What Is Binance Earn?
All passive income products — savings, staking, DeFi, Launchpool — in one platform.
Estimated APY Range
0.5%–12% APY (varies by asset + lock-up tier)
300+ Supported Assets
Earn on BTC, ETH, SOL, BNB, stablecoins, and hundreds of altcoins.
What Is Binance Earn?
Use the calculator below to estimate your liquidation price for any leveraged position. While Binance and Kraken use different maintenance margin tiers, this calculator provides a reliable baseline. Kraken's lower max leverage (50x) means positions are generally further from liquidation at equivalent notional sizes.
Binance uses a tiered maintenance margin system with rates starting at 0.4% for Tier 1 positions (up to 50 BTC notional). As your position grows, maintenance requirements increase progressively up to 5% for the largest tiers.
When your margin ratio drops below the maintenance requirement, Binance initiates multi-step partial liquidation:
Binance Earn Products Overview
Binance's $1 billion+ insurance fund (converted to BTC in 2025) absorbs the difference between liquidation and bankruptcy prices. This massive fund means ADL events are extremely rare — they only trigger when the insurance fund is depleted during extreme market conditions.
Simple Earn Flexible
Deposit any supported asset and earn daily rewards with no lock-up. Withdraw at any time. Lower APY but maximum liquidity — ideal for funds you may need to access quickly.
Simple Earn Locked
Commit assets for 30, 60, 90, or 120 days in exchange for significantly higher APY rates. Early redemption is possible but forfeits all accrued interest. Best for long-term holders.
DeFi Staking
Binance routes your assets to vetted DeFi protocols (Lido, Aave, Venus, etc.) and manages the technical complexity. Higher potential yields come with additional smart contract risk.
Dual Investment
An advanced structured product that lets you earn enhanced yield by committing to buy or sell crypto at a target price on a settlement date. Suitable for experienced traders.
Launchpool
Stake BNB or FDUSD to earn newly listed tokens before they hit the open market. Farm allocations are proportional to your stake. One of Binance's most popular features.
Auto-Invest
Set up scheduled, recurring purchases (daily, weekly, or monthly) to dollar-cost average into any supported asset. Combine with Simple Earn to auto-earn on purchased tokens.
Kraken's futures platform (formerly Kraken Futures, acquired from Crypto Facilities in 2019) uses a multi-collateral system with tiered margin requirements. Maximum leverage is capped at 50x — significantly lower than Binance's 125x.
How to Use Simple Earn (Step-by-Step)
Key differences in Kraken's approach:
Create and verify your account
with your email address. Complete KYC verification by uploading a government-issued ID — most approvals happen within 10 minutes. European users benefit from SEPA integration for zero-fee EUR deposits.
Deposit funds or buy crypto
Transfer EUR via SEPA (free) or SEPA Instant, or deposit crypto from an external wallet. If you deposited EUR, purchase the asset you want to earn on (e.g., ETH, SOL, BTC) using the spot market or the simple buy/sell interface. Use USDC or EUR trading pairs — USDT pairs may be restricted for EU users under MiCA.
Navigate to Binance Earn
Go to Earn > Simple Earn from the top navigation menu, or search for a specific asset directly. The interface shows all available products with their current APY rates, minimum subscription amounts, and available lock-up durations.
Choose flexible or locked savings
Select your preferred term. Flexible lets you redeem anytime with lower APY. Locked options (30, 60, 90, or 120 days) offer significantly higher rates but your funds are inaccessible during the lock-up period. Review the estimated APY, minimum amount, and terms carefully.
Subscribe and start earning
Enter the amount, confirm the terms, and click Subscribe. Rewards begin accruing the next day and are distributed daily to your spot wallet. Track your earnings in real time via the Earn dashboard under your portfolio.
