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Liquidity pool question for long term holding

Binance

Cryptocoins Exchanges / Binance 179 Views

Hi guys,

New to crypto/investing and want to ask a query about Binance LPs

So my understanding is that providing a coin to the LP helps with providing liquidity to the coin pair picked, and your reward is a portion of the buying and selling charges that traders in that pair paid.

I'm unsure what impermanent loss and so on means, however I feel it means the brand new worth of the coin had you stored it in your wallet?

If my plan is to carry onto my coins for the long term until some signs of bull market and assuming by then the worth of my cash shall be greater than the worth at adding them to the LP, is LP value it for passive revenue?

Actual example: I added 70 THETA tokens to LP, the worth was round $1 per coin then, it confirmed that I'll be adding 35 THETA and 35 USDT, a month later, the worth is now 0.75$ per coin, and I earned 70 cents (from buying and selling fees), if I redeem my cash now, will Binance still put 70 THETA in my spot account? I do know THETA are cheaper now and I might have technically misplaced 25% of my THETA portfolio if I stored them in spot, I'm superb with that, and was asking whether or not including my portfolio into LPs if I intend to hold all my coins for a very long time and sell when a bull market hits is value it

Or am I missing another method that I might lose my cash themselves?

Any help is appreciated

submitted by /u/FhaL97
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