Hello to all steemains!
First of all, I would like to thanks to the proferssor @fendit for sharing such an informative lecture which is about how we can make the crypto currency work for us. Here is my homework.
Which is your risk aversion, which of these products you find the most appealing and why
My Risk Aversion
Whenever we think about crypto currencies, the idea of becoming as much rich as the Bill Gates is over a night come into our mind. But it does not happen so quickly, so easily. Not all the people know that you not always get the profit when you invest you money in crypto currencies. There are a lot of risk which you need to keep in your consideration while investing your money. But we have to take as much risk as we want to gain profit from crypto market. Sometime, these risk result into big lose and lead toward the disastrous. I think we should not do investment for long or short period, it can yield a higher return, but it also entails a higher risk and you may lose all your money if market goes down.
That's why, I think it's best to avoid the risk as much as possible and adopt the securest way. This securest way may not turn out in big reward but at least you would have the security that your money will not lost as you have avert the risk as much as possible.
Risk Aversion: Risk aversion refers to the practice of investing in cryptocurrencies in the best possible manner in order to minimize the risk of losing money. When an investor is concerned with risk tolerance, he prefers to make the smallest return possible in order to prevent any potential risks or disappointment.
In other word, An investor who chooses lower returns with known risks over higher returns with uncertain risks is known as a risk averse investor. This investor often chooses the option with the lowest interest rate among various investments offering the same return but varying levels of risk. He adopt the offer which is more securest no matter how least the profit will be.
What is my risk aversion
Binance hade don a lot of work to copy the most advanced and common decentralized apps of finance and migrate them to Binance Exchange by making them secure and more available to newcomers. I have studied a lot and find the flexible saving more secure and safe for investment.
Flexible Savings is a financial program offered by Binance that encourages consumers to invest and gain interest. Each consumer can start earning money by lending their idle crypto assets to Binance Margin. Your Crypto savings plan is called Flexible Savings. To start earning interest, simply mark your holding crypto as loanable. The scheme is adaptable, allowing you to withdraw your money at any moment.
I will prefer the low interest rate in flexible saving at binance as the risk level is low here. It allow the user to withdraw their invested assets when ever they like because of the volatility of cryptocurrencies and the uncertainty throughout the crypto world. As changes are happen every time in the crypto world, so having the access to withdraw crypto assets from savings at any moment is attractive.
Terms of Flexible Savings products
The average annual return: Average daily interest rate is for the previous 7 days is multiplied by 365 to calculate the AAR.
Interest Per Thousand: IPT of a crypto asset is based on the recent/new daily interest rate.
1-The flexible savings can be subscribe or redeemed at any time.
2- The users can credit their investment immediately. No need to wait.
3- You are able to redeem or subscribe the Flexible savings from 00;10 Am to 23:50PM.
4- When you subscribe the flexible savings, you interest start calculating and you can withdraw you interest just after two days after subscribing.
5- While subscribing, there are two option for redeem( fast redemption and standard redemption) your assets and you have to choose one.
Standard Redeeming: You can get the whole amount on the next day of redemption.
Fast Redeeming: You will returned all amount of digital currency without interest at the day of redemption
Explain in your own words fixed and flexible savings, high risk products and launch pools
Locked or Fixed savings
On sites like Binance, fixed investing is a types of savings and opportunities where you can earn passive interest. The term "fixed" refers to the fact that the crypto assets will be keep there in locked form for a specific period. the users are able to remove the assets from from the fixed savings account after the time limit has been met. The interest rate on the Fixed savings are very high
It is useful for the token which you want to invest for long period of time.
Drawback: The main disadvantage or drawback of the Fixed or locked account is that You cannot withdraw the crypto currencies until the specified time period has passed.
Flexible savings is a platform on binance where you gain unresisting and passive interest. It's a sort of savings where you can save your assets any time and even withdraw your them whenever you want. You don't need to wait for certain amount of time as you do in fixed savings. You just invest your money and get the very low amount of interest. You can withdraw this any time if you need this.
