Staking is one kind of crypto investment, which you can earn small amount of interest from the token you hold. It is called as effortless crypto investment because you don't need to take a risk for possible lossing your investment because you only need days for you to earn profit. There are two Kinds of Staking in Binance, the Locked Staking and DeFi Staking. For todays vlog, we will tackled the difference of this two.

Locked Staking

• What is Locked Staking?

Locked Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. For more on staking, please refer to Binance Academy. We will reduce the cryptocurrency amounts which you're holding in your spot wallet.

Source; https://www.binance.com/en/pos

The good thing of this "Locked Staking" is long time staking and there are many choices of how long you want to stake your tokens. There 10 days, 30 days, 60 days and 90 days. The long staking you stake the lower the Annualized Interest Rate you will earn.

The difference in Binance Staking to SmartBCH staking is in Binance there are only limited staking. Just like the underlined word above. The 10 days staking is already sold out and by the way this is the highest Interest rate in the Binance right now, sadly I didn't avail to this because it took only hours and then it marked as sold out. In Binance staking there is a required amount of tokens that you need to comply before you stake your tokens.

The disadvantage of Locked Staking is you cannot sell the token any time because you need to wait until the staking is done. If you will forcedly end the locked Staking even though it is not the right time to Redeem your staking. You will no longer earn the profit that your staking earned in the past few days or week. That's why you need to wait until the staking is done.

DeFi Staking

• What is DeFi Staking in Binance?

Binance DeFi Staking launches a new high-yield activity. Stake your DYDX and AAVE starting from 2022-01-21 12:00 PM (UTC) to earn up to 41.89% APY. DeFi Staking Format: First-come, first-served basis. Reward Calculation Period: 00:00 (UTC) on the day after DeFi staking is confirmed till redemption.

Source; https://www.binance.com/en/support/announcement/e82f626b0beb4f289f8b35a12fe2a0b4

The good thing of DeFi Staking in Binance is you can redeem the profit earned in staking and the token you staked in Binance anytime you want. But DeFi Staking have low Annual Interest Rate, the fact that it is not limited because you can stake any amount and Redeem anytime. DeFi Staking have only limited locked Staking but most of all it has flexible staking. There are only limited tokens that is available in DeFi Staking.

Conclusion

To conclude this article, Staking in Binance is pretty good but I think the SmartBCH staking is better than Binance staking. The fact that SmartBCH staking have Higher Annual Interest Rate and they have unlimited staking. The good thing Binance is easy to use and convenient, while the SmartBCH staking is you need to in their website for staking and checking tokens.

I am still searching on how to start staking in SmartBCH and I am preparing myself for the risk that crypto investment have. There are things that we need to be prepared and that is learning first how that thing is functioning and accepting what will be the result.

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