Beneath losing money trading future contracts there are also pretty lucrative ways Binance offers for you to grow your wealth. One of them is ETH 2.0 staking. You might have already heard about it.
In order to transform Ethereum from a proof-of-work net to a proof-of-stake one holders can stake their ETH to get rewards. These rewards depend on the total amount of ETH staked - right now they are about 6.5% p.a. (read more on ETH 2.0 and staking here: https://ethereum.org/en/eth2/staking/).
Beneath this cool opportunity to make your ETH work for you the whole staking has a major downside (in my eyes): you can’t unstake your ETH until ETH 2.0 is enrolled (which might happen in about 2 years).
So far this might not be new to you, but I discovered a cool and easy opportunity to start staking with about 110% of your current holdings. But were does these 10% come from?
As on many other exchanges you can stake your ETH via Binance. You just have to navigate to earn and stake your ETH there BUT: you shouldn’t!
To understand why we have to look at how Binance manages ETH 2.0 staking: after you stake your ETH you get tokenised BETH in a 1:1 ratio for it. Your staking rewards are then calculated based on your BETH position in your spot wallet and you can easily trade or swap your BETH. And that’s exactly the point - you can trade it and you should!
Because other traders want to get ETH for their BETH they offer it on Binance’s BETH/ETH spot market and due to the current spread of FUD they desperately want to get their ETH back. Also if they only get 0.9 ETH for 1 BETH. And this is great! Especially for you wanting to stake your ETH. Instead of staking it via Binance earn you should definitely trade your ETH on this spot market for BETH to get an extra 10%.
You could also consider trading it back later when markets normalised again, but for now let’s just make your ETH work for you.
You haven’t got a Binance account yet? Get one for free!
Want to earn some free BTC to start your crypto journey? Have a look at my last article.
Have a good trip through the big (bad?) crypto world,
Carla XOXO
PS: As always: I’m not a financial advisor. DO YOUR OWN RESEARCH before investing your money and never invest money you cannot afford losing!