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From this February 10, 2021 the cryptocurrencies Cardano (ADA) and Cosmos (ATOM) are included in the staking service offered by the exchange Binance, according to an announcement published by the company on Twitter.
In its message, Binance explains that, with the incorporation of these two crypto assets, the amount of Cryptocurrencies available for the system of staking locked ( locked staking) on this platform rises to 36.
Exchange house users may block funds for a period of 15 days. It is estimated that will receive an Annual Percentage Yield (APY) of 21.79% for ADA, and 24.79% for ATOM . Interest will be placed daily in their wallets.
By opting for the service, interested parties will be able to block at least one unit of both cryptocurrencies and a maximum limit of 1,000 ADA and 50 ATOM per user.
The exchange clarifies in its writing that, once the funds are included in staking will be automatically deducted from the user’s wallet, so cannot be exchanged or withdrawn during the period of lock .
However, they can be redeemed before the unlock date, paying a certain amount. Likewise, those who wish to receive an early refund will have the interest received from the capital deducted, and will be paid within three days .
Shortly after the release of this information, the prices of Cardano and Cosmos shot up in the market . At the time of this writing, the price of ADA reached its highest value in the last three years ($ 0.92), with a rise of 70% in seven days. ATOM, for its part, was trading at USD 21.51, up 78% in one week.
The inclusion of ADA and ATOM comes shortly after Binance launched a new activity of staking , in this case with the Avalanche cryptocurrency, AVAX. With this cryptoactive an estimated annual percentage yield of 32.79% is offered.
The staking , a method that gains popularity
Binance’s note highlights the rapid expansion of its staking service, which started with just eight cryptocurrencies in September 2019. Those cryptocurrencies were: NEO (NEO / GAS), Ontology (ONT / ONG) , Vechain (VET / VTHO), Stellar (XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM), and Stratis (STRAX).
Earlier this year , the exchange announced its alliance with the IOST platform, achieving that more than 800 million IOST tokens were placed in the new staking system of that blockchain.
Blocked staking is an investment method by which users of a certain platform have the possibility of placing funds in a portfolio, in order to earn interest . It also allows to support the operations of a blockchain network, mainly those that work with the Proof of Stake system (Proof of Stake or PoS).
With the PoS those who confirm transactions on a blockchain receive income. Participants’ earnings are defined according to the amount of cryptocurrencies that are stored in a specific portfolio. The greater the number of coins, the greater the possibilities of generating profits.
With the great fever of decentralized finance (DeFi), which emerged in the course of 2020, the activity began to become popular as a way to earn income in the cryptocurrency ecosystem. As CriptoNoticias has been reporting, it was precisely this mechanism that Ethereum chose to initiate the transition process towards its new version , ETH 2.0.
The post Binance users can now earn interest from Cardano and Cosmos staking appeared first on World Weekly News.