LOSSES! 😭

Just holding coins?

There’s a way even cooler. 👀

While doing DCA, the assets we hold turn out to be something we can learn and earn rewards through Binance Earn.

So it’s not just buy → hold → check the chart → panic → open the chart again. 🗿

But before you go straight into it, there’s one important thing:

Earn isn’t a free-money button.

It’s actually interesting right here.

If so far we’ve known DCA as a way to buy assets regularly, what if the assets we also plan to hold are managed through the Earn product that’s available?

So that’s where I start getting interested in learning about Binance Earn.

So what is Binance Earn?

In simple terms, Binance Earn offers various products that allow users to earn rewards from certain crypto assets, according to each product’s mechanism and terms.

One of the products that’s quite interesting to learn about is Simple Earn.

Imagine we do have an asset we want to hold, and there’s no plan to sell it in the near future. Instead of immediately thinking that the asset can only sit in the balance, we can check whether there’s a suitable Simple Earn product available.

But don’t misunderstand.

I don’t see this as a way to make an asset definitely increase, or as a replacement for an investment strategy. Rewards still come with conditions, while the crypto asset price itself can go up and down.

So reward and price risk are two different things.

“So how do you use Binance Earn?”

First, we need to go to the Earn section in the Binance app.

There are various products there that you can learn about. We can see the available assets, reward estimates, and the product terms.

When you find a Simple Earn product, don’t immediately look at the APR and then press the subscribe button.

Read the details first.

• Is the product flexible?

• Is there a specific period?

• What is the reward mechanism like?

• What are the withdrawal or redemption rules?

• Is there a maximum limit?

The most important thing is:

Does that asset really want us to keep it?

In my opinion, the last question is often overlooked.

Don’t end up buying an asset just because its Earn reward looks attractive.

If from the start we weren’t interested in having that asset, a reward number that looks high isn’t necessarily a sufficient reason to buy it.

Don’t get trapped by APR numbers.

This is the part I think is mandatory to understand.

When you look at the Earn page, the APR number is indeed easy to catch your attention.

For example, if there’s a product with a higher reward, our eyes will automatically be drawn to it.

But APR isn’t the only consideration.

Crypto assets have volatility. The value of an asset can change much more than the rewards we receive.

For example, an asset provides rewards, but then the asset’s price drops. Overall, the value of our holdings can still go down.

That’s why, in my opinion, Binance Earn is better seen as an asset management tool, not an automatic money-making machine.

So what does that have to do with DCA?

Well, this is the part that I find quite interesting.

DCA is basically an approach of buying an asset periodically instead of trying to guess the single best price.

If someone already has a DCA plan for a certain asset, they still need to decide for themselves whether that asset is suitable to hold and whether there’s a compatible Earn product.

So the concept is not:

“DCA + Earn = guaranteed profit.”

Not like that.

More precisely:

“If I’ve already decided to own and hold an asset, are there any Earn products that fit that asset?”

This question makes a lot more sense.

The hidden gem isn’t a high APR

In my opinion, this is the part that’s often missed.

The hidden gem of Binance Earn doesn’t mean we have to look for a product with the biggest reward number.

The hidden gem is the opportunity to think again about how the asset we already have is managed.

• We don’t have to keep trading.

• We don’t have to keep opening charts.

• We don’t have to keep looking for a new entry.

If there is indeed an asset you want to hold, you can learn about the available management options and tailor them to each person’s needs.

But always remember: each product has terms and risks that need to be understood before using it.

My conclusion

Back then, we might have thought:

“I have coins → I hold.”

Now the question can be phrased a little differently:

“I have coins and I really want to hold them. So what options are available to manage them?”

That’s where Binance Earn starts to become interesting to learn.

Not because the word “Earn,” which sounds like free money.

Not also because the APR looks big.

But because we start learning that owning an asset and managing an asset are two different things.

If you want to try, don’t start from the question:

“The biggest reward— which one?”

Start from:

“What assets do I have, why do I have them, and is this product truly in line with my plan?”

The longer I learn about assets, the more it feels like a good financial decision isn’t always about chasing the biggest numbers.

Sometimes it’s actually about understanding what we’re doing before pressing the button.

And if after reading this you realize that the asset you’ve only been holding all this time actually has other management options...

Congratulations. Now you’ve started #PintarPakaiBinanceEarn. 🗿

#PintarPakaiBinanceEarn

#BinanceEarn

#SimpleEarn