With little capital, you want to make money but are struggling between two options: holding spot or trading futures?
This is a method that I have been using where I hold spot coins while adding additional working capital to trade futures after more than 2 weeks of practical experience:
1️⃣ Choose a coin that can be staked to earn interest: I chose $SOL with an APR stake of about 5.4%/year, stake directly on Binance > you will receive the corresponding BNSOL coin.
2️⃣ Use BNSOL as collateral to borrow USDC with an LTV (loan-to-value ratio) of 70~80%, and an interest rate of 4%/year (I haven't found anything cheaper than depositing yet 🥰)
🤔 Why did I choose USDC? Because it has no transaction fees for limit orders. And with futures on USDC, the exchange only lists popular coin pairs SOL, LINK, BTC, ETH, BNB, etc. … helping you to avoid getting addicted to placing orders and/or limiting the temptation to waste money on trash meme coins, which can wipe out all profits 🤭
🤤 After 2 weeks of practical experience, I have used profits from Futures to buy an additional 2 SOL to stake and withdraw a little back to VND.
P/S:
+ When not placing orders, you should pay off/reduce the loan balance (lower the liquidation price of the collateral). Avoid the situation of going to sleep and getting liquidated due to price drops on BNSOL (ah, then it's a hassle to buy back).
+ Ultimately, you still have to find an effective capital management method because futures… as you have experienced, is no different from gambling 🫰
This is a method that I have been using where I hold spot coins while adding additional working capital to trade futures after more than 2 weeks of practical experience:
1️⃣ Choose a coin that can be staked to earn interest: I chose $SOL with an APR stake of about 5.4%/year, stake directly on Binance > you will receive the corresponding BNSOL coin.
2️⃣ Use BNSOL as collateral to borrow USDC with an LTV (loan-to-value ratio) of 70~80%, and an interest rate of 4%/year (I haven't found anything cheaper than depositing yet 🥰)
🤔 Why did I choose USDC? Because it has no transaction fees for limit orders. And with futures on USDC, the exchange only lists popular coin pairs SOL, LINK, BTC, ETH, BNB, etc. … helping you to avoid getting addicted to placing orders and/or limiting the temptation to waste money on trash meme coins, which can wipe out all profits 🤭
🤤 After 2 weeks of practical experience, I have used profits from Futures to buy an additional 2 SOL to stake and withdraw a little back to VND.
P/S:
+ When not placing orders, you should pay off/reduce the loan balance (lower the liquidation price of the collateral). Avoid the situation of going to sleep and getting liquidated due to price drops on BNSOL (ah, then it's a hassle to buy back).
+ Ultimately, you still have to find an effective capital management method because futures… as you have experienced, is no different from gambling 🫰
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SOL
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