The finance sector has received a whole new level of positive change with innovations like binance flexible savings since the day cryptocurrency was introduced for use.
This has made it possible for crypto users to complete cross border transactions in a matter of seconds with fees as low as $0.00001.
As if that was not enough, cryptocurrency also brought out a way in which people can generate passive income while they HODL their crypto assets.
From relieving users from the burden of fiat transaction delays and extreme charges to providing better earning methods like binance flexible savings.
Just like how you can make passive income from crypto staking, you can also make more from your crypto asset when you use binance flexible savings too.
In one of our tutorials, we comprehensively discussed about how to stake cardano or ADA on Binance.
If you are yet to read it, do yourself good by going through it.
The tutorial will help you maximize your profits from cryptocurrency.
In this tutorial, you will learn about how to earn with flexible savings on binance.
We will be discussing about the following in details by simplifying this guide with steps below;
- Step 1: Have a Verified Account With Binance
- Step 2: Load Your Spot Wallet
- Step 3: Enter Binance Finance Section
- Step 4: Select Savings on Binance Finance Section
- Step 5: Select Crypto Coin For Flexible Savings
- Step 6: Input Amount Of 1inch For Binance Flexible Savings
- Step 7: Agree To Binance Terms And Confirm Purchase
What Is Binance Flexible Savings
Binance flexible savings is an innovative way of earning passive income from cryptocurrency in binance.
Some rewards are paid when you HODL your crypto assets in the binance flexible savings.
It is flexible enough to allow binance users who save their crypto to early redeem it without any fee.
Apart from early redeeming without a fee, the time it takes for your crypto assets to reflect in your spot wallet account is very fast.
Unlike locked staking where you have to lose all your staked rewards when you redeem early, binance flexible savings is different.
With binance flexible savings, you still keep your savings rewards even when you early redeem your crypto assets.
How Does Binance Flexible Savings Work
How flexible savings on binance works is not too different from the way binance locked staking works.
In one of our guides, we taught on how you can earn staking rewards when you use cardano staking on binance.
The way binance flexible savings work is not too different.
Flexible savings is an innovative way of encouraging cryptocurrency asset owners to HODL their crypto coins on binance.
This adds more liquidity in the ecosystem of the cryptocurrency that they HODL.
This also adds more liquidity to the crypto asset thereby boosting its value.
For adding to the liquidity of that cryptocurrency in binance exchange, you get rewarded with some crypto in the cryptocurrency you used flexible savings for.
Requirements For Earning From Flexible Savings On Binance
Before you can earn passive income by using the binance flexible savings, there are some requirements you must fulfill.
These requirements are very important for you to stand a chance of earning passive income from binance flexible savings.
Some of the requirements are;
1) Verify Your Binance Account
One of the most important requirement to meet before you can use binance for any transaction is that you must be verified.
So this is a very important requirement to meet.
This will make using binance flexible savings successful.
2) Be Free From Binance Ban
Binance places a ban on accounts that are suspected to be carrying out illegal activities on binance.
When your account is placed on ban, you cannot use the binance flexible savings for passive income.
In case you have been served a ban from binance for an inappropriate activity, contact binance support and make sure it is rectified.
When your account is free from ban, make sure you transact according to the rules and regulations on binance.
3) Have Funds In Your Spot Wallet
Even if you fulfill all other requirements and fail in this, your flexible savings on binance will not be successful.
This is because you do not have funds in your spot wallet.
The funds in the spot wallet is what will be used for the flexible savings.
Make sure that the funds in your spot wallet is equal to or more than the minimum number of crypto coin required for the binance flexible savings.
For example if the minimum quantity allowed is 0.1ETH, you must use 0.1ETH and above for your binance flexible savings to be successful.
If not, you will be shown an error of not having up to the minimum amount needed.
How To Use Binance Flexible Savings
The steps below will give you a complete guide on binance flexible savings.
Step 1: Have a Verified Account With Binance
The first step to take in using binance flexible savings is by having a verified account.
If you are reading this guide and you do not have an account with binance, it is easy and free to have one.
When you use the link above to sign up for a binance account, your account will have a low trading fees.
If you already have an account on binance but is not verified, make sure you verify it so that you can use binance flexible savings.
It does not take long to verify a binance account.
But you must make sure that the documents you upload have good clarity and are up to date.
If you have a verified binance account, proceed to the next step.
