One of the ways of earning passive income with cryptocurrency in which a lot of crypto users have gradually developed phobia for has to do with trading cryptocurrency to earn passive income on crypto exchanges.
This has led to the development of other methods of earning profit from crypto in a less risky way.
Staking Cardano or ADA is one of the best methods of making profit with cryptocurrency with a very low percentage of risk as compared to crypto trading.
With crypto coins like Cardano, you can stake ADA on binance and still earn passive income without losing the quantity of your crypto.
Earning passive income from crypto with the use of crypto trading method comes with a lot of risk due to how volatile cryptocurrency is.
This fear is not just evident in the life of new crypto traders but is also very dominant in the life of experienced traders.
Before the introduction of cryptocurrency staking, lots and lots of crypto users due to the fear of crypto trades going against them were just crypto investors who only HODL crypto assets.
This method of just keeping the crypto assets without trading them generated little to no profit as compared to the profit that crypto traders were raking in.
This has been brought to an end as crypto investors who HODL crypto assets can now rake in consistent daily profits by just keeping their crypto assets in an exchange without trading them.
With crypto staking, you can make consistent passive income when you stake Cardano on binance or any other crypto exchange that supports ADA proof of stake.
We are going to have a detailed lesson on how to stake ADA crypto on binance and earn passive income.
In the course of this lesson, we will look at;
- What Is Cardano Coin
- What Is Cryptocurrency Staking
- Is Cardano A Good Coin To Stake On Binance
- Type Of Staking For Cardano On Binance
- How To Stake Cardano On Binance And Earn Passive Income
- Advantage Of Staking ADA On Binance
- How To Bypass Limits On ADA Binance Staking Pool
- How To Check Your Locked ADA Staking Records On Binance
- Definition of terms in Binance Crypto Staking
- What Is Cardano or ADA Crypto Coin
- Brief explanation of Cryptocurrency Staking
- Is Cardano (ADA) a Good Coin to Stake on Binance
- Requirements for Staking Cardano or ADA crypto on Binance
- Types of Staking for Cardano on Binance
- How Locked Staking of ADA on Binance Works
- How to Stake Cardano on Binance and Earn Passive Income
- How To Check Your Locked ADA Staking Records On Binance
- Benefits Of Checking Your Locked ADA Staking Records On Binance
- Advantages of Locked Staking of Cardano on Binance
- Limitations of Staking ADA on Binance
Definition of terms in Binance Crypto Staking
- Estimated Annual Yield
The estimated annual yield in a binance crypto staking simply means the interest rate that you will be paid for staking a crypto for the period of 1 year in a 12 calendar year.
This value is subject to changes from binance and is not constant or fixed.
It can increase or decrease thereby changing the daily stake rewards that you receive when you stake ADA on binance.
To stake Cardano on binance, the estimated annual yield is 8.38% for the 90 days locked staking plan.
- Total Amount
This is the total amount of Cardano crypto coins that you have staked within the staking period you have chosen.
- Stake Date
The stake date is the date in which you performed the ADA crypto staking on binance.
- Locked Period
This is the time frame that you have locked your staked ADA crypto asset for it to yield stake rewards.
For the Cardano that we are staking, our locked period is 60 days.
- Interest End Date
This is the last day that you will receive stake rewards for the Cardano crypto that you stake on binance.
- Accrue Date
This is the total number of days that you have consistently received staked rewards since the day you started staking your Cardano crypto asset for a particular locked stake period.
- Cumulative Interest
This is the total number of staked rewards in ADA that you have received since the day you started staking your crypto asset on binance for that particular locked stake period.
- Estimated Next Distribution Amount
This is the estimated stake reward that you are going to be paid the next day.
- Interest Date
This is the date that you are going to be paid your next locked staking reward.
- Interest Period
This is the time interval in which a locked stake reward is paid which is usually 1 day in the case of binance locked crypto staking.
