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Is earning from cryptocurrencies in the spot wallet or financing better?
Spot Wallet:
*Advantages:
- You actually own the cryptocurrencies.
- Lower risk than trading with leverage.
- Suitable for medium to long-term storage and investment.
- You can sell or transfer at any time easily.
* Disadvantages:
- Profits are usually slower, especially if there are no major market fluctuations.
- Requires time and patience or good analysis to buy at a good price and sell at a higher price.
- Financing (such as lending or Binance Earn):
* Advantages:
- Semi-fixed income from interest (APY), even without market movement.
- Useful during a bear market or if you do not want to speculate.
- Available in different forms: flexible or locked.
* Disadvantages:
- Limited returns.
- Sometimes your funds are frozen for a certain period.
- Some cryptocurrencies carry higher risk depending on the project or liquidity level.