Is EARN worth it?

Many people wonder if it is worth leaving a token in EARN after purchase.

Is EARN on Binance worth it? Many people question whether it's advisable to leave a token in EARN after purchasing it. In most cases, the answer is no. Let's delve into the reason.

Binance employs a mechanism where, upon transferring a token to EARN, it becomes inaccessible for trading until it's redeemed. This implies that the investor must choose between acquiring passive income or retaining the ability to place buy and sell orders. But which strategy proves more sensible?

Two common approaches among traders are:

1. Follow the market and react as necessary - The aim is to remain positioned while the market trends favorably and exit quickly in the event of a decline. In this scenario, there's no fixed sell order for profit, as the decision will be based on market behavior. However, to mitigate losses, the trader typically sets up a stop loss.

2. Set a target and a loss limit from the beginning - In this case, the investor already knows precisely how much they're willing to lose and what the profit goal is. Consequently, they program both the sell order for the gain and the stop loss simultaneously.

Both strategies require launching orders in the market, which becomes impossible if the asset is in EARN.

By electing to leave a token in EARN, the trader forfeits the capacity to safeguard their capital with a stop loss. In most instances, the income provided by EARN does not offset any loss resulting from the asset's devaluation.

A seasoned trader always prioritizes the preservation of capital, as profit is a byproduct of sound risk management.

Nevertheless, there's a situation where EARN can be beneficial: when the goal is HODL (to hold the asset for the long term). If the investor believes in the appreciation potential and has no intention of selling, regardless of price swings, then EARN can be a valuable avenue for generating additional income.

To date, the asset with the highest yield in EARN was $KAITO, at over 22%, while the lowest was $XRP, at 0.65%. The $BTTC token also stands out as a noteworthy option.