- Redemption Date
Redemption period is the date in which your Cardano crypto asset that is held in the locked staking will be returned to your spot wallet.
What Is Cardano or ADA Crypto Coin
Cardano is one of the best crypto assets that has been released since crypto came into use.
Due to the high level of energy usage and complexity that comes with the use of proof of work consensus mechanism, ADA was developed to ease this burden.
As far back as 2015, the development stage of Cardano to use proof of stake had started and was fully launched in 2017.
The launch of Cardano was made possible with the support of Charles Hoskinson who is the co-founder of Cardano
Cardano has a lot of great future prospects as it can be used in the deployment of smart contracts just like ethereum.
The development of Cardano is in stages and these stages are five in number. The stages are;
- Stage 1: Foundation stage or the Byron era
- Stage 2: Decentralization stage or the Shelley era
- Stage 3: Smart contracts stage or the Goguen era
- Stage 4: Scaling stage or the Basho era
- Stage 5: Governance stage or the Voltaire era
What is the Current Price of Cardano (ADA)
As at the moment, the current price of Cardano (ADA) crypto coin is pegged at $2.03
You can always have the updated and latest price of ADA
Brief explanation of Cryptocurrency Staking
Cryptocurrency staking is an energy efficient method of earning passive income in cryptocurrency which uses the Proof of Stake consensus mechanism in validating blockchain transactions.
Cardano makes use of the proof of stake consensus mechanism when you stake ADA on binance.
The stakers that stake their cryptocurrencies to help validate transactions on the blockchain are called validators and are rewarded for the validation task with stake rewards in the cryptocurrency that they stake every time they successfully validate a transaction on the blockchain.
Unlike the heavy resources used by the proof of work method of validating transactions on the blockchain, proof of stake uses very little resources in validating transactions on the blockchain.
With the use of Proof of Stake method of validating transactions on the blockchain, validators need not worry themselves with the use of sophisticated and energy consuming machines like the ASIC miners or high end GPU graphic cards to validate a transaction on the blockchain.
Using proof of stake reduces energy consumption as validators only need to stake their cryptocurrencies and earn stake rewards in return for the role as a validator on the blockchain.
A lot of cryptocurrencies like ethereum that were using the proof of work consensus mechanism are gradually migrating to proof of stake consensus mechanism to reduce energy consumption and Cardano is blessed to use the proof of stake consensus mechanism.
This has endeared a lot of crypto users to Cardano as they can participate in cryptocurrency staking with ADA on binance and earn stake rewards in return.
Is Cardano (ADA) a Good Coin to Stake on Binance
Cardano is a good coin to stake on binance as it has a good interest rate that will bring in a good ROI at the end of the staking period.
Requirements for Staking Cardano or ADA crypto on Binance
Before you can be qualified to stake Cardano on binance successfull, there are quite some requirements you must fulfill.
These requirements in most of the times are not hard but simple so as to keep you and binance crypto exchange optimally functional.
Some of the requirements for staking Cardano on binance are;
1) You Must Have a Binance Account
Before you can successful stake ADA on Binance exchange, you must first have an account with binance.
Having an account with binance exchange is not a big deal as you can sign up for a binance account for free in few minuites.
You can learn how to open a binance account or sign up for free.
2) Your Binance Account Must be Verified
After you have signed up for an account on binance, the next important step to take is to make sure that you verify your account.
Verifying your new or old binance account is very important as there are binance limits placed on all unverified accounts.
These limits will make the optimum use of your binance account highly restrictive and limited.
Making sure that you have verified your account on binance will raise these limits and add more functionality and security to your account.
3) You must at least have the Minimum Amount of Cardano required for Staking on Binance
Congratulations if you have successfully opened and also verified a binance account.
The next requirement to fulfill to be eligible to stake ADA on binance is having at least the minimum stake requirement.
Having a vivid knowledge about crypto spreads will help you when buying ADA for staking.
To be able to successfully join any staking pool on binance, there is a minimum amount of crypto asset that is required.
