Step-by-Step Guide to Buying your first Cryptocurrency
Cryptocurrency, especially bitcoin has almost become a buzzword today as more and more people consider…
As is already publicly known, cryptocurrency exchanges play a critical role in enabling investors and trader access the coveted virtual currencies. Whether it is for swapping crypto or making fresh purchases, crypto exchanges are indispensable, at least at the moment. Binance is one of the most popular exchanges today that any investor will somehow interact with on the long journey towards making fortunes from crypto.
In cryptocurrency, launchpool connects different stakeholders in the industry. They include marketers, experts, funds, as well as communities. It was introduced in 2020 and the platform enables the users to stake the crypto tokens as they earn new ones. The good thing about it is that everything is done for free. I bet as a trader; this is a good way of earning passive income.
The launchpools play an important role in enabling crypto investors to connect. Through the new projects, the traders can leverage knowledge and expertise. This may help them maximize their projects. The process is conducted in a transparent way by incentivizing and aligning the stakeholders.
Launchpool staking entails utilizing the crypto assets in delivering funds to the liquidity pool. Through this, you can get some returns as new tokens. The process is DeFi yield farming. The tokens accumulated daily vary and it all depends on the amount that you have staked. Also, it depends on the number of tokens that you commit to the pool.
The process of calculating the tokens is usually done on an hourly basis. However, it happens during the period in which you are active. Earning of tokens also happens after about 30 days. After farming, you can trade the token after seven days. It is during this period that you are allowed to trade the new tokens that you accumulated over the period of staking.
Binance, a crypto exchange platform, supports about 20 Launchpool projects. From the 17 projects that have been completed, the token distribution reached $85.3 million. Moreover, the farming pools had about $5.46 billion of Binance.
The project in the launchpool offers about 24% of annual percentage yields (APY). The highest project in Binance with high APY was about 113%. Also, launchpool offers value to the communities, investors, and users. For instance, in some cases, launchpool helps projects to raise funds while at the same time helping them in growth.
As a launchpool holder, you will have access to projects in the earliest round. This enables the visitors to get the best prices. However, they do not have to associate with the minimum threshold that is reserved for the investment funds. Also, it enhances peace of mind as an investment. The reason is that it invests in bona fide projects which have been vetted at different levels. Lastly, as an investor, it will give you a chance of being part of an important project.
Furthermore, the launchpool users earn free tokens through BUSD and BNB. These are the assets that are mainly held by Binance users. Also, the rewards are normally provided hourly. Also, the users may claim them anytime when they are tradeable. There are high chances that the projects listed in the Binance Launchpool will be listed in the Binance exchange.
Currently, there are several people in the Binance Launchpool userbase. Therefore, the farming APYs are so low. Another disadvantage is that there are just 30 days for traders to participate. This seems to be a short period.
After that, it means that you have successfully participated in the Launchpool.
The Binance users have the opportunity of earning new tokens as they also manage the existing digital assets. The tokens which are earned are normally computed hourly from the time you commence staking. As I mentioned earlier, a trader can redeem or even harvest earnings at any time.
Launchpool is basically the place in which traders farm new tokens while depositing their crypto assets. After the process is complete, the amount staked is given to the users back in full. In addition, they are given the amount that they have earned. As a user, you have the opportunity to un-stake funds when they need.