1Staking - Minimum risk and profit
BingX offers staking for investors to secure the least risky returns. The annualized staking yields often outperform bank fixed deposit rates by approximately 1%. Certain DeFi platforms offers stakes that are similar to the bank's fixed-term interest rate. Although the number may appear enticing in the short term, it's important to note that the long-term staking lacks the compounding effect. This is precisely why staking predominantly relies on stablecoins like USDT or USDC to safeguard investors' assets.
2Copy Trading - Medium risk and high profit
In Copy Trading, traders place orders while copiers simultaneously copy the traders' orders with the margin that is customizable. The reason that Copy Trading carries moderate risk is that while it doesn't require copiers to possess any trading expertise, they must diligently evaluate a trader's transaction history and independently decide whether to replicate the trader's trading strategies. The risk level of traders increases as their profit grows and the assets they hold decrease. Thus, it's advisable to select traders with assets exceeding $10,000 and per-order limits under $100. Larger assets indicate higher risk tolerance, and a per-order cap of merely 1% of the total position means they can ensure long-term profitability with a win rate of above 90% in high-frequency trading. On the contrary, traders with only $50 assets signifies a much lower risk tolerance. Such traders are inclined to adopt bolder investment approaches but could lose it all in a single trade and bail.
