To generate passive income with Binance, sources mainly mention two direct avenues:
• Binance Earn: This is a tool that allows you to deposit your cryptocurrencies and earn an annual yield. Sources indicate that this tool can generate a yield of between 1% and 2% annually on the deposited cryptocurrencies. Additionally, a product called "Binance Earn Yield Arena" is mentioned, offering an Annual Percentage Rate (APR) of up to 13.3%.
• Staking: Although it does not specifically detail how staking is done on Binance, sources explain that staking (Proof of Stake or PoS) is a protocol in which users can become "validators" by holding cryptocurrencies from a specific blockchain. These validators are randomly selected (with priority given to those holding more cryptocurrencies) and receive rewards for validating transactions or creating new blocks on the network. The taxation of cryptocurrencies in Spain mentions staking as a service subject to VAT. This implies that by participating in staking, you can earn passive income.
• Loans: Binance also offers a "Loans" service. Although the source focuses on the possibility of borrowing one type of cryptocurrency using another as collateral, and notes that the fees can be high (up to 35%) for the borrower, the existence of this service implies that there is a counterparty that lends the funds. On platforms like Aave, users can borrow and lend cryptocurrencies using smart contracts. It is reasonable to infer that by lending your cryptocurrencies through these platforms (which are integrated or offered by large exchanges), you can generate passive income.