For the case of the Cardano staking pool on binance, the minimum amount required to join the ADA staking pool on binance is 1 ADA crypto coin.
If you do not have much crypto, you can purchase more with the spot trading or you use the binance convert to convert other crypto to ADA.
This amount is subject to change anytime so always make sure that you always check for the minimum stake amount to know if you are eligible to stake a crypto asset on binance.
Types of Staking for Cardano on Binance
The type of staking that is available to stake Cardano on binance is locked staking.
How Locked Staking of ADA on Binance Works
The locked staking method of staking ADA on binance has made the staking of Cardano more simplified and stress less in order to earn passive income on binance.
With the use of a locked staking on binance, a user can easily stake ADA for a long period of time and earn passive income daily without trading.
With staking being a proof of stake consensus, when you stake your ADA crypto on binance for a given period of time like 60 days you get rewarded with free Cardano crypto coins.
This simply means that you have offered your ADA crypto coins as a validator to verify transactions on the Cardano blockchain for a period of 60 days.
This does not go unrewarded as you will be paid block rewards that will be cumulatively paid to you on a daily basis for the staked period of 60 days.
The block rewards will be paid to your spot wallet on a daily basis until your staking period which is 60 days is over.
When your Cardano stake period is over, the amount of Cardano that you staked will be returned to your spot wallet account for you to stake ADA again if you so wish.
How to Stake Cardano on Binance and Earn Passive Income
The basic knowledge of crypto staking on binance has really been explained above to help in giving you a vivid understanding on how to stake ADA crypto on binance to earn passiive income.
In the following steps below, a vivid explanation with steps involved to successfully stake Cardano on binance.
The steps are;
Step 1: Sign in to your Binance Account
At this point in time, you should already have a binance account that has been successfully verified by binance.
Having an account that has been successfully verified will help you to successfully start the process of staking your Cardano crypto on binance.
Step 2: Click on more on your Binance app Dashboard
After you have successfully signed in to your binance account, you will find a button that is named More on the dashboard.
Click on the More button to take you to the next step.
Step 3: Click on Staking
At this point, you have reached the next step that will take you to the ADA binance staking pool.
Just click on the staking button and you will be taken to binance staking pool where you will find a lot of coins to stake.
Remember that our target coin for staking is ADA crypto.
If you do not find ADA binance staking pool on the top of the staking pool, keep scrolling down and you will eventually find the ADA staking pool on binance.
Step 4: Click on Stake Now to Join the ADA Staking Pool
If you have been able to see the ADA staking pool, congratulations as you have made it to one of the most important steps on how to stake Cardano crypto on binance and earn passive income.
You can even pop a bottle of champagne as you are very close to reaping consistent passive income on binance.
You have to pay attention to certain information required in the staking pool such as;
- Annualized Interest rate
Observe carefully that the annualized interest rate is not the same for all the staking duration.
For 30 days duration, the annualized interest rate is 5.09%
For the 60 days duration, the annualized interest rate is 7.79%
For the 90 days duration, the annualized interest rate is 8.38%
- Minimum Locked Amount
You have to know that all staking pools on binance have different minimum amount of crypto assets that can be staked.
On the ADA binance staking pool, the minimum amount of ADA that can be staked is 1 Cardano crypto coin.
This amount of minimum locked amount is subject to changes and can be reduced in future or increased as per the requirements of the staking pool.
So have in mind that before you can successfully proceed from this step that you must have a minimum of 1 ADA crypto coin or more than that before you can successfully stake.
Also make sure that the ADA coins are in your spot wallet account or you will be unsuccessful when you click stake now.
If your cardano is in any other wallet on the binance exchange, make sure that you move the quantity you want to use for the staking to your spot wallet before proceeding.
- Duration Of Stake
Another important option on the Cardano staking pool on binance is the duration of the stake.
This is how long you want to keep your ADA locked in the staking pool.
