*5 Fatal Mistakes in Binance Earn That Cost You Money*
Binance Earn is an excellent way to increase your cryptocurrencies without the need to trade actively. However, many beginners make costly mistakes that can lead to losing money or quickly discouraging them. Here are 5 common mistakes and how to avoid them:
*Mistake 1: Not Understanding the APR*
The APR (Annual Percentage Rate) is the annual interest rate you earn on your investments. Many think that if they invest $100 with an APR of 10%, they will earn $10 in a month. Wrong! The profit is annual, so you need to divide it by the days or months.
*Mistake 2: Investing Large Amounts Without Checking the APR Limit*
Some Binance Earn products have APR limits, meaning that the highest APR only applies up to a certain amount. If you exceed that limit, the excess will earn at a lower APR.
*Mistake 3: Confusing Flexible with Locked*
- Flexible*: You can withdraw your funds whenever you want.
- Locked*: Your funds remain immobilized until the term ends.
Many lock their cryptos and then are surprised because they cannot withdraw them before the time is up.
*Mistake 4: Not Activating Automatic Subscription*
If you do not activate the Auto-Subscribe option, your rewards will remain in the wallet without generating more profits. With this feature, your interests are automatically reinvested, allowing you to take advantage of compound interest.
*Mistake 5: Not Diversifying*
Some put all their capital into a single currency or product. It is better to spread your capital across different options, such as $USDT, $BTC, or $BNB, to reduce risks and take advantage of more opportunities.
*Practical Example*
If you invest $100 with an APR of 10%:
- *7 days*: Approximate profit of $0.19
- *30 days*: Approximate profit of $0.82
- *1 year*: Approximate profit of $10
*Conclusion*
Binance Earn is a useful tool to grow your cryptos, but only if you understand well how it works. Avoiding these mistakes will help you get the most out of it and earn without worries.
