Lazy Person's Earning Secret: Buy 10 BNB at the beginning of the year, use compound interest on Binance to earn money, how much can you make by the end of the year?

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PANews
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4 days ago

Author: Frank, PANews

In a bull market, it seems there are countless ways to make money. Some people chase angles with MEME coins, others stay up all night trading contracts, and some work hard to earn airdrops. Besides these methods, is there a way to profit without grinding, gambling, or feeling anxious? Some smart money has targeted Binance's Launchpool or Megadrop activities to achieve compound interest. In this article, PANews will review various activities on Binance over the past year and simulate how much profit can be made by holding 10 BNB until the end of the year.

Participate in 28 Token Launch Airdrops Throughout the Year

Overall, the returns from BNB can be divided into three main parts: first, the value increase from the appreciation of BNB itself; second, the reward earnings from participating in Launchpool activities; and third, earnings from Megadrop, Hodler Airdrop, or other staking rewards.

We take January 1, 2024, as the starting date for our calculations. On January 1, the closing price of BNB was $313.5. At that time, buying 10 BNB required a total capital of about $3135. By December 31, the price of BNB was approximately $702.3, an increase of about 124% since the beginning of the year. Based on this, the profit from holding BNB is about $3880.

In addition to the growth profit from BNB, Binance's Launchpool is another type of activity with high user participation. Projects participating in the activity will reward users who stake BNB or other stablecoins with a portion of their tokens. As of December 31, the total locked amount on Binance Launchpool was about $1.53 billion, with over 6.1 million unique participants historically. In 2024, Binance launched a total of 21 Launchpool activities.

Lazy Profit Secrets: Buy 10 BNB at the Beginning of the Year, Compound Interest on Binance, How Much Can You Earn by Year-End

According to PANews statistics, if users participated in these Launchpool activities from the beginning of the year, they could earn an average of about 1.6% in token rewards per activity. If we look at the highest price of the rewarded tokens, the average income per participation could be around $70. In total, this part of the profit could reach up to $1481. The overall return rate from participating in 21 activities is about 47.2%. Among them, the activity with Altlayer had the highest return, approximately 5.93%, with a profit amount of $173.3. The return from PIXEL was second, with a return rate of about 4.45% and a profit amount of about $156.

In addition to Launchpool, Binance also launched 2 Megadrop and 5 Hodler Airdrop activities this year. If one participated in all 7 activities, the total income would be about $557, with a return rate of about 17.7%.

In summary, the highest combined return from participating in Binance's Launchpool, Megadrop, and Hodler Airdrop is 65%. Combined with the BNB price increase of 124%, the total return rate could reach 187%. Overall, participating in these activities could ultimately increase the initial investment of $3135 to $9087.

Higher Returns from Compound Interest Operations

Of course, the above methods may not be the best for maximizing returns. Many believe that if we introduce a compound interest mindset, selling the rewards or tokens earned from participation and buying more BNB, we could increase the number of BNB held, thus having more capital to participate in activities, leading to greater overall returns.

Firstly, this operational method may have certain flaws, as we cannot calculate returns based on the highest price anymore. In principle, using this method requires selling the tokens immediately after receiving them to avoid missing the next activity. Therefore, the calculations are based on the closing price on the first day after the tokens are launched.

Using this compound interest method, after participating in 21 Launchpool activities, the 10 BNB held could ultimately increase to 12.39 BNB. The increase of 2.39 BNB, calculated at $702.3, would yield about $1678. Adding the profit from Megadrop and Hodler Airdrop activities of about 0.62 BNB, the final BNB count could reach 13. If we follow this method of selling the activity tokens and buying BNB, the final amount would be about $9136.

Lazy Profit Secrets: Buy 10 BNB at the Beginning of the Year, Compound Interest on Binance, How Much Can You Earn by Year-End

This profit result is higher than simply participating in activities and selling at the highest point, and the biggest advantage is that this operational method is more practical, as no one can sell at the highest point every time. Compared to normal participation in activities, where the reward tokens are directly sold without converting to BNB, the final actual asset total would be about $8490. In contrast, the compound interest method still has an advantage.

Value Increased to 2.7 Times in a Year, Outperforming Over 70% of Tokens

Of course, regardless of the operational method, the final total amount we can achieve with the initial capital of 10 BNB, $3315, after a year of practical operations, falls within a range of approximately $8490 to $9136. The overall wealth change is about 2.56 to 2.75 times. Of course, the largest source of profit remains the appreciation of BNB, followed by the Launchpool activities.

Comparing the maximum price fluctuations of the 182 spot and contract trading pairs listed on Binance this year, this profit exceeds the performance of 73.6% of the tokens in the sample. On the surface, such a return rate may not seem significant in the face of the thousands of times returns often seen in the crypto world. However, for users with larger capital scales, seeking relatively stable returns, or those keen on earning rewards but unable to participate in airdrops, this type of operational method seems to yield considerable results. Firstly, from the input-output ratio perspective, whether it’s earning airdrops or trading MEME coins, the time and costs spent on-chain are always considerable, while participating in such activities is relatively easier. Secondly, the high volatility of MEME coins and the uncertainty of earning airdrops significantly reduce investment success rates, while markets with lower volatility tend to have more stable returns. Therefore, these types of reward-earning activities seem to have a sand pile effect.

However, any investment strategy should undergo extensive data analysis and fundamental judgment before practical operation. The above content is for reference only and does not constitute investment advice.

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