Binance Staking Strategy
A stacking strategy on Binance
typically refers to the practice of
consistently accumulating Bitcoin (BTC)
over time, often through automated
dollar-cost averaging (DCA).
This approach involves periodically
purchasing a fixed amount of BTC,
which helps mitigate the impact of
market volatility.
One way to automate
this is by using tools like stacking-sats-
binance, a GitHub project that
automates placing BTC market buy
orders on Binance by converting a set
percentage of your EUR balance into
BTC at regular intervals. This tool
requires a Binance API key with "Read
Info" and "Enable Trading" permissions
and allows users to set parameters
such as the percentage of EUR to
convert, a minimum interval between
orders (default 7 days), and a
maximum price threshold to prevent
buying above a set value.
Alternatively, Binance offers a direct
staking service where users can earn
passive rewards by locking up Proof-
of-Stake (PoS) cryptocurrencies like
BNB
, ETH, ADA, SOL, DOT, and ATOM.
To start, users must hold the desired
cryptocurrency in their Binance
account and submit a staking
request. Rewards are typically credited
daily or weekly and are automatically
added to the account.
The staking process involves a
bonding period, during which funds are
locked and
cannot be used, followed by an
unstaking period, which can take
several days, before the original funds
and rewards are returned.
The annualized reward rate depends
on the specific cryptocurrency,
network
conditions, and the underlying protocol.
For users seeking a more hands-off
approach, services like
deltabadger.com offer DCA as a
service, eliminating the need to run
automated scripts themselves.
When implementing a stacking
strategy, it is recommended to diversify
investments across different high-APY
coins to reduce risk.
The required investment to achieve a
specific monthly income goal can be
calculated using the
formula:
Investment Needed=
(APY÷12)Monthly Goal.
For example, to earn $50 per month
with a 12% APY, approximately $5,000
would be needed.