APY Comparison: Flexible vs Locked
For retail traders, Kraken's more conservative leverage limits act as a built-in safety net. You physically cannot take on the same level of risk as on Binance, which some traders — especially beginners — may prefer.
| Asset | Name | Flexible APY | Locked APY |
|---|---|---|---|
| BTC | Bitcoin | 1–2% | 2–5% |
| ETH | Ethereum | 2–3% | 3–5% |
| USDC | USD Coin | 3–5% | 5–10% |
| BNB | BNB | 0.5–1% | 1–3% |
| SOL | Solana | 5–7% | 7–9% |
The gap between 50x (Kraken) and 125x (Binance) is not just a number — it fundamentally changes how close your liquidation price sits to your entry:
Launchpool Explained
Approximate values assuming isolated margin and no maintenance margin buffer. Actual liquidation prices vary by exchange tier.
How to Participate
- Hold BNB or FDUSD in your Binance spot wallet
- Navigate to Earn > Launchpool and select an active project
- Stake your tokens into the farming pool — allocations are proportional to your stake
- Earn new tokens hourly throughout the farming period (typically 7–30 days)
- Unstake at any time without penalty — your BNB/FDUSD is never at risk of being consumed
Historical Returns
Key insight: At 125x leverage, a 0.8% price move wipes out your entire margin. Kraken's 50x cap means the minimum liquidation distance is 2% — giving you 2.5x more breathing room at max leverage. For most professional traders, neither uses max leverage — the sweet spot is typically 3x–10x.
Both exchanges are fully operational in the EU, but their regulatory footprint differs:
Risks of Binance Earn Products
Bottom line: For high-volume derivatives traders, Binance offers unmatched liquidity, more pairs, and a larger safety net via its insurance fund. For traders who prioritize conservative risk management and a long regulatory track record, Kraken is a strong choice — especially in the EU where both exchanges offer free SEPA deposits and MiCA compliance.
Smart Contract Risk
DeFi Staking products route your assets to third-party protocols. Bugs, exploits, or vulnerabilities in these smart contracts can result in partial or total loss of deposited funds. Binance vets the protocols it integrates with, but cannot eliminate this risk entirely.
Impermanent Loss (DeFi)
Certain DeFi yield products involve liquidity provision, where the value of your deposited assets can diverge from simply holding them. This impermanent loss can result in receiving fewer tokens back than you deposited, even if the product showed a positive APY.
Lock-Up Risk
Locked products make your funds inaccessible for the chosen duration (30–120 days). If the market crashes during this period, you cannot sell or move your assets. Early redemption is possible but forfeits all accrued interest. Flexible products avoid this but offer lower returns.
Platform / Counterparty Risk
All Binance Earn products are custodial — you trust Binance with your assets. While Binance is MiCA-compliant, maintains a $1 billion SAFU insurance fund, and publishes Proof of Reserves, the risk of platform failure is never zero. Consider diversifying across platforms.
EU-Specific Earn Product Considerations
Regardless of whether you trade on Binance or Kraken, these principles keep you safe:
Product Availability by Region
Binance offers low spot fees, deep liquidity, and a wide range of trading tools. Create a free account to explore.
Stablecoin Yield Products
In practice, this means:
Tax Treatment of Earn Rewards
This transition is a net positive for EU traders: USDC's transparent reserve model and regulatory oversight provide stronger guarantees than USDT ever offered.
Frequently Asked Questions
What Is Binance Earn?+
What is the difference between Simple Earn Flexible and Locked?+
How does Launchpool work?+
Is Binance Earn safe for European users?+
How are Binance Earn rewards taxed in the EU?+
Can I use USDT on Binance Earn in Europe?+
What is the minimum amount to start earning?+
How often are rewards distributed?+
Start Earning on Binance
Put your crypto to work with flexible and locked savings, staking, and yield products — all in one platform.
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Risk Disclaimer
MiCA regulates crypto-asset service providers and stablecoin issuers, but it does not cover:
For a broader overview of how European regulations affect your trading, see our EU crypto tax guide and our KYC requirements explainer .
How does Binance stack up against the top EU-friendly exchanges? Here's a side-by-side comparison: