Convert BETH to AUD

Beacon ETH (BETH) is a tokenised representation of staked Ether on the Ethereum 2.0 network, primarily issued by Binance to simplify the staking process for users.

Key takeaways

• BETH is a liquid staking token that represents ETH staked on the Ethereum Beacon Chain.
• It is issued at a 1:1 ratio when users stake their ETH through Binance's staking services.
• BETH holders earn staking rewards, which are distributed daily, mirroring the rewards from the underlying staked ETH.
• The token provides liquidity for staked assets, allowing users to trade or use BETH in various DeFi applications while their ETH remains locked.
• BETH can be traded on supported exchanges and is redeemable for ETH after the Ethereum network's unlocking periods.

What is Beacon ETH? Key Specifications & Tokenomics

Beacon ETH (BETH) is a utility token that acts as a receipt or proof of stake for users who have participated in Ethereum staking via Binance's platform.

Who created Beacon ETH (BETH)?

Beacon ETH was created and is issued by Binance, the world's largest cryptocurrency exchange. It was introduced as part of Binance's staking services to facilitate user participation in Ethereum's transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The token is not the product of a decentralised protocol like Lido's stETH; instead, it is a centralised solution managed by Binance. The exchange handles the technical complexities of running validator nodes on the Ethereum Beacon Chain, allowing users to stake any amount of ETH without needing the required 32 ETH or technical expertise. Binance remains responsible for the custody of the staked ETH and the distribution of corresponding BETH tokens and rewards to users.

How does Beacon ETH (BETH) work?

BETH functions as a liquid staking derivative. The process begins when a user stakes their ETH on Binance's platform. In return, Binance mints and credits an equivalent amount of BETH tokens to the user's account at a 1:1 ratio. These BETH tokens represent the user's claim on the underlying staked ETH plus any accrued staking rewards. The mechanics involve:

• Staking Rewards: The ETH staked by Binance on behalf of users earns rewards from the Ethereum network. These rewards are calculated and distributed daily to users' accounts in the form of additional BETH tokens.
• Liquidity Provision: Unlike native staking where ETH is locked and illiquid, BETH can be traded on the spot market or used within the Binance ecosystem and other supported DeFi protocols, providing flexibility.
• Redemption: Users can convert their BETH back into ETH through Binance's platform. This process is subject to the unlocking periods dictated by the Ethereum network's withdrawal protocols.

What makes Beacon ETH (BETH) unique and valuable?

BETH's primary value proposition lies in its simplicity and accessibility provided by a major exchange like Binance.

• Lower Barrier to Entry: It removes the technical hurdles and the high capital requirement (32 ETH) for solo staking, making Ethereum staking accessible to retail investors.
• Liquidity for Staked Assets: It solves the liquidity problem inherent in traditional staking. Users are not forced to choose between earning rewards and accessing their capital, as BETH can be sold or used elsewhere.
• Integrated Ecosystem: Being a Binance product, BETH benefits from deep integration within one of the largest crypto ecosystems. It can be easily traded, used as collateral for loans, or participated in other Binance financial products.
• Trust and Custody: For users who prefer not to self-custody or run validator nodes, staking through a reputable entity like Binance offers a perceived layer of security and convenience, albeit with different trust assumptions than decentralised staking protocols.

What is Beacon ETH (BETH) used for?

The BETH token has several key use cases within the crypto economy:

• Proof of Stake: Its primary function is to serve as a verifiable certificate that the holder has staked ETH on the Beacon Chain.
• Earning Staking Rewards: Holding BETH entitles the holder to receive daily staking rewards, providing a passive income stream.
• Trading and Speculation: BETH can be traded against other cryptocurrencies like USDT on spot markets, allowing users to speculate on its price or exit their staked position before the ETH is unlocked.
• DeFi Collateral: On supported platforms, BETH can be used as collateral to borrow other assets, enabling more complex financial strategies without unstaking the original ETH.
• Participation in Binance Services: It can be used within various Binance products, such as Binance Earn, for additional yield opportunities.

How Is the Beacon ETH (BETH) Ecosystem Developing?

The BETH ecosystem is intrinsically linked to Binance's expansion and the broader adoption of Ethereum staking.

• Exchange Listings: BETH is primarily listed on Binance but has also been listed on other exchanges, increasing its accessibility and liquidity.
• DeFi Integration: While its use in decentralised finance is more limited compared to tokens like stETH, BETH is supported by some DeFi protocols on BSC and Ethereum for lending, borrowing, or liquidity provision.
• Product Development: Binance continues to develop new financial products and services that incorporate BETH, enhancing its utility within their ecosystem.
• Market Dynamics: The value and trading volume of BETH are influenced by Ethereum's staking rewards rate, the overall demand for liquid staking tokens, and market sentiment towards Binance.

How to mine Beacon ETH (BETH)?

BETH cannot be mined in the traditional Proof-of-Work sense. It is exclusively minted through the staking process on Binance. The only way to "earn" new BETH is by:

1. Staking ETH directly on the Binance platform, which results in receiving an equivalent amount of BETH.
2. Earning daily staking rewards, which are paid out in additional BETH tokens. There is no alternative method, such as computational mining or liquidity mining, to acquire newly minted BETH outside of Binance's staking service.

How to keep your BETH Coin safe?

Securing your BETH involves securing the private keys to the wallet where it is stored.

• Exchange Custody: The simplest method for casual holders is to keep BETH on the Binance exchange, leveraging its security infrastructure. However, this carries exchange counterparty risk.
• Hardware Wallets: For significant holdings, transfer BETH to a non-custodial hardware wallet like Ledger or Trezor. Since BETH exists as a BEP-20 token on BSC or an ERC-20 token on Ethereum, ensure your hardware wallet supports the relevant network.
• Software Wallets: Reputable software wallets like MetaMask (for Ethereum) or Trust Wallet (for BSC) are good options for active use. Always download wallets from official sources, safeguard your seed phrase offline, and never share it with anyone.
• Security Practices: Enable all available security features (2FA, withdrawal whitelists) on your exchange account. Be vigilant against phishing attempts and only interact with known, official contract addresses when moving tokens.

How to buy BETH Coin?

BETH is a popular cryptocurrency listed on many exchanges. However, it is recommended to trade on a major platform like BTCC exchange for higher liquidity and better customer support.

1. Register a BTCC Account: Sign up using your email or mobile number and complete the KYC verification to unlock more features and benefits of the platform.
2. Deposit Funds: Deposit fiat currency (via bank transfer, card, or third-party payment) or transfer USDT from an external wallet into your BTCC account. You can follow this guide.
3. Start Trading: Go to the trading page and search for the spot trading pair BETH/USDT or the perpetual contract BETH/USDT.
4. Place an Order: Enter the amount of BETH you wish to purchase and submit the order. For contract trading, you can also choose to go short (sell) and adjust the leverage multiplier according to your strategy and risk tolerance.
5. Confirm Your Purchase: For spot purchases, check your personal account to see if the coins have arrived. For contract trades, check the trading page to see if your order was filled successfully.