📌 What is "Holding Cryptocurrency for Interest"?

"Holding Cryptocurrency for Interest" simply means depositing your idle cryptocurrency into financial products on centralized exchanges (CEX) like Binance to earn interest or rewards, similar to a "bank fixed deposit".

Binance offers:

Flexible Savings: Withdraw anytime, lower interest rate

Locked Savings/Staking: Lock for a certain number of days (e.g., 7 days, 30 days, 90 days), higher interest rate

Other advanced types (e.g., liquidity mining, dual currency investment): Greater variation in risk and return

✅ Advantages

1. Better than just holding: If you plan to hold long-term (HODL), you can at least earn some interest income.

2. Simple operation: No need to understand DeFi, Binance manages the liquidity or staking for you.

3. Sometimes there are extra activities: New coins listed or holiday events, the annualized rate may be higher than usual.

⚠️ Risks

1. Platform risk

Holding coins on an exchange carries the risk of being hacked or the platform closing down (although Binance is currently the largest and relatively safe, it cannot guarantee 100%).

The 2022 FTX incident is an example.

2. Liquidity risk

If you need to redeem a fixed investment before it matures, some products cannot be withdrawn early, or you may have to sacrifice part of the interest.

3. Fluctuating interest rates

Flexible interest rates often change, and the official rates can be adjusted at any time.

4. Invisible opportunity cost

If the price of the coin skyrockets, you cannot sell it while locked; if it crashes, interest often cannot compensate for the loss.

Create at least one original post in Binance Square, adding the topic tag #SoftStaking .