Are you wondering how you could make money on Binance? I’m here to share with you guys a variety of ways how to make money on Binance. Just a caveat though before we begin, cryptocurrency trading and investing is definitely risky and I highly suggest that you consult a professional financial adviser or Do Your Own Research (DYOR) before you sign-up with any crypto exchanges. This article is not financial advice and I’m just sharing information about my personal journey in crypto investing and trading.
And also, bear in mind that information changes from time to time, and the info that you might see here might not be that updated by the time you see this article. So, again, always be sure to DYOR and check the crypto exchanges website for the most updated information.
Let’s start, shall we!
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Table of Contents
My Binance Experience
I’m basically new to the world of crypto and the first exchange that I’ve signed up with is Binance mainly because of its size and its popularity online. Recently, I also signed up with Kucoin to invest in crypto that is not yet on Binance and I also signed up with Crypto.com to get their Visa card.
I have been using Binance since February 2021 and so far, I have made some gains and losses along the way. As I continue to use the app, I learned a variety of ways to earn money on Binance.
If you don’t have an account yet with Binance, you can check my post on how to sign up and use Binance (basic guide only).
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How to Make Money on Binance
Make Money by Trading Crypto
Trading basically means buying and selling assets and in this case, cryptocurrencies. The basic idea is to buy crypto at a low price and to sell them when the price becomes higher, which to be honest is easier said than done since no one really knows where the price will go to.
You can make money by making short-term trades or by holding on to crypto for a longer period of time and selling them eventually 0nce it reaches your target selling price.
Personally, this is also the underlying fundamental of my online selling business – buy low, sell high, maybe that’s why the idea is not that foreign to me.
Again, before we continue, just a reminder to whoever is reading this – just like any other form of investment, only invest money that you can afford to lose and always DYOR to minimize the risk of losing your hard-earned money. I don’t want to sound preachy but I just want you to know that crypto investment is very risky due to its volatility.
Make Money by Saving Crypto
Binance has a savings option for a few select cryptocurrencies. Basically, it’s just like a bank wherein you’ll park your crypto on it to earn some interest. Interests vary per crypto.
Bear in mind though that when you put your crypto on your Binance ‘savings wallet’ they are still subject to the fluctuation of their market price unless, of course, they are stable coins such as USDT, USDC and BUSD. If you’re not familiar with stable coins, they’re basically crypto that is pegged to a fiat currency, which in this case, the US Dollar.
For savings, you have two options to choose from – Flexible and Locked.
Locked Savings means, your crypto will be locked for a certain period of time. As of the time of writing the options are 7, 14, 30, and 90 days. The interests vary depending on the time period.
For Flexible Savings, there are more crypto options to choose from. You can save ADA, VET, ONE, etc.
As of the time of writing, there are 56 cryptos that you can save in Binance Savings including the stable coins I mentioned above. Interests are smaller than the ‘Locked’ Savings but it’s definitely way higher than traditional banks LOL!
You can also take it out anytime if you need to trade your crypto or if you need to withdraw them. By the way, keep in mind that interest calculation starts on the second day.
Most of the crypto that I’m holding is parked here.
Earn Money by Staking Crypto
As per Binance, “Locked Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.”
What’s in it for you, basically, if you ‘stake’ your crypto on Binance you’ll be earning some interest on it and it will be locked for a period of time. As of the time of writing, the available lock-in periods are 15, 30, 60, and 90 days.
Even if it’s locked, you can still redeem it early but all the interest that you’ve earned will be forfeited so you’ll basically get the principal amount that you’ve staked. And also, it takes a couple of days before the staked crypto will be available in your Spot Wallet (Trading Wallet).
Personally, I also stake a lot of my crypto so I can earn from them. I only stake crypto that I’m planning to hold for a longer period of time.
Another option in staking is Defi Staking. Personally, I don’t use this product because it has a higher risk than the regular Locked Staking. But, if you want to know about it, you can check this guide by Binance. Be sure to watch the video and to read the FAQ section on the webpage.
Farm New Tokens on Binance Launchpool
Every now and then, Binance launches a new token via the Binance Launchpool and you can get the first dibs by storing your BNB, BUSD, and sometimes other cryptos to farm the new tokens.
Please take note though that they have computations that they follow when distributing the new tokens to Binance Launchpool participants.
I have participated in the recent Binance Launchpools and I really didn’t earn that much because almost all of them were over-subscribed.
Earn BNB and Launchpool Rewards by Using BNB Vault
BNB Vault is where you could stake your BNB token to earn BNB and Launchpool rewards. I have also used this in the past but I already sold my BNB LOL!
Get Airdrops by Storing Your Crypto
Airdrops basically mean receiving tokens just by holding another crypto. The mechanics differ depending on the crypto so be sure to keep yourself updated. Some of the cryptos that give airdrops on Binance includes:
- VET (Earn VTHO)
- NEO (Earn GAS)
So basically, when you put VET and/or NEO on your Savings Account, you will earn interests and also VTHO and/or GAS.
You can read the full details on how this works on this webpage.
I’m personally using this product since I’m a VET holder. I don’t have NEO though for now. I still have to read some stuff about it.
Photo by Harrison Kugler on Unsplash
Earn Money with Binance Liquidity Swap
Binance Liquidity Swap is an automated market maker pool product just like Uniswap, Pancake Swap, etc. Personally, I don’t use this product but I did use Pancake Swap in the past.
If you are interested in learning more about the pros and cons of this product, check out this Binance Liquidity swap webpage.
Earn Money by Using Binance Card
As of the time of writing, you can get up to 8% cashback on all eligible purchases made with your Binance Visa Card. Please bear in mind that this is subject to change so always be sure to check Binance for updates.
Unfortunately, I can’t say much about the Binance Card since I don’t have one because it’s only available to the following countries:
Aruba, Austria, Belgium, Bulgaria, Croatia, Curaçao, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, French Guiana, Germany, Gibraltar, Greece, Guadeloupe, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Martinique, Mayotte, Netherlands, Norway, Poland, Portugal, Reunion, Romania, Saint-Martin, Sint Maarten, Slovakia, Slovenia, Spain, Sweden.
I will write a separate post once the Binance Card becomes available in my country. If you’re from one of those countries, be sure to check the FAQs to learn more about the card.
Make Money by Selling on P2P Market
There are certain countries that can only buy their cryptos on Binance via the integrated P2P (Peer to Peer) market and you can also earn money from this.
Basically, it’s like being a small FOREX Shop. For example, if I need to deposit USDT on Binance, I usually go to Binance P2P to buy from other Binance users in my country so I can pay for my purchase in the local currency using the local payment method.
You can read more about it here.
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Final Thoughts
I don’t use all of the services mentioned above, however, I do use the products/services that I feel have low risks for me. So before you use any of the above-mentioned products/services, kindly do your DYOR and assess if the associated risks are something that you can manage.
Also, before you sign up with Binance, Kucoin, Crypto.com, or any other crypto exchanges, be aware that there are so many scams going on online targeting crypto holders and you have to be aware of them so you can keep your crypto safe. I wrote a separate post on how to keep your crypto safe, be sure to check it out if you have some time.
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