account and get daily APY (interest). At the end of Step 1, whatever your BALANCE on BETH is converted to ETH with a ratio of 1:1. Especially during staking, users can stop staking at any time.
The risk that users may face when staking is a price change. When ETH falls in price, investors can be eager to see the value of their investments suffer. However, short-term price fluctuations should not be a problem if the investment is long-term for many years. In addition, APY (annual rate of return) is not guaranteed. The more ETH is pointed, the more APY decreases.
How to bet ETH 2.0 on Binance?
Step 1: Sign in to your Binance account. If you do not have a Binance account, register using the link below:
Step 2: Access the ETH 2.0 Staking feature: Click on the Finance tab, select Binance Earn. Scroll down to the ETH 2.0 Staking area, choose Go to ETH 2.0 Staking.
Step 3: Run ETH 2.0 Staking: On the Staking page, click Stake Now, enter the amount of ETH you want to bet, read and accept the Accept the Terms of Service box, then select Confirm.
After completing the above steps, the BETH bonus is paid daily to the spot account. If a user bets ETH today, Staking is credited the next day and the reward is paid at T+1.
Above is some information about ETH 2.0 Staking on Binance. Til suo is the easiest and most flexible way to earn rewards.