MAKING THE MOST OF YOUR CRYPTO

Say you buy a crypto, and you intend to hold it long term (more than 1 year), what do you do with that crypto while you are waiting?

Do you just leave it in your spot wallet, gathering dust?

Of course not! You invest it.

This is a big part of my trading strategy. But of course there are different options for holding, especially on Binance.

SIMPLE EARN:

The clue is in the name. You have the most flexibility with this option. You earn less interest, but if the price suddenly jumps and you want to realise a profit instantly, you can withdraw it at a moment’s notice and sell it on the market.

STAKING:

This is a more long term option. Binance has the feature where you can stake coins for 30 days to 120 days. You earn more interest here, but you cannot sell at a moment’s notice. You can still withdraw it to sell if you feel the moment is right, but you lose all your accumulated interest when you decide to do that.

LIQUID SWAP:

This is more risky. Hence I use it less so I know less about it. But you stake the pair (so BTC/USDT for example) and you earn based on this. But you’re also exposed to currency movements so you can end up withdrawing less than you put in.

There are also other methods of staking on Binance, but these are the three that I use most frequently.

There is also the matter that the interest accrued changes over time, depending on market conditions.

But also, you might be wondering, who pays this interest?

The answer? Leverage traders. When they borrow money to trade, they pay interest. This money comes from people who are earning/staking, and this interest is paid as a reward to the holders of those cryptocurrencies.

Thank you for reading and I hope this has been educational. Trade smart and do your own research!

#Write2Earn
#BTC
#SimpleEarn
#Staking
#LiquidSwap

Did you know?

Binance has a feature called "Binance Liquid Swap," which allows users to provide liquidity to various liquidity pools and earn rewards in return. Liquidity providers help facilitate smooth trading experiences and are incentivized through earned fees and liquidity pool rewards.

#Rewards #Liquidity #LiquidSwap