On Thursday September 26, 2019 Binance made a major announcement that went largely unnoticed and not covered by mainstream crypto media. Officially launched was Binance coins Staking platform.
What is Binance coin staking platform / program?
On the statement, Binance claims the coin staking platform or program will allow cryptocurrency holders of certain crypto coins to automatically and easily earn rewards by “depositing and holding coins” on the Binance exchange user’s wallet in order to “support the operations of a blockchain network.”
This is not Binance’s first venture into the newly and hot crypto coin staking method. They have been staking a number of cryptocurrency assets for a few weeks. It was not until a couple of days ago they unveiled the crypto staking platform, made it available to the public, and explained in full details how it works.
Changpeng Zhao (aka “CZ”), Binance’s co-founder and CEO tweetd:
Staking service @Binance. You literally don’t have to do anything. Your funds on Binance automatically participate. You can still trade as you normally would.
Keeping it simple!https://t.co/CR0Fqpde6d
— CZ Binance (@cz_binance) September 27, 2019
In the announcement, Binance claims that it is really effortless to earn free staking rewards with the Binance coin staking platform.
“Users will earn staking rewards without needing to set up any nodes, worry about minimum staking amounts, time lengths, or any other technical requirements.”
Binance also revealed that on October 1, 2019 they will release a staking calculation methodology. The method will work a little differently. Unlike the ones use by other crypto staking platforms such as stake.us, which take snapshots of users’ balance, Binance will support users’ cryptocurrency balance daily at 00:00 UTC.
Which cryptocurrency coins can users stake with Binance?
At the current moment, users are allowed to stake the following crypto coins & tokens with Binance staking platform:
Stellar Lumen (XLM), Stratis (STRAT), NEO, Ontology (ONT, Algorand (ALGO), Komodo (KMD), Qtum (QTUM), and lastly; Vechain (VET).
What set Binance crypto coins staking platform apart from competitors?
Below are a few features that makes Binance’s cryptocurrencies staking platform apart:
1. It’s 100% free – you don’t have to pay Binance a dime to stake.
2. No lock up period – you can withdraw, sell, or exchange your coins anytime you please and still receive your staking rewards.
3. Trade, sell, withdraw portions – users are allow to trade portion of staking coins while staking the rest.
Cryptocurrency coins staking is now ‘the thing.’ It’s becoming so popular that many exchanges are rushing to take a bite out of the apple. Coinbase, Binance’s #1 competitor started supporting staking for Tezos (XTZ) in March 29, 2019.
There are a few downsides to Coinbase’s staking platform. You have to be Custody user. That means you have to be an institutional investor and it’s not free.