If you have accumulated some BTC, ETH, or USDT, watching the market fluctuate, but are hesitant to trade frequently or engage in contracts, yet don't want them to just 'sleep' in your wallet? This is probably me, and it might be the state many friends who are just starting to engage with cryptocurrencies find themselves in.
Later, I discovered a pretty practical feature hidden in Binance—Binance Financial Management. In simple terms, it allows you to 'store' your temporarily unused cryptocurrency assets and let them 'generate' some 'offspring' (returns). After using it for a while, I feel that for ordinary users like me, who seek stability and don't want to bother, it's indeed a good choice. Here, I will share my genuine feelings and usage methods.
My choice: Start trying from 'Principal Protection.'
At first, I didn't understand much and just saw several ways to play in Binance Financial Management:
1. Fixed-term Financial Management
This is somewhat similar to a bank's fixed deposit. Choose the currency (like USDT, BNB, etc.) and the deposit term (like 7 days, 30 days, 90 days), lock the currency for a period, and at maturity, you get back the principal and interest.
The advantage is peace of mind, with relatively stable returns, and operating it is similar to buying a financial product in a banking app.
The downside is that you cannot withdraw during the lock-up period; you have to be patient.
My operation: Find 'Financial Management' or 'Binance Earn' in the app → Select 'Fixed-term' → Choose a preferred currency and term → Confirm the deposit. At maturity, the principal and interest are automatically returned, quite convenient.
Who is it suitable for: Friends who have some money they definitely won't need in the short term and want to earn stable interest.
2. Flexible Financial Management
This is more like a 'current account.' You can deposit and withdraw money at any time, with interest calculated daily. Of course, the returns are usually lower than fixed terms (depending on the currency). When I need liquid funds, I put some in, like wanting to keep USDT available for buying the dip or paying for something, but I don’t want it to sit completely idle; putting it here allows me to earn a little.
My operation: Same on the Earn page → Select 'Flexible' → Find the corresponding currency → Deposit. When you want to withdraw, just click 'Redeem,' and it will be basically instant.
Who is it suitable for: Those who require high liquidity, might need money at any time, but don't want to miss out on meager returns.
Binance Financial Management has some advanced options, which I have also briefly researched.
3. Dual Currency Investment:
This method is a bit more complex, as the returns are linked to the prices of the two currencies you choose (like BTC and USDT). Returns may be higher (significantly better than fixed-term), but what you get back at maturity may not necessarily be the currency you deposited; it could also be the linked currency, depending on the market price at maturity. If you're lucky and correctly judge the direction, the returns can be substantial, but the risks are naturally greater. I’ve only tried it on a small scale once and needed some time to understand the rules.
4. DeFi Staking/Mining (DeFi Staking)
The potential for returns is significant, sometimes seeing 10% or even higher (specific projects vary greatly) because it connects to income opportunities in the decentralized world. But the risks are also noticeably higher, including smart contract risks, risks inherent in the projects, etc. Binance essentially screens and packages some products for you, making it much more convenient than fumbling around in the DeFi world, but this does not mean there are no risks. Personally, I am currently quite cautious and only allocate a small portion of my funds to try these high-yield options; I am still in the learning and observation phase.
As a user, several aspects of Binance Financial Management attract me:
The platform is fundamentally reliable: While Binance cannot guarantee that all products are 100% safe (as there are risks in the crypto field), its scale, technology, and security investments are industry-leading, making it much more reassuring than putting your coins on some unknown small platforms. Especially for fixed-term financial management, which states that the principal is protected (referring to the number of locked assets being protected, while the risk of price fluctuations is another issue), it feels more reassuring, and the universe's number one isn't just for show.
Super easy to operate: The app is very user-friendly. Finding the Earn entrance, selecting products, depositing, checking returns, redeeming, everything is clear and straightforward, and it can be completed in minutes, extremely friendly for beginners without the need to study complex on-chain operations.
A wide selection: From conservative to aggressive, there’s always an option suitable for you, and it's easy to mix and match to diversify risks.
My suggestion is to start with a small amount: Don't go all-in right away. Start with a few hundred or a few thousand USDT (or equivalent in other currencies) to test the waters, get familiar with the process and feel.
Start cautiously: I began with USDT for fixed-term financial management, which is simple and low-risk. Once familiar, you can try flexible financial management. For dual currency and DeFi, it’s advisable to read the rules carefully and understand them before deciding how much to invest. Understand the rules and read the liquidation document: Each product has detailed explanations, such as annualized returns (APR/APY), lock-up periods, how to redeem, whether there are early redemption penalties, and any special risks (e.g., changes in settlement currency for dual currency, specific risks for DeFi, etc.). Make sure to read carefully before confirming!
Maintain a calm mindset: Don't expect to get rich overnight with this. Its value lies in making your idle assets work and generating some stable (relative) cash flow. Especially with high-yield options, high returns come with high risks. One final thought: Binance Financial Management is a practical tool for managing the temporarily idle cryptocurrency assets in my hands. Especially when the market is unclear or I don't want to operate frequently, it helps me earn some interest steadily, reducing the anxiety of being completely in cash and slightly increasing asset utilization. If you also have cryptocurrency assets 'lying flat' in your wallet and don't want to take on too much trading risk, consider opening the Binance App and browsing the 'Financial Management' (or Binance Earn) section, starting with small fixed terms or flexible financial management.