[Binance] The easiest way to stake Ethereum: Summary of risks and advantages / disadvantages
Ethereum (ETH) has added Proof of Stake (PoS) functionality with the December 2020 ETH 12 update. At PoS, you can get rewards for staking ETH.
In this article, we have summarized the features, methods, advantages / disadvantages and risks of ETH staking in binance.
What is ETH staking?
Staking system
Proof of Stake was introduced to operate the Ethereum network more efficiently..
In ETH1.0, instead of the "minor" who approved the transaction, the "validator" who holds a certain level of ETH guarantees the security of the network.
The conventional proof of work (PoW) consensus algorithm was concerned about the environmental load of mining, which consumes a huge amount of power, but it is said that the power consumption can be reduced by 99% by moving to PoS. ..
Rewards for staking
If you stake ETH, set up a validator and approve the transaction, you will receive ETH as a reward.This reward will vary depending on the total amount of locked ETH.The expected yield as of March 2021 is 3% per annum on an ETH basis.
Risk of staking
Currently in the transition stage, but for ETH 2.0 staking,
- Staken ETH cannot be removed for 1-2 years before the shard chain is installed
- At least 32 ETH is required to be a validator
- Varidata must always be online and there is a penalty for losing some of your holdings if you violate it
There are restrictions such as, and it is a little hurdle to do individually.
Therefore, there are services such as "Staking Pool" where you only need to set up a validator on your behalf and deposit ETH, and we also provide binance as well.
Unfortunately, no domestic exchange currently supports Ethereum staking.
ETH staking in Binance
What is Binance?
A cryptocurrency exchange that boasts the largest trading volume in the world.There is also a branch office in the United States, Binance US.
By cyber security companyCryptocurrency exchange security rankingIn 1st place: Kraken, 2nd place: 15rd place after Coinbase Pro (domestic exchanges are ranked XNUMXth in BitFlyer at the highest).
The official page is ↓
Features of ETH staking in Binance
- If you steak ETH, you will get the same number of "BETH".
- "You can receive staking rewards according to the amount of "BETH" you have.
- After the main net release of ETH 2.0, "BETH" can be redeemed XNUMX: XNUMX to ETH.
- "BETH" can be traded with "ETH" at any time on the exchange (exchange rate depends on market price)
The BETH you receive can be exchanged for ETH at any time, so you can exchange it when you want other coins, or you can stable coins via BETH → ETH → USDT in the event of a crash.This is a major feature of ETH staking in Binance.
What is BETH?
BETH is a token representing ETH stakes in Binanceso,Something like a voucher that can be exchanged XNUMX: XNUMX with ETH in the futureis.Having an ETH / BETH pair on the exchange has the role of dealing with the declining liquidity of ETH associated with staking.
Merit
- You don't have to operate the node as a validator yourself
- You can get rewards without 32ETH (OK from 0.001ETH)
- All staking rewards are distributed to users (zero commission)
I think that the service is too good that there is no fee for proxy and maintenance of Varidata. Perhaps it means "trade that much".
Demerit
- BETH can only be used on Binance Smart Chain
- The BETH⇔ETH exchange rate on the exchange varies from 0.90 to 1.00.
- Exchange risk (such as not being able to manage Gox or private keys yourself)
BETH can only trade and withdraw within exchanges and cryptocurrency wallets (binance, trust wallet, metamask, etc.) that support Binance Smart Chain (BSC). Depending on the rate of the BETH / ETH pair, the number of cards you have may be reduced by exchanging.
Also, since you are not registered as a virtual currency exchange company in Japan, you are completely at your own risk.
reference:[Inquiry] Binance warns from the Financial Services Agency!Is the use of overseas exchanges prohibited in the future?
How to stake ETH with Binance
The overall flow is just XNUMX steps.
- Register with Binance
- Deposit ETH
- Steak ETH
➀Binance OfAccountTo register.
(From here, 10% of the transaction fee will be kicked back in the referral campaign. Please do not hesitate to contact us.)