There are three set of stake duration here which are 30 days, 60 days and 90 days.
The stake duration affects the amount of interest that you can possibly earn,
The 30 days duration has an interest rate of 5.09%
The 60 days duration has an interest rate of 7.79%
The 90 days duration has an interest rate of 8.38%
You can choose how long you want to stake your Cardano on binance depending on you.
For this tutorial, we will be going going for the 60 days duration with an annualized interest rate of 7.79% since the 90 days locked duration is sold out.
At this point where you have carefully considered your options and have concluded on what option you will be using on the ADA binance staking pool.
Click on the Stake Now button under the ADA binance staking pool.
Step 5: Input The Amount Of ADA You Want To Stake
This is the step in which you will specify the amount of crypto asset that you want to stake on the ADA binance staking pool.
Make sure that the amount of ADA that you want to stake is already in your spot wallet as it is what will reflect as available balance for the stake.
For this guide on how to stake ADA on binance, the quantity of cardano that we will be staking will be 10 ADA.
At this point, a lot of the details on the staking pool will be shown. These informations include;
- Minimum Amount: On the Cardano staking pool, the minimum ADA stake amount is 1 ADA
- Maximum Amount: The maximum amount is 500,000 ADA
With this information about Cardano staking pool on binance, our limits of ADA staking is between 1 ADA to 500,000 ADA.
This simply means that we cannot stake below 1 ADA or above 500,000 ADA
Step 6: Confirm Purchase
After you have inserted the number of ADA that you want to stake on binance, a summary of the stake will be shown.
From here, tick the agreement to binance service terms and then click on confirm purchase to complete your Cardano stake.
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How To Bypass Limits On ADA Binance Staking Pool
Receiving stake rewards can be very exciting when you stake Cardano on binance.
This joy seems to be reduces when you have a very large amount of ADA crypto coins to stake.
This is due to the limits that exist in a particular staking duration in which the highest you can stake for the 60 days duration we just did while compiling this tutorial is 500,000 ADA.
This limit becomes a problem when you have more than 500,000 ADA to stake at once.
To bypass ADA staking pool limit on binance, you have to open a new staking plan on ADA binance staking pool after you have successfully finished the first one.
As you can see from our locked staking records, we have two active locked ADA staking plans that are running concurrently.
So anytime you are faced with a stake limit, open another staking plan till you exhaust the staking amount of crypto assets you want to stake.
How To Check Your Locked ADA Staking Records On Binance
So many people that stake their ADA on binance make the mistake of not always checking on their active Cardano stake on binance.
This is not good as you will be unaware of most of the information that should make your staking more profitable.
Every staking pool is always subject to changes in annualized interest rate and active staking opportunity for a particular stake duration.
Without visiting your earn wallet on binance, you cannot have these information.
You can check the records of your staking from your binance earn wallet.
To do this, follow the steps below;
- Step 1: Log In To Your Binance Account
Before you can check your locked ADA staking records on binance, you first have to log in to your verified binance account.
- Step 2: Click On Wallet On The Dashboard
After you have logged in to your binance account, click on wallet on your account dashboard.
- Step 3: Click On Earn
After you have access to your wallet on binance, click on earn.
There are a lot of wallets on binance ranging from spot wallet, futures wallet to earn wallet.
The records of our ADA staking on binance will be found on the earn wallet.
When you access the earn wallet, all the cryptocurrencies that you have staked on binance will show and you can access the details.
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Benefits Of Checking Your Locked ADA Staking Records On Binance
1) Ability to Check When Your Active Staking Period Will Expire
So many people that stake cardano on binance are mostly consistent stakere in the ADA binance staking pool.
To continue being active on the staking pool, they have to monitor the day in which their active ADA staking period will expire so that they can restake when their staked asset is returned to their spot wallet.
This information on when your cardano stake on binance will expire can only be seen through the data on the earn wallet on binance.
