The world of digital asset finance is evolving rapidly, offering more options than ever before. For everyday investors, this expanding landscape can feel overwhelming. With a flood of products promising high returns — from staking to yield farming and automated trading — it's hard to know where to start or what’s truly safe.
To help clarify the current state of digital asset investment, insights from seasoned industry professionals like BigONE COO Cheng Jun and DGroup founder Zhao Dong offer valuable guidance. Their perspectives reveal not only the opportunities but also the risks inherent in today’s crypto financial ecosystem.
The Rise of Diverse Crypto Investment Products
Digital asset finance has moved far beyond simply holding tokens and waiting for price appreciation. Today, users can earn passive income through various mechanisms such as staking, lending, liquidity provision, and platform-based yield programs like Binance’s “Binance Savings” that offer double-digit annual returns on multiple cryptocurrencies.
👉 Discover how secure and transparent platforms are reshaping digital asset returns.
However, this growth has also led to a surge in misleading or risky offerings. As Cheng Jun points out, many so-called "high-frequency quant" or "arbitrage" products promise unrealistic returns with little transparency about how those gains are generated.
“The higher the promised return on mainstream coins, the greater the risk,” says Cheng Jun. “If a product guarantees high returns with no risk, it’s almost certainly extremely dangerous.”
Zhao Dong echoes this concern, emphasizing that most crypto financial products operate as black boxes — opaque systems where investors don’t know where their funds go, who manages them, or how profits are made. This lack of transparency has led to frequent platform failures and user losses.
In contrast, staking stands out due to its relative transparency. Since proof-of-stake (PoS) blockchains publish their economic models openly, users can verify reward structures and participation requirements.
Still, Zhao Dong warns: Staking doesn’t inherently boost a project’s value. It’s primarily a mechanism to reduce circulating supply by incentivizing users to lock up tokens. Projects without real development progress may still decline in price over time despite attractive staking yields.
What Are Realistic Returns in Crypto Finance?
With some platforms advertising annual yields of 100% or even 200%, it’s crucial to distinguish between sustainable returns and red flags.
According to Zhao Dong, such ultra-high yields often resemble high-interest deposit schemes, which carry enormous default risks. He cites a real case from earlier this year where a platform founder lost 2,000 BTC due to leveraged futures trading using customer funds — a stark reminder of the dangers lurking behind opaque operations.
More reasonable benchmarks include:
- USDT lending markets: Interest rates between 10–15%, driven by supply and demand with full reserve backing.
- PoS staking rewards: Average annual yields around 10%, varying by network (e.g., Ethereum, Solana).
- Mainstream coin-based products: Typically offer 5% in native coin terms or 10–20% when measured in fiat equivalents.
Cheng Jun adds that certain staking-based pools distribute up to 90% of protocol rewards to users — and some even provide subsidies to enhance yields. However, these higher returns come with conditions like lock-up periods or slashing risks.
Choosing the Right Platform: Safety First
For ordinary investors, selecting a reliable crypto finance platform requires careful due diligence.
Cheng Jun draws a parallel with traditional finance: just as mutual fund investors assess risk tolerance before investing, crypto users should match their risk profile with appropriate products. Higher potential returns always come with increased exposure.
Key evaluation criteria include:
- Platform maturity and track record
- Transparency of operations
- Product diversity and user adoption levels
- Security measures and reserve audits
Zhao Dong takes a more cautious stance: “For average people, I recommend avoiding crypto finance altogether unless you fully understand the risks.”
He stresses that even “transparent” platforms can’t guarantee safety — they’re only relatively safer. True security comes from full reserve backing and open verification, principles his team adheres to strictly.
Types of Digital Asset Financial Products
Understanding the categories of available products helps investors make informed decisions.
1. PoS Staking
Rewards vary based on the blockchain project and validator participation. Offers moderate yields with medium risk (slashing penalties possible).
2. Co-Branded Yield Products
Developed in partnership with projects; often deliver stable, high returns with low operational costs and minimal risk.
3. Balance-Based Yield (e.g., "Crypto Money Market Funds")
Similar to savings accounts; low risk, low return. Ideal for conservative investors.
4. Decentralized Pools
Non-custodial solutions where users retain control of assets. Provide steady yields without platform custody risk.
👉 See how decentralized finance is making yield accessible without compromising control.
How Do These Products Work Behind the Scenes?
The operational workflow for legitimate platforms typically follows a structured path:
- Market research and demand analysis
- Product design and development
- Testing and security audits
- Launch and user onboarding
- Node operation and yield generation
- Regular distribution of earnings
In contrast, fraudulent platforms often follow a dangerous cycle: marketing → fund collection → black-box trading → using new deposits to pay old investors → collapse or exit scam.
The Future of Crypto Finance: Toward Transparency and Standards
Despite rapid innovation, the digital asset finance space remains largely unregulated and inconsistent in standards.
Zhao Dong argues it’s still a “wild west” environment where transparency is rare but essential. His team champions 100% reserve verification and public reporting as foundational safeguards.
Cheng Jun believes the future lies in product segmentation, similar to traditional finance. We’ll likely see specialized offerings for retail investors, institutions, and projects — each with tailored risk profiles, compliance features, and utility functions.
Regulatory clarity and industry-wide standards will be key drivers in building trust and long-term sustainability.
Frequently Asked Questions (FAQ)
Q: Is crypto staking safe for beginners?
A: Staking can be relatively safe if done through reputable platforms or directly on-chain. However, risks include price volatility, lock-up periods, and potential penalties for validator misbehavior.
Q: What red flags should I watch for in crypto finance products?
A: Be wary of guaranteed high returns, lack of transparency about fund usage, anonymous teams, and pressure to recruit others — all common signs of scams.
Q: Can I lose money in a crypto savings account?
A: Yes. Even if labeled “zero-risk,” custodial products depend on platform solvency. If the platform fails or gets hacked, your funds could be at risk.
Q: How do I verify a platform’s 100% reserve claim?
A: Look for regular proof-of-reserves audits published by independent firms or on-chain verifiable data.
Q: Are higher yields always better?
A: Not necessarily. Excessively high yields often reflect hidden risks or unsustainable models. Prioritize transparency and security over short-term gains.
Q: Should I diversify across different types of crypto finance products?
A: Yes. Diversification helps manage risk. Consider spreading investments across staking, lending, and low-volatility savings options based on your risk appetite.
👉 Start your journey into secure, high-yield digital asset finance today.