Recently, USUAL staking has attracted a lot of attention with an annualized rate of return (APY) of up to 22037%. However, for retail investors, the risks and actual operating costs hidden behind this high return are worth pondering. Here are my thoughts on the staking of USUAL and the comparison with Binance Financial Management:
USUAL staking income features
1. Extremely high rate of return
The claimed annualized rate of return is as high as 22037% (daily rate of return is about 1.49%). High returns are attractive, but the rate of return is not fixed and will fluctuate with the number of pledgers and the total amount.
2. Complex staking process
USUAL needs to be exchanged for USUALX or USD0 for staking, and handling fees may be incurred during this process. If the lock-up period is not met and the currency is withdrawn in advance, a 10% "liquidated penalty" must be paid.
3. High volatility risk
High returns are often accompanied by high risks, and the value of pledged assets may be greatly affected by market fluctuations. Especially for retail investors, the stability of returns is questionable.
Features of Binance Financial Management
1. Diverse product selection
USDT current account investment: annualized rate of return is about 12%, deposit and withdrawal are available at any time, with high flexibility.
DOT fixed-term product: The highest annualized rate of return is 18.9%, suitable for investors with long-term lock-up needs.
Smart arbitrage service: During the promotion period, the annualized return of USDT can reach up to 17.18%, with low risk.
2. Strong stability
Although the yield of Binance platform is not as exaggerated as USUAL, it is more stable and suitable for investors with lower risk tolerance.
Advice for retail investors
1. Rationally assess your risk tolerance
If you can bear high risks and have the ability to monitor market dynamics at any time, you can consider trying to participate in USUAL staking with a small amount of funds, but do not invest most of your assets. If you pay more attention to the stable appreciation of assets, Binance's financial products may be a better choice.
2. Diversify your investments to reduce risk
Don’t concentrate all your funds on one product. You can use part of your funds to try USUAL staking, and use the other part to choose financial products on stable platforms such as Binance to diversify risks.
3. Calculate actual benefits and costs
Before deciding to pledge, carefully calculate the costs such as exchange fees, early unlocking penalties, etc. For retail investors with smaller funds, these fees may eat up most of the gains.
4. Pay attention to changes in earnings and market dynamics
USUAL staking returns change quickly, and retail investors should pay regular attention to adjustments to its yields and market policies to avoid unnecessary losses due to information lags.
Summarize
For retail investors, high returns often mean high risks, so they need to be more cautious when choosing financial products. It is recommended that you plan your funds rationally based on your own economic situation and investment goals, give priority to platforms with high security and stable returns, and avoid blindly pursuing high returns.
I hope the above analysis can provide a reference for your investment decisions!