2) It Helps You See the Current Annualized Interest
When you stake Cardano on binance, the percentage that is paid as stake rewards can change anytime depending on the condition of the ADA staking pool on binance.
When any change is implemented, it will show on the records that you have about your staked ADA and this will be seen on your earn wallet on binance.
Advantages of Locked Staking of Cardano on Binance
1) Ability to Earn Passive Income in Binance Without Trading
One of the highest benefits of staking ADA on binance is that you are offered the opportunity to earn a passive income through stake rewards paid in ADA without stressing yourself with price action and other technical analysis data.
2) Consistent Passive Income Without Loss of ADA Quantity
The beautiful thing about staking ADA on binance is that your crypto asset keeps increasing progressively on a daily basis no matter how bad the crypto market gets.
In crypto trading, if you are on a long trade and the price of the crypto asset goes down, the quantity of your crypto asset that you traded will be reduced.
In the staking of ADA on binance, irrespective of the direction of the market, you will consistently be paid your daily stake reward.
This means that you keep making profit in quantity through stake rewards in the bull and in the bear session of the market without disturbing yourself which direction the market will follow.
3) Higher Interest Rate on Stake of ADA On Binance
When compared to the interest rate that is being offered on other exchanges for staking Cardano, binance has a better interest rate.
When you stake ADA on binance, the interest rate that you receive will be as high as 8.38% for the 90 days locked staking plan.
Bear in mind that this interest rate is subject to change and is an annual rate for staking ADA on binance.
4) Higher Limit as Compared to Other Exchanges
The limit that is placed on the stake of Cardano on binance is higher when you compare it to the limit that is placed by other exchanges.
When you stake ADA for up to 60 days on binance, the highest number of ADA that you can stake in an account is as high as 500,000 ADA crypto coins.
This gives you a great opportunity to make more passive income when you stake ADA on binance.
5) Binance is a Very Secure Crypto Exchange
One of the greatest tragedy that can befall a person who is into cryptocurrency is to wake up to an email that the crypto exchange you kept your crypto assets has been hacked.
This is why staking 1inch and other crypto assets is fruitful on binance.
I can boldly tell you from experience that it is a very sad experience as I have fallen victim to this on up to 4 crypto exchanges and I lost a lot of crypto assets.
In one of such cases, I lost 40,000+ dogecoins which has not been returned till today.
When you stake cardano on binance, you worry less about the safety of your crypto assets as binance has one of the safest crypto exchanges in the world to transact with crypto and is backed by a strong insurance for the crypto assets in its holding.
Limitations of Staking ADA on Binance
1) Long Duration Locked Staking Are Limited
One of the limits that users face when they want to stake Cardano on binance is that the long duration stake durations are not available all the time.
Due to the high annualized interest rate that is given to stake plans with long duration periods, there is always a high competition in available positions.
This makes the long duration plan on ADA staking pool on binance limited and inaccessible to users a lot of times.
When this happens, users are forced to choose lower duration plans so as to have an active Cardano stake on binance.
This is the same challenge we encountered while preparing this tutorial an that is why we had to use the 60 days locked staking plan because the 90 days duration was sold out.
2) Loss of All Accrued Stake Rewards when you Redeem Early
When you redeem your ADA locked staking on binance before the due date of the locked staking duration, all the stake rewards that you earned will be automatically returned back to the staking pool before your staked Cardano will be returned to your spot wallet.
Unlike the flexible savings in which you can make an instant redemption of your crypto asset anytime and still get to keep all the stake rewards you earned, this does not happen same when you use a locked staking.
If you redeem your locked staking earlier than the due date, you will lose all the stake rewards you earned.
In this tutorial on How To Stake Cardano or ADA Crypto On Binance For Passive Income, we have comprehensively taught step by step on how to stake ADA on binance.
When you apply these steps carefully as they have been shown on this guide, you will have no issue when you want to stake cardano on binance.
If you have a question or suggestion, let us know in the comment section.
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