Many people believe that earning cryptocurrency requires active trading. However, Binance offers a feature called Launchpool, which allows users to earn new tokens by staking their existing crypto assets, without the need for trading.
What is Binance Launchpool?
Binance Launchpool is a platform where users can stake their cryptocurrencies, such as BNB (Binance Coin), FDUSD, or USDC, to earn new tokens from upcoming projects. By participating in Launchpool, users support new blockchain projects and, in return, receive a portion of the new tokens. This process is similar to earning interest in a savings account.
How Does It Work?
- Create and Verify a Binance Account: Users must first sign up for a Binance account and complete the necessary identity verification (KYC) process.
- Stake Supported Cryptocurrencies: Once the account is set up, users can stake supported cryptocurrencies like BNB, FDUSD, or USDC in the Launchpool.
- Earn New Tokens: By staking these assets, users earn new tokens over a specified period. The amount of new tokens received depends on the amount staked and the total pool size.
- Withdraw at Any Time: Users have the flexibility to withdraw their staked assets at any time during the staking period.
Examples of Recent Launchpool Projects
- RedStone (RED): Users could stake BNB, USDC, or FDUSD to earn RED tokens. BNB stakers received 80% of the rewards, while USDC and FDUSD stakers shared the remaining 20%.
- Nillion (NIL): By staking BNB, USDC, or FDUSD, users earned NIL tokens. The distribution was similar, with BNB stakers receiving the majority of the rewards.
- BIO Protocol (BIO): Participants staked BNB or FDUSD to earn BIO tokens. BNB stakers received 85% of the rewards, and FDUSD stakers received 15%. CoinCodex+1Binance+1
Benefits of Using Launchpool
- No Trading Required: Users can earn new tokens without engaging in trading activities.
- Flexibility: Staked assets can be withdrawn at any time, providing users with control over their funds.
- Support New Projects: By staking, users support emerging blockchain projects and receive tokens as a reward.
Considerations
- Market Risks: The value of staked assets and earned tokens can fluctuate based on market conditions.
- Project Research: It’s essential to research each project before staking to understand its goals and potential risks.
Getting Started
To participate in Binance Launchpool:
- Sign up for a Binance account and complete the verification process.
- Deposit supported cryptocurrencies like BNB, FDUSD, or USDC into your account.
- Navigate to the Launchpool section on Binance and choose a project to stake your assets.
- Monitor your rewards and withdraw your staked assets or earned tokens as desired.
For more detailed information, you can visit the official Binance Academy article on Launchpool.
