Seeing stablecoins offering a 20% annualized return, beginners are easily tempted. To be honest, only newcomers to the space dare to make large investments in such high-yield products.

First of all, there is no such thing as a free lunch. High interest rates also mean increased risks—capital safety is the first priority. Moreover, the current interest rate can be adjusted at any time or even delisted, can institutions really make that much money from it later? Just think about the answer.

Secondly, a surge in stablecoin yields often signals market conditions. During a bull market, everyone needs stablecoins to buy the dip and allocate assets, so demand naturally drives up interest rates. Therefore, when high-yield stablecoins frequently appear, it usually indicates that the market might be moving, and the prelude to a new cycle is also approaching.

The third trap is the most subtle—psychological pitfalls. Locking funds in stablecoin yields and watching other cryptocurrencies surge can create a sense of urgency. Impulsively putting large sums on the chain to chase gains can lead to transfer errors, theft, or exchange collapses... the risk level skyrockets. By then, it’s too late to regret.

So, no matter how attractive the returns, always consider your own capacity. The easiest trap for beginners to fall into is greed.