Many friends with $1,000 to $5,000 want to enter the USD1 ecosystem to earn arbitrage profits but always feel the process is complicated and fear pitfalls. Actually, as long as you proceed in stages, even beginners can steadily lock in an annualized return of 15%-20%. Today, we will start with the safest approach—how to test the waters with $1,000 and gradually scale up to $5,000.

**Step 1: Safely get started with $1,000**

In the beginning, don’t rush to invest a large amount. Choose BTCB as collateral for a simple reason—it has high liquidity and relatively moderate volatility.

The operation process is as follows:

First, register with a major exchange and complete real-name verification. At the same time, download a self-custody wallet, join the BNB ecosystem, and prepare about $5 worth of on-chain Gas fees in the wallet.

Next, buy $1,000 worth of BTCB on the exchange and transfer it to your wallet. Then, connect to the Lista protocol and deposit BTCB as collateral. Here’s a key point—don’t be greedy, set the collateral ratio at 180%, which is enough to borrow out $600 of USD1. Why not borrow more? Because the lower the collateral ratio, the higher the risk—if the coin price drops, liquidation becomes easier.

The borrowed USD1 is transferred back to the exchange, where you can purchase a flexible savings product, which currently offers an annualized rate of about 19%.

How does this calculation look? The annual borrowing cost is only $12.6, while the earnings from the savings are $114, resulting in a net profit of $101.4. The annualized return is close to 17%. For small investors, this return can cover many small expenses.

**Step 2: Advanced strategy for $2,000-$5,000**

After gaining some experience, you can consider increasing your investment. Friends with $2,000 to $5,000 can adjust their strategy.

At this stage, you can invest in batches, for example, gradually adding funds to the USD1 ecosystem in 2 to 3 installments. Each time, keep the collateral ratio between 180% and 200% to maintain manageable risk. You can also try reinvesting some of the profits to grow your position through compounding.

The key is to keep a steady mindset—this is not a short-term trading game but a prudent way to grow idle funds. Take time each month to review your positions, and adjust the collateral ratio appropriately during significant price fluctuations to ensure you sleep well at night.