Drawback: The disadvantage of the fixed savings is the interest rate is very low.
The regular amount of tokens which the user receive is equal to the number of tokens you have subscribed to the pool vs. the cumulative number of tokens subscribed to the pool.
The users are allowed to earn new over a fixed time duration. On the seventh day of farming, we usually allow token trading, where you may automatically exchange the tokens which you have received. All of your tokens are measured hourly, and you are allowd to collect any pending prizes at any time. Basically, you get a free coin before (and after) a guaranteed listing on Binance.com.
You can earn money on high-risk products too. You invest your tokens and in return you get interest. As its name refer it is a bit more risker than others but the interest rate is higher as compare to flexible savings.
Drawback: investing in high-risk products is more riskier as compare to fixed savings.
There are actually three main factors in high-risk savings.
Defi staking: Defi stand for decentralized finance. It is characteristic of our current banking system, DeFi uses smart contracts on a blockchain and provide consumers with decentralized financial services.
Liquid swap: In binance liquid swap, a very good interest rate is offered to the users on stable coins.
dual investment: In dual investment, regardless of the market direction, the users are allowed to invest to get profit . here the user fix his crypto assets capitulate and earn capitulate which depend on two investments while you invest in a dual fund. Crypto world is speculative and changes are happen every time there. The market goes up or goes down at any moment based on a variety of factors. If the price of your locked cryptocurrency rises, you will gain even more
Difference Between Fixed, Flexible,
|Fixed savings||Flexible saving|
|The user's funds are locked for specific period of time. You can only withdraw money once the specific duration passed.||The user can invest in flexible saving accounts any time. The is no need to wait for specific period of time to withdraw money from flexible saving accounts.|
|The interest rate in fixed saving accounts are very high than flexible saving accounts||The interest rate in low as compare to fixed saving accounts|
|The risk level is high as compare to flexible saving accounts.||The risk level is low in flexible saving accounts|
Difference between Launchpool and High-risk savings
Prons and Cons of CFD
|Launchpool savings||High-risk savings|
|The investment in launch pool savings is less risker as compare to high-risk saving.||The risk level is higher in such sort of savings.|
|You invest your tokens and in return you get interest.|
|THe interest rate is high but no more than high-risk savings||The interest rate in high-risk savings is high.|
Show and give detail on how to set the investment you chose in Binance. If you don't use Binance as your exchange, let us know which alternatives you have in your own exchange and simulate the process of investing in Binance.
It is very easy to built a setup on flexible savings to invest you assets there. so let's start.
First step: Go to the google and search binance.com. A new page will be open.
Second Step: if you are new over here then you need to register yourself other wise just login by entering your username and password.
Third Step: Go to the finanace and select the Binance earn from drop down manu. You will go to another page.
4rth step: Click on view more and enter the duration and amount for your asset and click on transfer.
Fifth step: A new page will be appear where there will be some option like:
Coin: which coin you want to invest,
Amount: How much you want to invest.
Duration: for how long you want to subscribe.
Individual max and Expected interest: the actual maximum number of lots per user is known as individua max. And expected interest mean the level of interest that the user is hoping to gain for in return of his investment
Value and Redemption date: The date when your assets start calculating is known as value date and the date when you can redeem your asset is known as redemption date.
Once you done your transaction, the asset will be transferred from your Spot Wallet to your Earn Wallet and After the redemption date, your assets will be transferred back into you spot account with interest.
I Don't have made the transaction as i don't have token in my spot wallet. That's why i get some help to complete this homework from here. All the images are took from my binance acount. I have created account on binance and soon will invest my money over there.
It is very easy to invest your assets in binance. Moreover you can gain more interest if you have a bit knowledge about the crypto market. I have learnt alot from this homework and from @fendit lecture too. And i have concluded that the binance is a perfect platform for those who want to invest their money and earn money.