Launched in September 2022, Binance Simple Earn is a crypto savings platform that enables users to generate passive income with their spot digital assets. The platform combines savings and staking products into a streamlined platform designed to increase the utility of idle crypto assets.
What is Binance Simple Earn?
Binance Simple Earn is a digital asset investment offering that enables crypto investors to earn daily rewards generated by their existing crypto assets. A part of the broader Binance Earn platform, Simple Earn can also be thought of as a crypto savings account, which gives Binance users the option of subscribing to saving products and staking Bitcoin, Ethereum, and numerous other assets.
The platform streamlines the process of generating passive income with crypto assets, and provides users the ability to utilize both locked and flexible products, tapping into the power of crypto staking and interest rates accumulation.
With the platform’s roll-out earlier this year, Binance unified Flexible Savings, Locked Savings, and Locked Staking products, under the Simple Earn umbrella. As of November, the platform features more than 300 crypto products, with varying expected annual percentage rate (APR) levels and subscription durations.
Binance Simple Earn products can be categorized into two broad categories – flexible and locked products. Whereas flexible products allow users to withdraw their assets at any time, locked products require users to part with their crypto for a longer period of time. However, locked products typically allow users to deposit larger amounts of crypto and earn a higher APR. To see a more detailed breakdown of the differences between flexible and locked products, see the table below.
|Flexible-term products||Locked-term products|
|Rewards distribution||initial rewards are deposited in the Spot account on the third day; after that, daily||initial rewards are deposited in the Spot account on the third day; after that, daily|
|Asset redemption||at any time||after the locked period ends|
|Yield expectations||low to moderate||moderate to high|
How to use Binance Simple Earn?
Contrary to certain yield-generating DeFi products, which require extensive knowledge of the Proof-of-Stake (PoS) consensus algorithm, crypto wallets, staking pools, transaction fee fluctuations, and more, Simple Earn lowers the barrier to entry and enables crypto newcomers and veterans alike to generate passive income with crypto.
If you are interested in earning rewards and seeing how to earn high yields, staking rewards, and using Binance’s savings offering to its full potential, you must first get familiar with how Binance Simple Earn works.
Follow the steps outlined in the following section to learn how to subscribe to a Simple Earn product, to see how Binance interest rates work in practice, and how crypto staking works.
Binance Simple Earn: A step-by-step guide
In this guide, we’ll take you through the process of subscribing to a Simple Earn product. For the purposes of this guide, we’ll be using BNB, the native utility and governance asset of the BNB Smart Chain (BSC) ecosystem. However, the process is virtually the same across different digital assets and Simple Earn product types (flexible/locked).
Step 1: Open Simple Earn
First, you’ll need to log into your Binance account. If you don’t have a Binance account, you can click here to create one. After that, select Simple Earn from the Earn drop-down menu on the Binance homepage.
Step 2: Select a Simple Earn product to subscribe to
The Simple Earn platform features more than 300 flexible and locked products that vary by the maximum expected APR, duration, flexible/locked options, and, obviously, by supported asset type. You can search for the asset you wish to use, or use filters to display assets that are deposited in your spot account. Once you’ve picked the product you’d like to subscribe to, click Subscribe.
Step 3: Select the duration of your subscription
As mentioned above, we’ll be using BNB for the purposes of this guide, locking it for the duration of 120 days to generate an estimated APR of 5.9%.
On the right side of the screen, you can see all vital information pertaining to the savings plan, including estimated interest, APR, and important dates.
You can toggle on or off the Auto-Subscribe option, depending on whether you wish to automatically resubscribe to the product upon its expiration (in our case, 120 days) or not.
To start the Simple Earn subscription, click Confirm.
Step 4: Confirm Simple Earn subscription
After confirming a Simple Earn subscription, you should be greeted by a popup notifying you of the successful start of the plan. To manage your plans, click View Holdings. Conversely, you can also manage your active and past Simple Earn plans by navigating to the Earn wallet section that’s nested in the account page.
How to manage Simple Earn subscriptions
The Earn wallet is the central hub for managing active and past Simple Earn subscriptions – it enables users to see the total value of their positions, daily and total profits, estimated interest rate payments, redemption date, locked period (if there is one), and more.
One particularly useful feature that is available through the Earn wallet is the ability to redeem crypto assets before the lockup period ends. You can find the feature by scrolling to the far right side of the screen (highlighted in red on the image above).
While redeeming assets before the lockup ends is possible, doing so foregoes accrued interest. Also, early redemption is not instantaneous – it can take a couple of days before assets are transferred to the spot wallet.
If you are content with the drawback of early redemption and still want to proceed, you must first agree to the Simple Earn Service Agreement and then click Redeem earlier.
It is worth noting that early redemption should be used only when unforeseen consequences, like extreme market conditions or the immediate need for crypto assets, arise. If you suspect you might need deposited crypto assets before the lockup period ends, you should strongly consider using flexible Simple Earn products instead – this way, the interest earned won’t be lost no matter when the funds are withdrawn.
Binance Simple Earn combines staking and savings products into a single crypto interest account that is easy to use and supports hundreds of different cryptocurrencies. Depending on users’ wants and needs, they can pick among more than 300 flexible and locked options available on Simple Earn.
If you want to learn more about the inner workings of Simple Earn, crypto rewards calculation and distribution, we kindly ask you to check our recent article on the topic.