A personal way I am using to optimize profits on Binance.
Surely many of you know this feature, this article is for those who do not know.
First, in my investment portfolio, I will hold the TOP coins with strong growth potential in the future. For example: BTC, ETH, $BNB , ... If I hold these coins, the ARP earn will be extremely low, not worth the investment.
The most optimal solution I will do is as follows:
First, I will use those assets as collateral, borrow out Stablecoins or coins with less volatile prices and lower interest. For example: $ETH
Then I will use the borrowed coins sold to buy coins with high APR, then Stake those coins to earn the difference in interest. That's basically how I do it!
This method also has risks:
1. If the coin you use as collateral fluctuates strongly, the possibility of liquidation is quite high -> Solution: Borrow an amount much less than the capital.
2. The coin you borrow to sell for Stablecoin fluctuates strongly, at this time you will lose more money to pay -> Solution: You can replace it by borrowing Stablecoin instead of TOPcoin.
Wish you success and earn a lot of money!
(This content is written in Vietnamese, if you are from another country, if the translation is difficult to understand, please comment below so I can explain!)