STEP 2: Load Your Spot Wallet
Understand that the account in which funds will be used for binance flexible savings is the spot wallet.
Some people usually make the mistake of leaving their cryptocurrency in other binance wallet and try to use the flexible savings on binance.
When you leave your funds in other wallets different from binance spot wallet, your binance flexible savings will not be successful.
To make sure that you do not encounter this, make sure that the crypto funds that you want to use is in your spot wallet.
There are a whole lot of ways in which you can load your spot wallet.
Some of the ways are;
- Load Spot Wallet From An External Wallet
one of the ways you can load your spot wallet for binance flexible savings is by sending money from external wallet.
Some external wallets you can use to send funds to your spot wallet are other crypto exchanges, trust wallet or buying from exchangers.
- Load Spot Wallet From Other Binance Wallets
You can also send funds from other binance wallets into your spot wallet.
Some of the binance wallets you can send funds from include futures wallet or you send from the margin wallet.
To make this possible, use the transfer option on the wallet section to make the transfer between binance wallets.
Select the wallet you want to transfer from and the wallet you want to transfer to and also input the amount.
The funds will arrive at the destination wallet instantly.
- Use The Trading Market To Buy Crypto
You can use the trading market to buy the cryptocurrency that you want to use for binance flexible savings.
This is used if you do not have the crypto you want to use in binance flexible savings.
You can easily trade other cryptocurrency you have for the crypto that you want to use in the flexible savings on binance.
You can do this by choosing a trading pair and then perform the trade.
- Use Binance Convert To Load Spot Wallet
If the buying and selling of cryptocurrencies by using the trading market sounds complex to you, you can use the binance convert function.
Binance convert is a way of swapping a crypto asset for another crypto asset without using the trading market.
It is very easy and fast.
When you have successfully loaded your spot wallet, you can proceed to the next step.
Step 3: Enter Binance Earn Section
After you have successfully loaded your spot wallet with the crypto you want to use for binance flexible savings, head over to the earn section of binance.
To get here, click on the more option on the mobile app first.
After that, you scroll to the binance earn section and click on the savings.
If you are using binance mobile app, you will see savings on the dashboard.
You can also access it in the finance section of binance.
Step 4: Select Savings on Binance Earn Section
Now that you have successfully entered the binance earn section, you will see a lot of options to choose from.
Such options include staking, savings, etc.
Our focus is on the flexible savings.
From here, click on the icon that is named savings to enter binance flexible savings.
Step 5: Select Crypto Coin For Flexible Savings
Now that you have successfully entered binance flexible savings, the next thing is to select the crypto coin that you want to use.
In our own case, we will be using 1inch because it will bring in good profit due to it high APY as compared to other coins on the flexible savings on binance.
Remember that the funds for any crypto coin that you choose for the binance flexible savings must be in your spot wallet.
Select a coin by clicking on the subscribe button.
Step 6: Input Amount Of 1inch For Binance Flexible Savings
Now that we have selected 1inch as the crypto coin we want to use, the next thing is to select the quantity to use.
Make sure that you have an amount up to or more than the minimum amount required in your spot wallet.
Input the amount of coins you want to use for the binance flexible savings.
If you want to use all the amount present in your spot wallet, simply click max.
Step 7: Agree To Binance Terms And Confirm Purchase
After you have inputed the amount of crypto coins you want to use, click on the binance agreement.
After you have agreed to binance terms and condition, click on confirm purchase.
If it is successful, you will receive the subscribed confirmation.
Advantages Or Benefits Of Binance Flexible Savings
There are a lot of advantages and benefits that you enjoy when you use binance flexible savings. They are;
1) Means Of Earning Passive Income
Being able to earn passive income from your cryptocurrency is a thing of excess joy to a lot of crypto users.
This happiness is more felt by new users of cryptocurrency.
This is because they can start earning profits while learning other things like cryptocurrency trading.
with this, a lot of people are being encouraged to join in the use of cryptocurrency.
This is because binance flexible savings is a very less risky way of earning passive income.
2) Availability of Auto Resubscription
The auto subscribe option that exist flexible savings is a very great innovation.
You still earn passive income without returning daily to subscribe.
This is because when you enable the auto subscribe function on biance flexible savings, re-subscription of expired plan is automated.
So you can just leave your crypto in flexible savings and be sure that your earning will not stop on days you cannot login to your account.
