Hello crypto traders. Today I want to talk about a new opportunity for passive income on cryptocurrencies – Binance launchpool farming. This is one of the unique advantages of the Binance exchange, especially for traders who prefer to earn money with minimal risk. I will explain in more detail later.
What is Binance launchpool farming?
Binance launchpool is an online crypto farming of new coins on Binance. So the first project was Bell protocol, launched in September 2020. The current project at the time of this content creation (April 3, 2021) is ALICE. The investor is invited to contribute any of the three coins to the online crypto-farming liquidity pool.
The first and main coin for farming on Binance is BNB. A 70% reward is given for putting Binance Coin into the launchpool stack. In other words, for BNB, always offer the maximum number of bonus coins from the farming of a project at the launchpool. However, this option is more suitable if you have been holding BNB for a long time and bought it at a price of 7 to 30 USDT per coin.
Now (April 3, 2021) the cost of BNB is 344 USDT and is constantly changing. Having bought BNB at such a price, before or after farming, the token may fall in price and you will lose your profit, and possibly still incur losses. Although if you are ready to monitor the value of BNB in order to sell it on time, it is worth trying. But there will already be a combination of USDT_BNB trading + online farming.
Benefits of Binance launchpool farming
The second coin for cryptocurrency farming is BUSD (Binance USD coin). This is an analog of USDT, one of the stable coins and it is not very volatile, has almost the same value as the American dollar. A 20% reward is offered at lauchpool, but there are almost no risks. Just buy BUSD or exchange USDT for BUSD and drop them into the launchpool!
And calmly forget about farming digital money before listing the project on Binance, and then until the end of the farming itself. In the case of BUSD, there is no need to worry that your assets will fall in value or to trade actively with profit-taking, as is the case with BNB. Of course, your farming income will be modest as only 20% of the reward is given.
And the third coin can be any cryptocurrency, depending on the project itself. In the case of ALICE, it was CHR, with DODO – BETH, REEF – DOT, HARD – KAVA, ALPHA – BAND, XVS – SXP, and so on. Usually, only 10% is offered for the third coin, which is even less versus 20% for BUSD and several times less than 70% for BNB.
And given the lack of volatility of the token like BNB, the third-coin farming option at launchpool is only suitable for investors. That is, for people who have bought this token long ago or intend to buy it now at a good price and keep it for a long time. The choice of trading + crypto farming is categorically inappropriate here since it is better to take BNB even then.
How to make money on Binance launchpool farming?
How to make money on Binance farming? I have described the staking options for each of the three coins. The choice is only between BNB and BUSD. The process of making money is as follows. The first is to subscribe to the Binance telegram channel and when news of the new Launchpool comes out, exchange the free cryptocurrency for BUSD. The second is to go to the project page and add BUSD to the farming pool project.
Third, after the start of farming, after the first hour of its opening, you can check how many rewards you have received for farming. The reward will come every hour, depending on the amount of liquidity provided by you to the pool. The more BNB or BUSD you have in your Launchpool account, the more your income.
Fourth, it is possible to withdraw, but the bonus crypto will be available to sell only after the official launch of the project. Usually, farming starts 3-7 days before the listing of the protocol and you will have more time to receive bonus coins and sell them at a better price after listing. Fifth, after listing the project on Binance, you can sell bonus tokens at any time, even every hour or day. It is optimal to sell once a day.
Attention! During staking, you cannot use the cryptocurrency invested in Launchpool for other purposes, for example, trading! If you want to sell your tokens, for example, BNB has started to sell or you want to buy something with BUSD, you should withdraw money from Launchpool. But then you will lose the next reward as soon as you withdraw the money from the pool!
Binance launchpool farming video completed. I talked about a new opportunity for passive earnings on Binance with minimal risk and without the need to trade. Of course, there are some nuances here, for example, a lot of capital is required for investment in order to receive a good income. This concludes this video and see you soon at botcryptotrade.com