**Always take in consideration non of this information is financial advice or official announcement from any specific project, I’m no financial advisor, trader or expert, this is just my personal opinion on certain project mention on this article, cryptocurrencies are extreme high risk assets and you must do you own research, never follow what I or other people say on internet**
I mention this before that Binance is a giant in the crypto industry stepping on top of the majority of crypto related business and it was just a matter of time before they announce their support for Ethereum staking, it’s not that hard for them since they already have the experience of running nodes, infrastructure when it comes to humans and hardware, also they have enough liquidity to run staking pools.
In order to run a staking pool or in this case nodes, you need a certain amount of liquidity, back on 2017 what I usually do on this staking coins was to get a few friends on discord and get all our coins into a single wallet and stake them to get as many rewards as possible because traditional staking is a game of who has the most coins, although this change with Ethereum staking. Similar to Horizon Masternode it requires certain technical skills and hardware to stake Ethereum, you need to keep up this node to keep its uptime, performance and efficiency on par with the network and if you dont then you will start getting penalties that may end up on loosing ETH = Loosing money.
Binance setup in giving the opportunity to small holders to stake Ethereum, they announce APY as high as 20% but we all know that will lower down once more people start to stake Ethereum, 20% APY is not high already and when it decrease I would expect a low as 4% to be honest, while people stake their Ethereum for YEARS that’s a lot of Ethereum locked up that will cause the price to go up significantly and when it becomes the only way to generate Ethereum instead of buying then more and more people will start staking, its possible that we may see a $48k node price tag when ETHEREUM breaks all time highs next year, so getting all this Ethereum to start a staking pool is not easy at all.
So I already mention that to run a node you need 32 Ethereum, you need to be somewhat of an IT person, you need hardware preferible server grade for 24/7 operation and you need a good power and internet service if not a redundant source for both, to get rid of the last too you can rent a good dedicated server. Meaning running an Ethereum node is already an investment and it wont come cheap.
As other staking pools, Binance will be paying rewards in bETH that is their wrap Ethereum token on the Binance Smart Chain and to be honest I have way more faith on this wrap token that all other tokens offer by different ETH staking pools just because its Binance product, not saying it can’t failed but to me it gives me more confidence but nothing is perfect, for now it’s not a MUST but users who have completed KYC will be getting BNB rewards equivalent to bETH and this is just from December 02 to 16, consider this a small “airdrop” if you do KYC but I already don’t like that, lets hope it never becomes a MUST to KYC.
So let’s go to why Binance instead of other staking pools:
– It’s the biggest crypto exchange world wide
– You can stake with as low as 0.0001 ETH, that’s insane, that’s $0.05 at the moment of this post
– Large liquidity so you get paid
– Binance Smart Chain ETH token, bETH
Everything else is just the same game theory as most staking pools, ease of use, no tech knowledge need, no time-consuming and start with very low balance to stake, I was really thinking about staking some ETH on other platforms to just give it a try because Im sure staking wont outperform the price increment of Ethereum itself and at the moment you deposit ETH on any of this platforms including Binance is not Ethereum anymore, its not YOUR ETH anymore, it becomes another token that they pegged to ETHERUM, from earlier staking experiences I have notice that just holding the coin while others buy in and pump the price is a better strategy when there is such high demand for people to stake.
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