3) Less Risky Way Of Earning Passive Income From Crypto
Comparing flexible savings in terms of risk to other ways of earning passive income will leave binance flexible savings at the winner spot.
Unlike trading where you lose the quantity of your crypto when the trade goes against you, crypto in your flexible savings loses no quantity.
Instead, the quantity still increases as the daily profits made keep adding up to make your crypto quantity larger.
Limitations of Binance Flexible Savings
1) Not Available For All Crypto Coins
One of the sad news about flexible savings for crypto is that it is limited to some coins.
This means that if you do not have the crypto supported and listed in the binance flexible savings pool, you will not be able to participate.
This limitation has really taken some serious profits from some crypto users.
This is due to their inability to participate in the flexible savings with the cryptocurrency that they have which are not listed on the flexible savings pool.
2) Interest Rate Is Low
When you compare the interest you can make from other methods of earning money from crypto, you discover that flexible savings pay very little.
This low interest rate often a times make people to choose other less risky options like cryptocurrency staking.
How To Earn More Profit From Binance Flexible Savings
When you are paid your daily profits for using binance flexible savings, do not just allow the money to just sit in your spot wallet.
Put it to work and earn more passive income.
Some of the ways you can achieve this are;
1) Use Binance Flexible Savings Auto-Subscribe
Using binance auto subscribe function will make your profits from binance flexible savings higher.
This is because your profits will be reused to add up to your capital.
This will increase your capital value as compared to your initial starting capital.
This also increases your profits as the capital used keeps increasing as the profit keeps being added to flexible savings capital.
2) Trade On Binance Futures
If you do not want to use the re-subscribe function to add more liquidity to your binance flexible savings, you can trade the profits.
The accumulated profits can be used in placing a trade in the futures market to bring in more profits.
This is more risky than the flexible savings auto-subscribe but it is more profitable.
How Binance Flexible Savings Profit Is Generated
Profits paid to users who save their crypto asset is not generated the same way as staking rewards is generated from staking crypto.
In the case of binance flexible savings, the profit which is paid to users who saved their coins are generated from margin trade section2.
In the margin market, people borrow coins to trade and pay interest for the period that they borrowed the coins.
The coins that are borrowed are coins from the flexible savings on binance.
When they are charged a fee, it becomes a profit for users who saved their crypto asset with binance flexible savings.
At the end of the day, the total profit made from margin fees is distributed to all users who saved their crypto assets with binance flexible savings.
Binance Flexible Savings Profit Calculator
The profit that is paid to users who save their crypto assets with binance flexible savings is not stable all the time.
This is because of how the profit is generated.
The profit is generated from binance margin fees.
When people borrow crypto to trade on the margin market, they pay a fee and this fee is the profit that is paid to users of binance flexible savings.
At the end of the day, the accumulated profit is shared to all users who activated binance flexible savings.
The more people borrow on the margin market, the more users of binance flexible savings make more profit.
To determine how much each user gets as profit, the total profit is divided by the number of active subscribers of binance flexible savings.
Flexible savings profit = distributable income/total users who subscribed on that day
The profit is always shared on a daily basis.
The profit will be sent to the spot wallet of users who subscribed to binance flexible savings on that day.
Binance Flexible Savings Minimum Amount
To be able to participate in the binance flexible savings, there is a minimum amount of crypto assets you should subscribe.
This amount is not the same in all crypto subscribed.
Some are high and some are low.
If you do not have at least the minimum amount, you will not be able to subscribe to the binance flexible savings.
You will get an error as shown in the image below.
This shows that for you to subscribe to the ethereum binance flexible package, you must use at least 0.01ETH
To be successful in it, you have to buy ethereum of at least 0.01ETH and then try again.
Is Binance Flexible Savings Risk Free
Binance flexible savings is risk free when it comes to maintaining the quantity size of your crypto coin.
Unlike crypto trading where your crypto quantity reduces when a trade is against you, such risk does not occur in flexible savings.
Instead, the quantity of your crypto keeps increasing in the bearish and bullish seasons.
This is because the daily profits keeps adding up thereby increasing the quantity of your crypto.
How Do I Withdraw From Binance Flexible Savings
You can easily withdraw from binance flexible savings by using the redeem option to withdraw your crypto.
In order to withdraw or redeem your crypto, you can choose to withdraw part of your crypto or withdraw all.