Leading crypto exchange Binance now lets Tezos (XTZ) holders stake their tokens right from their dashboard wallet and earn rewards. According to the announcement released on December 3, Binance will implement the service starting from December 4, 2019.
Staking XTZ on Binance
Staking is another way to make profits with cryptocurrencies different from buying and selling cryptocurrencies when the price of the coin appreciates. It can be seen as passive income revenue such as mining and lending.
Staking is available for blockchains that use a Proof-of-Stake consensus algorithm and consists of “staking” its own tokens in order to participate in the transaction validation process. In other words, staking is the process whereby people deposit their PoS-based altcoins on specific cryptocurrency wallets or staking services and leave it there for a certain fixed period, to earn more coins as rewards. The higher the number of coins a user stakes, the higher is the possibility to get the reward.
Regarding the staking of Tezos on Binance, the rewards will be calculated daily, based on live snapshots and distributed monthly. According to the announcement, the distribution will be performed on the 20th of each month and, in order to qualify for staking rewards, users must hold at least one XTZ which is currently trading around $1,27 dollars.
Binance is not the only exchange that offers this service. Asby BTCManager previously, even the leading U.S.-based crypto exchange Coinbase lets Tezos (XTZ) holders their tokens right from their Coinbase wallet and earn rewards. The American exchange had the service previously for the institutional clients via Coinbase Custody.
Binance New Features
Binance has become a key point of access to the entire crypto ecosystem. In fact, the objective of Binance is to be the reference point for entry into the cryptocurrency market. Binance’s CEO Changpeng Zhao also recently announced that in the coming months he plans to add 180 FIAT gateways to enable anyone in the world to access Binance’s services.
A few days ago, the platform has also improved crypto internal transfers. Binance users are now able to make transactions without waiting times and spending fees. This is a great way to reduce the number of transactions that are made on Blockchain by avoiding wasting valuable memory space and improving scalability.