Staking your coins is one of the most important investments you can make in cryptocurrency. But what does staking actually mean? Is it just locking crypto into a website or contract? A stake of BNB actually collects fees for validating transactions. Now that Binance Smart Chain is doing 8 million transactions per day it’s more profitable than ever to stake.
Staking has three major benefits:
You don't need specialized mining rigs or machinery to stake for income. Every few seconds, Binance Smart Chain processes transactions. The validators of the chain take turns validating transactions and collecting transaction fees. The validators of Binance Smart Chain are the top 21 validator candidates with the most BNB supporting them. You get paid to vote for the validators, who perform the validation with high end equipment.
The fees they collect are shared with their voters in the form of commissions. Some validators pay high commissions (up to 25% of their revenue) and some do not share yields at all. Sort the validators by APR and make sure they're paying out a commission fee before you vote. Some validators pay 0% commission, so a vote for them earns nothing.
There are many community validators that do not belong to Binance, and play a special role promoting the independence of the chain:
To get started with staking you’ll need Binance Chain Wallet browser extension with a set up BEP2 account.
Withdraw BNB from Binance to your BEP2 Binance Chain Wallet. This is an important step. You can also move BNB from Binance Smart Chain's wallet.
Once you have BNB in your BEP2 address, connect your wallet and click "Delegate" to choose a validator to delegate to. We suggest one of the community valiadators which don’t belong to Binance. Make sure to pick one with high APR and commission rates! Sign the transaction and wait for it to go through.
You will not be paid right away. Payments begin in 3 days and come every single day at the same time (midnight UTC). During busy times like right now the return is 30% APR but during slow times it can drop below 15% APR. You’re actually collecting peoples’ transaction fees so it is going to depend on the traffic. But as more people learn about the high yields and great projects on Binance Smart Chain, this traffic will only grow.
Unstaking will lock up your BNB for 7 days. This is a long term investment in the network- takes 3 days to get paid, and takes 7 days to exit.
A note on economic security: Over 7,200,000 BNB is staked to the validators. A bad actor would need to spend $3,900,000,000 USD to promote their own validators and generate fraudulent transactions. Binance chain only needs $5bn to match Bitcoin’s level of economic security! Every dollar you invest is another dollar a bad actor needs to spend to attack the network. Defend your investment by staking!
Finally, keep in mind there are alternative strategies in DeFi, which are suitable for other investment goals (such as minimizing volatility). Please check out our other DeFi Strategy articles where we cover this entire chart in detail:
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These articles are for information only and do not constitute financial advice. You should continue do your own research before investing and find qualified crypto-friendly financial advisers. If you need help, most projects provide responsive help on their Discord channels. NEVER share your private keys or seed phrases with anyone, even if you're in trouble!
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