BNB Staking 101: How to Stake Using Binance.US

Discover how to stake BNB to build your crypto portfolio.

This article was last updated on April 19, 2023, for accuracy and clarity.

Staking BNB is one way to potentially grow your crypto without having to make trades or time the market.

In this article, you’ll learn how BNB staking works, the benefits it has to offer, and how to get started.

What Is BNB Staking?

Defining BNB

BNB is the abbreviated trading symbol, or ticker, for Build and Build. BNB is the native asset that powers the BNB Chain ecosystem.

BNB is used for a variety of purposes, including:

  • Paying gas fees on BNB Chain
  • Qualifying for trading fee discounts on some cryptocurrency exchanges, including Binance.US
  • Payment asset on third-party services
  • Medium of exchange on the BNB Chain ecosystem

A unique feature of BNB is the auto-burn system that periodically (i.e., every three months) removes coins from circulation in order to permanently reduce the total supply.

Defining Staking

Staking is a way for new and long-time cryptocurrency buyers and sellers to earn passive income on their holdings.

In the case of BNB staking, staking is performed by committing BNB tokens  towards securing the asset’s proof-of-staked-authority (PoSA) network (more on this later).

As long as a user leaves their BNB staked, the coins are used by the system to verify transactions, facilitate decentralized governance, and bolster the network’s resilience. To make it practical for coin holders to engage in BNB staking, the network generates rewards as an incentive.

Getting involved in BNB staking on your own can be a complicated and labor-intensive process — so much so that most people don’t have the technical skill or computer hardware necessary to make it work.

That’s where crypto platforms, like Binance.US, come in. These platforms provide the technical know-how and user-friendly interface necessary to make BNB staking practical and beneficial for anyone and everyone.

A Bit About the Proof-of-Staked-Authority (PoSA) Network

A proof-of-staked-authority (PoSA) network or model is, essentially, a consensus mechanism through which a blockchain can validate transactions and verify that a user owns the digital assets that they claim.

In this model, users who stake BNB help validate any new transactions, ensuring transactions are legitimate. As you validate new transactions, you earn rewards from the network.

It is entirely possible to do this on your own, but when you get involved with BNB staking on a crypto platform, you pool your funds together with others into large blocks that can get more done in a shorter amount of time.

Pooling funds in this way makes it easier for the platform to earn more rewards from the network. The platform can then pass rewards onto the individual asset holders who did the original staking.

These rewards would have been out of reach if the asset holders had tried to validate transactions on their own. But, joined together via BNB staking, users can now gain access to the blockchain and earn the rewards available on the network.

It’s essential to do your research before choosing the platform you’re going to use. Not all platforms offer BNB staking, so you’ll want to make sure you partner with one that does.

BNB Staking Tips

1) Form a Strategy

Before getting involved in BNB staking, form a strategy that covers important details, such as:

  • How much you want to stake
  • How long you want to stake
  • The benefits you hope to achieve
  • The types of returns you want to earn
  • The minimum interest rate you’ll accept

The more well-rounded and complete your strategy, the better prepared you’ll be to deal with the ups and downs of the cryptocurrency market and stay out of positions that are detrimental to your portfolio.

As you develop your strategy, don’t be overly influenced by what others are doing. No two individuals will share the exact same approach to the market, so build a plan that works for you.

2) Create a Crypto Wallet

Just like the wallet you carry in your pocket, a crypto wallet is a place for those involved in the cryptocurrency market to store and manage their crypto funds.

Though crypto wallets can come with a variety of features, they generally fall into one of two categories: hot wallets and cold wallets.

Hot wallets are those that online crypto platforms offer to their customers and are usually software or cloud-based.

Cold wallets, on the other hand, are those that store cryptocurrency offline in a more tangible asset, such as an external drive.

If you have the right technical knowledge, hardware, and funds to get started, you can create a crypto wallet and get involved with BNB staking on your own.

The vast majority of users, however, will be better served by lending their BNB tokens to a staking pool via an ecosystem such as Binance.US.

When you partner with a crypto platform, you can earn rewards without having to operate and maintain your own validator hardware or go through the long, complicated process to get your BNB staking up and running.

3) Research the Minimum BNB Staking Requirements

The minimum BNB staking requirements will vary from platform to platform and blockchain project to blockchain project.

Research those minimums before getting involved so you have the funds available to adhere to the strategy you developed earlier.

4) Diversify

BNB staking is a great way to get started in the cryptocurrency market. But, if you have all of your eggs in one basket, so to speak, you’ll be more susceptible to the volatility of the market.

One of the best ways to protect yourself from becoming overexposed is to diversify your portfolio.

Though you may settle a large percentage of your funds in BNB staking, you can set up a safety net of sorts by staking other coins or by getting involved in an entirely different part of the crypto market (e.g., buying, selling, or trading).

5) Be Patient

Patience is key when it comes to crypto. Jumping from one position to another can often lead to mistakes and lost revenue.

And, if you do want to grow your crypto, resist the temptation to buy and stake unproven cryptocurrencies just because there’s a lot of hype around them.

Some people talk up a coin or token on social media for the sole purpose of inflating its value so they can then sell their holdings at high prices and flee the market before the value crashes.

Start Staking BNB Today

Staking BNB with a crypto platform, like Binance.US, is an easy way for crypto holders to put their tokens to work and earn rewards in the process.

But, with Binance.US, that’s not the only option you have.

Whether your strategy involves trading, HODLing, staking, or anything in-between, choosing Binance.US as your crypto platform is one of the fastest, most convenient ways to expand your portfolio and grow your crypto.

Sign up with Binance.US today to begin your crypto journey.

Download the Binance.US app to trade on the go: iOS | Android

Legal disclaimer: This material has been prepared for general informational purposes only and should NOT be: (1) considered an individualized recommendation or advice; and (2) relied upon for any investment activities. All information is provided on an as-is basis and is subject to change without notice, we make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, reliability, availability or completeness of any such information. Binance.US does NOT provide investment, legal, or tax advice in any manner or form. The ownership of any investment decision(s) exclusively vests with you after analyzing all possible risk factors and by exercising your own independent discretion. Binance.US shall not be liable for any consequences thereof.

Share this article: Link copied to clipboard!

You might also like...

All About BNB