Binance, the world’s largest cryptocurrency exchange by volume, has launched a new “savings” service that allows users to earn interest on their cryptocurrencies. The service, called “Binance Savings,” is available to users in select countries, including the United States.
The launch of Binance Savings comes as the cryptocurrency industry is seeing a growing number of companies offering “interest-bearing” accounts for crypto holdings. These services typically work by allowing users to deposit their cryptocurrencies into an account and then earn interest on those deposits.
The interest rates on these accounts can vary widely, but they are typically higher than what traditional banks offer for savings accounts. For example, BlockFi, one of the leading providers of crypto interest accounts, currently offers an annual percentage yield (APY) of up to 8.
6% for Bitcoin deposits.
While the APYs offered by these services are often attractive, it’s important to remember that they come with risks. First and foremost, the value of cryptocurrencies is highly volatile, which means that the value of your savings could go up or down over time.
Additionally, these services are not FDIC-insured, which means that your deposits are not protected in the event of a hack or bankruptcy.
With that said, Binance is one of the most well-known and trusted names in the cryptocurrency industry. The company has built a reputation for being secure and reliable, and its new savings service appears to be no different.
Binance Savings is available only to users who have completed KYC verification on the Binance platform, which adds an additional layer of security.
Additionally, Binance has implemented a number of security measures to protect user funds, including multi-factor authentication and two-factor authentication. Overall, Binance Savings appears to be a safe and secure way to earn interest on your cryptocurrencies.