For quite a long time I have dabbled around ways to make a quick buck in cryptocurrencies, or at least, some steady passive income.
You would think it is quite easy, in many ways it is. In this article, I will show you how I do it.
I prefer FIAT currency, meaning when I don’t have all my money invested in any digital asset – I hold it in a stable coin that has the same value as the US dollar.
That’s all good, but what if you can make interest in that stable coin? Well, now you can.
Disclaimer. This article is informational. It is not trading advice. Make your own decisions when trading or buying cryptocurrency.
As of writing, we are in a bull market and quite a few of my holdings have increased in value. I have sold some assets into stable coins like Tether, BUSD etc.
I mainly trade on Binance, I don’t really trade a lot but when I do, it is usually small stakes.
Of course, Binance has come a long way since 2017 and offers a lot of features, which I have more or less ignored until a couple of months back.
I was clicking through Binance Swap, Binance Earn, and a few other options and decided to try out the Earn option.
I put in a couple of 100 USDT and made a few dollars over a period of 20-30 days. Not much, I know. But it got me thinking, If I put that money in a bank, I would earn nothing…
Currently, I have around 1300 dollars in the stable coin BUSD, which is Binance’s own stable coin that replicates the value of the U.S dollar. Hence the name, BUSD.
I also have 3 Monero that I have put into Earn. The 7 days APY is 5.05% on BUSD and 1.33% on Monero. The formula is a bit complicated but here is a Reddit thread that explains it more in detail.
The question is, how much do I earn on 1300$ with an APY of 5.05%? Take look at the image below. If you ignore Monero, I am just about earning 0.20 USD per day.
Again, a small sum but over a year that is roughly around 70 USD. Free money, thank you very much. I will take that any day of the week.
So, if I had 10.000 USD lying around, I could transfer it to Binance Earn and make almost 700 USD in one year. That beats any bank on the planet.
Is it safe?
I know that Binance was hacked back in 2019 – and some criminals got away with 7000 Bitcoin. You can read the statement from Binance here, Full statement.
The good thing was that no users lost any money on the hack. Binance covered it all with their SAFU fund. Again, this builds more trust in the platform.
There will always be risks in cryptocurrency when it is more or less in its infancy. Even a stable coin could have its risks, read more about it in this article.
Through the years I have gotten more familiar with the cryptocurrency space as a whole. There are only a handful of exchanges that I trust. Binance is one of them.
Having used the platform for a while I am more confident about staking my money in Binance Earn. I have made some decent money in the bull market in cryptocurrency, a bear market will inevitably come.
When it does, I do not want to hold any coins that are going to drop 90%.
The solution is to transfer it to stable coins, and do nothing with it, or stake it and earn an APY of 5% or 6%.
I compare it to the money I have in my savings account in the bank during the past year. When looking at the bank statement I earn pennies in interest.
Being risk-averse I (obviously) have more money in the bank than in cryptocurrency, but then again, it is frustrating looking at almost zero percent interest.
What I like about the staking option on Binance is its simplicity. I have tried other platforms that include using Metamask (a wallet in your browser) – which means you have to be a bit more tech-savvy.
On Binance Earn, I just click the transfer button – and that’s it. I can withdraw it at any time as well since it is a flexible lock-up. Sounds interesting? Try it out here, Binance Earn.
Let me know if you have any questions – I’d be more than happy to help you out!