# How to Farm ATOM on Binance Earn: Step-by-Step Guide for Passive Income
Farming ATOM on Binance Earn offers a streamlined way to earn passive income with Cosmos’ native cryptocurrency. Binance Earn simplifies staking by handling technical complexities, providing competitive yields, and enabling flexible participation. This step-by-step guide will walk you through the entire process while highlighting key benefits and considerations.
## Step-by-Step Guide to Farming ATOM on Binance
Follow these steps to start earning rewards with your ATOM tokens:
1. **Create/Log in to Your Binance Account**
– Sign up at Binance.com (complete KYC verification)
– Enable two-factor authentication for security
2. **Acquire ATOM Tokens**
– Deposit ATOM from an external wallet
– Or buy ATOM directly via Binance Spot Market using fiat or crypto
3. **Navigate to Binance Earn**
– Click ‘Earn’ on the top menu
– Select ‘Staking’ from the dropdown options
4. **Choose Your ATOM Product**
– Search for “ATOM” in the staking marketplace
– Compare options:
– *Locked Staking*: Higher APY (5-10%), fixed terms (30-120 days)
– *DeFi Staking*: Flexible redemption, variable yields
– *Liquid Staking*: Receive staked tokens (e.g., BNB) while earning
5. **Stake Your Tokens**
– Click ‘Stake Now’ on your chosen product
– Enter the ATOM amount (minimum typically 0.1 ATOM)
– Confirm terms and execute the transaction
6. **Track & Manage Earnings**
– View rewards in ‘Earn Wallet’ → ‘History’
– Reinvest rewards automatically via ‘Auto-Stake’
– Redeem funds when term ends (Locked Staking) or anytime (Flexible products)
## Key Benefits of Farming ATOM on Binance
– **Zero Technical Barriers**: No need to run validator nodes or manage wallets
– **Competitive APY**: Earn up to 10% annually vs. ~7-9% on Cosmos Hub
– **Flexible Options**: Choose between locked terms or liquid staking
– **Daily Rewards**: Compounding interest paid every 24 hours
– **Integrated Security**: Binance’s $1B SAFU fund protects assets
## Important Considerations Before Farming
– **Market Volatility**: ATOM price fluctuations affect overall returns
– **Lock-Up Periods**: Early redemption penalties apply for fixed-term products
– **Tax Implications**: Staking rewards may be taxable income in your jurisdiction
– **APY Variability**: Rates adjust based on network demand and token supply
## Frequently Asked Questions (FAQ)
**Q: What’s the minimum ATOM required to start farming?**
A: Most products require just 0.1 ATOM ($1-$2), making it accessible to all users.
**Q: How often are rewards distributed?**
A: Rewards accrue daily and can be automatically restaked for compound growth.
**Q: Can I unstake ATOM immediately?**
A: Only with flexible products. Locked staking requires waiting for the term to expire (30-120 days).
**Q: Is Binance Earn farming safer than solo staking?**
A: Binance eliminates slashing risks and provides institutional-grade security, though decentralization purists may prefer direct Cosmos staking.
**Q: What happens when my staking term ends?**
A: Assets automatically return to your Spot Wallet. You must manually restake to continue earning.
Start growing your ATOM holdings today through Binance Earn’s user-friendly platform. With minimal effort and flexible options, you can tap into Cosmos network rewards while leveraging Binance’s robust security infrastructure. Always assess your risk tolerance and diversify your crypto investments.