Please refer to the official help for how to register for Binance ↓
Set up security measures such as two-step verification, SMS verification, and withdrawal white list.
② Transfer ETH to the Binance wallet.
There are two ways to procure ETH, but if it is 2 yen or more, the former will bear less fees.
- Purchase ETH from a domestic exchange (bitflyer, bitbank, etc.) and send it to your Binance wallet.
- Purchase directly with a credit card (Visa / Mastercard only)
Credit card purchase is not a rip-off price like a certain domestic sales office, so I think that it is an ant if you want to try from a small amount or if you are worried about the remittance procedure.
③ When ETH is deposited, select "binance earning"-> "ETH 2.0 staking"-> "Stake Now" from "finance" at the top of the page.
Enter the amount of staking and press "Confirm" to display the notes.
The notes are the contents explained so far, but after understanding, "confirm" again.
If successful, this will be displayed.
Confirmation of reward
You can check the reward obtained by PoS from "Distribution record".It is properly distributed every day.
The staking reward will be paid in "BETH" according to the "BETH balance" in the physical wallet.
(BETH is deposited in a liquidity swap and cannot be used in other conditions)
The balance will be counted from the day after the day you apply for staking (holding), and the reward will be distributed from the next day (3rd day).
Not just the amount that was originally lockedBETH distributed every day is added to the base that determines the distribution amount for the next day, so it is a nice mechanism considering the effect of compound interest.
How to get more ETH with staking
There are other ways to get rewards besides the regular staking methods described above.
that isTrading with a BETH / ETH pair in Binance and owning BETHis.In the original method, the conversion from ETH to BETH is completely XNUMX: XNUMX.On the other hand, in the BETH / ETH pair on the exchange,If the timing is right, you can exchange for 1 ETH = 1.05 to 1.10 BETH, so you can deposit more ETH.
Since the reward is based on the "BETH balance", you can receive the reward with this method without any problem.MoreoverWhen you can redeem ETH, you will be back with 1 BETH = 1 ETH(There is information on the person who contacted Binance directly in the comment section).
The above is a summary of ETH staking in Binance.
In-Depth Discussions
Comment list
echo mis
If ETH is changed to BETH by Binance, will ETH's hard fork on 2021/4/14 be excluded?
If you know, please let me know
Thank you for your comment.I don't fully understand it either
BETH is "a tokenized asset that represents Binance-staken ETH and can be exchanged for ETH on a 1: 1 basis."
In this sense, BETH itself has nothing to do with ETH's hard fork.However, I think that there is no particular problem because it will be an updated ETH at the time of replacement.
Nice to meet you.I read this article and started ETH2.0 staking on binance on April 4th, but no rewards have been distributed until today.
How many days after the first staking, every day, etc.
Thank you.
Thank you for browsing.In my case, the reward is added two days after I first got the BETH balance. There should be no lock period such as "after holding for more than a few days", but there may be a time lag of several days due to the balance between the time when BETH was deposited, the recording time of the BETH balance, and the distribution time.
The application date is not counted, and the reward will be applied from the XNUMXnd day, and the reward for the XNUMXnd day will be distributed on the XNUMXrd day.So I think it will come in from the XNUMXrd day. (I think there is a reward when I comment ❗)
I started recently, can I use BSC (pancake swap, etc.) while receiving a staking reward in Binance?
Since the BETH balance in the physical wallet of Binance is counted, it seems that it is not compatible with operation with DeFi etc.I have moved to the launch pool and Liquid swap as a trial, but the reward was not distributed.
Thank you for the very easy-to-understand article.
We are staking ETH mined with reference to this article by Binance.
The staking rewards that started on the 18th were distributed on the 20th, but only reflect about 0.02% of the position.
It seems that you have been staking since the middle of March, so I would appreciate it if you could refer to it.
thank you for your comment.
The expected yield of compensation is an annual rate, so I think that's about what you can receive per day.If you do that for 1 days (x365), it should be about 365%.
Thank you for your reply!
Certainly, if you multiply by 365, it will be about 8%!
Excuse me for the ignorant and embarrassing question ...
