Cheats for lazy people to make money: Buy 10 BNB at the beginning of the year and earn money with compound interest on Binance. How much money can you earn by the end of the year?

Author: Frank, PANews

In the bull market, there seem to be tens of millions of ways to make money. Some people are looking for angles through memes, some are opening contracts all night, and some are working hard on airdrops. In addition to these methods, are there any ways to make profits without liver, gambling, and heartbeat? Some smart money is targeting platform activities such as Binance’s Launchpool or Megadrop to achieve the goal of compound interest. In this article, PANews will take stock of various activities on Binance in the past year and simulate how much profit you can get by the end of the year if you hold 10 BNB.

You can participate in 28 token airdrops throughout the year

Overall, BNB's income can be divided into three major parts. One is the value increase brought about by the increase in BNB's own tokens. The second is the reward income from participating in Launchpool activities. The third is Megadrop, HodlerAirdrop or other staking income.

We use January 1, 2024 as the starting date for cycle calculation. On January 1, the closing price of BNB was US$313.5. At that time, buying 10 BNB would require a total principal of approximately US$3,135. As of December 31, the price of BNB was approximately 702.3, an increase of approximately 124% from the beginning of the year. Based on this calculation, the income from holding BNB is approximately US$3,880.

In addition to BNB’s growth gains, Binance’s Launchpool is another type of activity that users participate in the most. Participating projects will reward some tokens to users who stake BNB or other stablecoins. As of December 31, the total amount locked on Binance Launchpool was approximately US$1.53 billion, and there were more than 6.1 million unique participants in history. In 2024, Binance launched a total of 21 Launchpool events.

According to PANews statistics, if users participate in the Launchpool activities of these projects from the beginning of the year, they will receive an average of about 1.6% of the token amount each time they participate in the activity. If we look at the highest price of the rewarded tokens, the average income for each participation is US$70. The total income from this part can reach up to US$1,481. The overall return rate after participating 21 times is approximately 47.2%. Among them, Altlayer’s activity income is the highest, about 5.93%, and the income amount reaches 173.3 US dollars. PIXEL’s income is second, with a yield of approximately 4.45% and an income of approximately US$156.

In addition to Launchpool, Binance also launched 2 Megadrops and 5 HodlerAirdrop events this year. If you participate in these 7 activities at the same time, the overall income amount will be approximately US$557, and the rate of return will be approximately 17.7%.

In summary, the highest comprehensive return of participating in Binance’s Launchpool, Megadrop and HodlerAirdrop is 65%. Combined with the currency price increase of 124%, the total return rate can reach 187%. Overall, participating in these activities can ultimately increase the principal amount of the investment from US$3,135 to US$9,087.

Compound interest practices yield higher returns

Of course, the above method may not be the solution to maximize returns. I believe many people believe that if we introduce the idea of ​​compound interest and sell the rewards or tokens obtained each time through participation and buy them as BNB, this will increase the number of BNB and have more principal to participate. activities, the overall benefits should become more.

First of all, this method of operation may have certain flaws. We can no longer use the highest price to calculate returns. In principle, using this method, you need to sell the tokens immediately after receiving them to avoid missing the next event. Therefore, the calculation used is based on the closing price of the first day after the listing of these event tokens.

According to this compound interest method, after participating in 21 Launchpool activities, the 10 BNB held in hand can eventually be turned into 12.39. The number of BNB tokens increased by 2.39. Calculated at US$702.3, the income from this part was approximately US$1,678. Including the profit from Megadrop and HodlerAirdrop activities of approximately 0.62 BNB, the final number of BNB can reach 13. If you follow this operation method of selling event tokens every time and buying them into BNB. The final amount was approximately $9,136.

This income result is higher than simply participating in the event and selling at the highest point. The biggest advantage is that this method of operation is closer to practice. After all, no one can sell at the highest point every time. Compared with normal participation in activities, where the reward tokens are sold directly without being exchanged for BNB, the final actual total assets are approximately US$8,490. In comparison, the compound interest method is still more advantageous.

The value increased to 2.7 times in one year, exceeding 70% of the token

performance

Of course, no matter which operation method is used, in the end we use 10 BNB principals of US$3,315. After one year of practical operation, the total amount that can be converted into reaches a range, that is, US$8,490 to US$9,136. The overall wealth change is approximately 2.56 times to 2.75 times. Of course, the biggest source of revenue is still the appreciation of BNB, followed by Launchpool activities.

Comparing the maximum gains and losses of the 182 spot and contract trading pairs listed on the Binance exchange this year, this return exceeded the performance of 73.6% of the tokens in the sample. On the surface, such a rate of return may not be considered a big deal in the face of the tens of thousands of multiples that are common in the crypto world. But for users who have large funds, pursue relatively stable returns, or are keen on wool harvesting but are unable to participate in wooling. The final results of this type of operation method seem to be quite impressive. First, from the perspective of input-output ratio, whether it is airdrops or MEME speculation, a lot of time and expenses are always spent on the chain, and it is relatively easier to participate in such activities. Secondly, the high volatility of MEME coins and the uncertainty of airdrops will significantly reduce the investment winning rate, and the smaller the volatility, the market will tend to have relatively stable returns. Therefore, this kind of wool-gathering activity seems to have the effect of gathering sand into a tower.

However, any investment strategy should undergo a large amount of data analysis and fundamental judgment before actual operation. The above content is for reference only and is not investment advice.