Binance Liquidity Pool | Binance Liquidity Swap | How it Works? - YouTube

hi there my name is taj and welcome to  cryptogems in today's video i'm gonna  

show you everything you need to know about  the binance liquidity pool and how it works  

um this video is not a financial advice this  video is for educational and entertainment  

purpose only so do your own research before  investing in any cryptocurrencies out there  

all the links will be mentioned in the description  box below so feel free to check them out um don't  

forget to hit the like comment and subscribe  to watch more of such cryptocurrency videos  

so let's get into it so basically with finance  you can be a liquidity provider by staking your  

assets for a certain pair or a pool and earn  transaction fees and flexible interest they  

say that this product or service is high risk and  may even result in losses the price of currency  

fluctuated really badly um the binance liquidity  pool is developed based on amm or automatic market  

maker principle and it is basically a system that  provides liquidity to the exchange um it operates  

in through automated trading and liquidity is  what makes the assets readily available and there  

are two types of trading in cryptocurrency the one  where it is managed by a company and the one where  

no one owns or basically decentralized uh system  and finance liquidity pool makes the trade go  

quickly because there are liquidity providers  that state their assets therefore the trades  

no longer need waiting because the funds  are on the pool already and are basically  

pre-funded by the liquidity providers so let's  say you did your research and you're like you know  

what i would like to become a liquidity provider  how do you do that so the first step is to create  

an account with finance so you need to put your  email address your password and the referral link  

that we have mentioned in the description box  below which is going to help you make some free  

uh money so please do that as well and then sign  up for an account do your verification and all of  

that and then add money into your account because  you must have a balance and i suggest that you  

kind of start with busd um so busd is a binance  stable coin which somewhat is similar to usd  

and if you have a balance already you can go to  binance liquid swap section so let me show you  

how to get there i logged into my dummy account  and let's say this is what your dashboard is  

gonna look like so you're gonna go under finance  and then you're gonna click uh click with swap  

and then over here you're going to see  all the combinations of cryptocurrencies  

uh in the pool that you can uh either liquidate  or swap it against uh you can also see the total  

yield uh yield basically means the return you're  gonna get um and there's also a breakdown of the  

fees and the bnb rewards that you're gonna  earn out of it um and then the reward coins  

are mentioned over here um and when you click  all pools you see that there are two ways to  

kind of go about it so there's stable pool and  innovation pool with stable it only means that  

it provides a more stable income than innovative  pools however the innovative pools are usually  

getting higher returns because higher returns are  usually associated with higher risk right so let's  

say for example you decided to go with bnb or  busd pair and then so what you're going to do is  

you're going to go and click swap so next over  here when you click swap you're going to enter  

the amount of busd you're gonna sell and swap it  against uh bnb uh meaning the number of tokens  

of bnb you're gonna buy and once you do that uh  you're gonna see the price the fees they charge  

and all of that and just click swap um i don't  really have a balance in my account because  

this is just for demonstration purpose only  but that's how you would usually go about it  

and then you can just click liquidity over here  and you can select the pool of your choice so  

we are doing b and b b usd you're going to enter  the amount and eventually you're going to see the  

current pool the total rate of return you have  to accept the terms of conditions and once you  

do that you can click add liquidity and you can  again do the same to redeem it and also one more  

thing that i want you to check out is the trezor  wallet which is a hardware wallet that you can  

use to store all your cryptocurrencies out there  um it's basically a safe way to ensure that you  

only have the access to the keys so please  check this out in the description box below  

um so that's pretty much it i hope you guys  enjoyed this quick tutorial and a little uh  

educational video about the finance liquidity swap  um thank you so much for watching don't forget to  

hit the like comment and subscribe and i shall see  you guys in my next one till then take care bye