I'm looking forward to updating my blog post!
Thank you very much.It would be encouraging to receive such comments.
I read the article.I've always been interested in Ethereum staking in Binance, but the Binance homepage says, "Stakes can't be redeemed in the first phase. It can take more than two years." https://www.binance.com/ja/eth2
I was scared. You will be rewarded two days later, right?
Also, is there a staking period? I can't put it out for a month
Thank you for browsing.It depends on the staking time, but it seems that everyone will be reflected in about 2-3 days.There is no lock period and you can withdraw at any time by exchanging BETH for ETH on the exchange.
Thank you for your reply.
However, another article says, "The deposited ETH cannot be withdrawn until Phase 2 (about 2 years)". Is there really a lock period?
This site. https://coinpost.jp/?p=196419
Oh, but can I become BETH and withdraw or trade?
That recognition is right!
Does that mean that this 2.0 staking is a complete deposit and win, other than worrying about the simple ETH quotes and BETH / ETH exchange rates?The story is too good ...
Well, ETH's own price increase does not last forever, so it is not without risk. There was a time when it was 2018/1 from the highest price in 10 ...
I always refer to it.I have a question
① Even if you buy beth with the actual Ethereum without staking
Does that mean that you will be rewarded after 3 days?
Or does it mean that you have to stake even a little?
② As of today, beth is 0 (9349 yen) against Ethereum.
You can buy 1beth for 1 Ethereum, so don't cash in the middle
If the first phase is over and Ethereum and beth can be converted one-to-one
Do you mean you get about 7%?
Please answer when you have time.
Thank you for reading.
➀ I started by staking, but it may be okay to just own BETH from the beginning.If it doesn't work, you can start from 0.001 ETH, so why not apply for staking?
➁ I read the official explanation and thought so, but the interpretation may be different.I would like to take a look at the opportunity and contact us.
Thank you for the easy-to-understand article.
Excuse me for the long sentence below.
I was worried about ②, so I got on and asked Binance a question (Binance Chat Case ID # 73055572).
As of today, beth is 0,9349 (390096 yen) against Ethereum. Yoy can buy 1,0696beth for 1 Ethereum. Without cashing on the way If the first phase is over and Ethereum and BETH can be converted one-to-one. Do you mean you get about 7%? Please answer when you have time.
Then from Binance,
Thank you for your inquiry. Yes, you are completely right. If phase 1 completed, you can convert your BETH to ETH in 1: 1 basis, then you can get 7%. Please make sure, BETH is the token that BInance created, And BETH itself is not ETH itself. It is kind of a right to convert ETH on a 1: 1 basis in the future. That is probably why BETH price is slightly cheaper than ETH price.
I got a reply.As Mr. Nakamura said, it seems to be profitable.I don't know when Phase XNUMX will be. ..
Thank you for contacting us.Thank you for sharing this very important information.
The management also firmly says, "At the current market price, you can get + 7% just by changing from ETH to BETH."
It is said that even if you trade ETH → BETH and the number of sheets increases, you can get a staking reward for the number of BETH.
If there is an unrealized gain on ETH when trading from ETH to BETH, is it considered that I have purchased BETH and is taxable?
Thank you for your comment.It's strange and difficult to think of stakes ETH as a different coin than ETH ...
To be honest, I can't judge, so I think it's best to ask the nearest tax office, I'm sorry.
I think I'm mistaken for it,
・ Get the same number of BETH.
・ You can receive rewards according to the amount of BETH you have.
・ After the main net, BETH redeems ETH XNUMX: XNUMX.
If you just look at it, you can get it if you don't touch the BETH you got and the ETH doubles later, but that's definitely not the case.
(It looks like the relationship between Nem and the symbol)
Sorry for the complicated explanation.In redemption after the main net, you will return your BETH and receive ETH, so it will not be doubled.
Ah, did you mean to return it?
No, it's not because of Mr. Shiratama's explanation, at all.I'm surprised that the question is a little too stupid.
Thank you very much for your precious time ♂️