I was curious to see how Binance EARN would work for me. EARN allows you to put your tokens to work by earning passive income, but I quickly realized that moving assets into EARN comes with some trade-offs. Specifically, once your token is in EARN, it becomes unavailable for trading until you redeem it. This means that I couldn’t react quickly to market changes or execute buy and sell orders as I usually do.
At first, I thought this wouldn’t be an issue. After all, Binance offers attractive returns on certain tokens like $KAITO, which I saw yielding more than 22%. But then the reality hit: I was no longer able to adjust my positions to market fluctuations or protect my capital with stop losses. This restriction made me rethink my strategy.
As a trader, my main goal is to preserve capital while looking for opportunities to profit. However, with the EARN feature locking my tokens away, I wasn’t able to follow the market and adjust my positions in response to price swings. Instead, I had to choose between maintaining my tokens in EARN for passive income or staying nimble for market reactions, such as entering and exiting positions quickly.
I also tried the alternative approach: setting a target profit and loss limit from the beginning. While this works well for some, it felt like I couldn’t really take advantage of market opportunities if I had my tokens in EARN. The income from EARN, although decent, didn’t make up for the potential losses I might experience if I couldn’t act fast when the market moved against me.
However, one thing became clear over the course of the month: EARN is not necessarily a bad option for long-term HODLers (Hold On for Dear Life). If you believe in the long-term growth potential of an asset and you have no immediate plans to sell, EARN could offer a way to generate some extra income while you wait for your asset to appreciate.
For example, I noticed that the $XRP token only offered a yield of 0.65%, which didn’t seem worth locking it up in EARN for a month. On the other hand, $BTTC caught my attention with its solid returns, making me think about a more strategic approach if I were looking to hold it long-term.
In the end, my experience with Binance EARN showed me that it can be a useful tool for passive income, but it comes with the significant trade-off of limiting your ability to react to market conditions. If you're a long-term investor who believes in holding and you’re not concerned with short-term price movements, EARN can work for you. But if you’re more of a market-driven trader, EARN might not be the best choice for your strategy.