There are several ways of earning in the crypto world, from airdrops to staking and a lot more.
But what makes daily compound interest earning different from them all is the concept of accumulating funds over time, that is, interest is accrued to the initial investment over some couple of years, and one such platform by which you can do this is Binance, the world’s largest cryptocurrency exchange.
Therefore in this guide, I will provide insights on how you can earn daily compound interest on Binance. Keep Reading!
Key Takeaways
• Earning interest involves reinvesting funds from interest-bearing products like crypto savings, loans, and staking.
• Binance is a great crypto exchange where you can earn compound interest on crypto compared to just locking the fund for a few days.
• It is a great crypto exchange where you can earn compound interest on crypto, especially for crypto users outside the US. It is regarded as the largest platform in terms of trading volume and offers over 600+ coins to buy, sell and trade!
• A feature known as the Auto-Subscription feature on Binance Earn will automatically compound your Savings and Staking yields every day to Flexible Savings.
• You can resubscribe as soon as the current subscription expires to compound returns from your Binance Staking and Fixed Savings.
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How to Earn Daily Compound Interest on Binance
To earn daily compound interest on Binance, you can do it right on the exchange. And there are different ways by which you can do so without losing any time in accumulating funds.
The best way to do so is to earn compound interest via the Auto-Subscription feature for Binance Savings.
To do this, you must first subscribe to either Flexible Savings or Binance Staking.
From there, Binance would send your interest to your Spot Wallet daily. Although you can reinvest these returns yourself, you can also automate compounding with the Auto-Subscription feature to ease the process.
By switching on the Auto-Subscription feature, the popular crypto exchange will take the earned interest and subscribe them into Flexible Savings, compounding your interest daily.
And one way to maximize this daily compound interest is to ensure you are reinvesting your principal and earnings as soon as the campaign ends, which has been made easier by the Auto-Subscription feature.
Suppose your goal is to earn interest on cryptocurrencies apart from the top 10 in the market Capitalization. In that case, you will have access to some awesome APYs, e.g. You can earn interest on Polkadot and NEAR at an APYs of 18% and 21%, respectively. The interest in them will continue to expand as you reinvest.
Axie Infinity also offers about 104% on a 90-day lock-up period, which can be compounded over time as you reinvest in Binance.
If you’re more interested in large-cap projects, you can earn up to 5% APY when depositing Bitcoin.
How Daily Compounding Interest Works
The concept of compounding is nothing out of the blue or extraordinary. Despite its popularity, only some people use it for daily earnings.
For those who have little idea of how the whole thing works, it’s nothing too complex. All it requires is time and patience. Imagine you deposited some money, and at the end of a year, a certain amount accrued to your initial funds.
Now, assuming you withdrew your funds and interest and reinvested them both for a space of five to several more years, you will end up with what is known as compound interest, which would be several times the initial amount you invested.
One thing that should be duly noted when it has to do with compound interest is time. With time, small APYs can compound time to become a very large sum.
Frequently Asked Questions (FAQs)
Q1. Is Binance APY compounded?
Yes, of course, it is. The Annual Percentage Yield, or APY, has interests that are compounded quarterly, monthly, weekly, or daily, while its APR, or Annual Percentage Rate, isn’t.
Q2. Does crypto give compound interest?
Yes, crypto gives compound interest, but it is not an automatic process, as it has more to do with the constant reinvestments of your crypto funds and interests over a specific period which might even take a few to several years.
Q3. How do you earn daily interest in Binance?
You start earning interest immediately; you subscribe to a savings plan.
Your interest will be distributed to your Spot Wallet on Binance the day after the interest has been generated on the funds. It is usually rounded down to 8 decimal places.
Final Thoughts
Earning compound interest on Binance is one of the several ways to accrue more funds via your crypto assets. However, compared to staking, it will take time, diligence, and patience because it is a gradual but continuous process.
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