A good way or a very bad practice

[Dareo]

-snip-

Exactly it does not make any sense to take such a big risk for a profit of $2.7 a month on just $500. Keeping money locked in an exchange is the same as shooting yourself in the foot. So I will say leaving funds in a centralized exchange for the sake of a small interest is nothing but foolishness. However we know there are risks in banks too but there, at least there is a government insurance guarantee. That means if the bank got bankrupt you will have a chance to get some money from government. But if a crypto exchange suddenly goes bankrupt or runs away with a scam, you cannot get a single penny back.  So yeah it is wiser to keep your funds safe in a cold wallet than to lock money in a centralized exchange in the hope of low profits.

[alastantiger]

There are things to this that people will likely ignore. First is the yield is on what coin? I don't see it on the Bitcoin coin. It will be on USDC and secondly how are they able to generate such yield to pay. That's where people will overlook. Someone promises high return, you should ask them where are they risking your funds to get that reward. Ignore this and it's your money that goes down the drain. They might as well file for bankruptcy and that is it.

They will claim that they are using your invested capital to trade for them and then give them returns and that is the reason why they give such high yield percent to get easy targets and many of the newbies will believe this and then invest with them. It is not Bitcoin that gives such promises as Bitcoin profits can be received with you only holding Bitcoin in your wallet and you do not have to give it to any company to hold for you then give you profits. Many peojects are always coming up with this high risk scams and scamming many Investors successfully because we have many people that are greedy among us and they want anything that will promise them quick  profits.

[JimaGod]

This is a good way of making money, said the friend that shared this screenshot to me



You can hand over your Bitcoin into the hands of Coinbase and start making money every month, the percentage is actually attractive isn't it? I see that a lot of people are doing this but here is my own advice about it.

Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

If you have $10,000 worth of Bitcoin it's smarter to risk $500 every month for this 6.5% gain.

update

I'm sorry for all the mixed up, it was actually USDC to Bitcoin reward, I was in haste to drop the topic because something very bad came up at home and it has successfully disrupted my mind, it affected me so much that I couldn't even think straight or read right.

No risks no gain, that's how the market works but it's our duty and we're obliged to learn the basis of the market and of everything within our techniques to ensure we're reaping gigantically from the market even though it do comes at the expenses of some losses. But what are losses when our profits surpassed them? Let's talk about the percentage, it might look a little bit alluring but at least we should always look at the ends because all this centralized exchanges are hiding something.

Also a 6.5 reward is definitely going to look relevant on our papers but when it comes to our assets, we should be able to tell which assets is generating such sufficient profits and how it will affect us if things do go south. I know people doesn't want or don't like to hear the truth about the market but we should know that it's not completely good and free as you see it.

Don't need to apologize, we totally understand the scenario. Things do blow out of proportion at home and it's your main objective to always fix them and don't forget to stay safe because it's a cruel world we lived today.

[JiiBs]

This is a good way of making money, said the friend that shared this screenshot to me



Do not hand over all your coins in the hands of a centralised exchange, it's a very risky practice, if you must do it make sure that you are risking only what you can afford to lose.

That’s where the risk is, having to hand over all your coins to a centralized exchange. Should anything go wrong, then you would have lost both the percentage you hoped to gain on that holding and the value of the stacked coins.

With all the episodes that we’ve have to experience from having to leave coins on centralized exchanges because, the bottom line of it still comes down to saving on centralized exchanges, it would be an idea that isn’t worth going with in the event of a crash.