Steemit Crypto Academy – Season 2 - Week 2 - Post for @fendit

Hello awesome people, how is everyone doing today, weekend is here again, with fun and exciting times ahead. As usual, hoping for another fun-filled weekend. I’m really excited to be showcasing my knowledge for this week’s topic. This week’s topic is about savings, risk aversion and investments, i.e making your cryptocurrency work for you.

My Risk Aversion

Risk aversion is sometimes the best decision… I know that there are people who always say something like, the only way to make a lot of gains especially in the cryptocurrency space is to take a lot of risks… While this is true to some extent, sometimes it is a good idea to avert risk and take the safest way possible. Not all risk eventually turn out successful or profitable, some risk can be disastrous and lead to huge losses. For me, I have taken risks when investing in cryptocurrencies, and some of the risks became losses. While some risks have yielded big returns.

Before I delve deeper, it is important to understand what risk aversion is. Risk aversion is basically the act of taking the safest way possible when investing in any cryptocurrency in order to reduce any chance of losses. In other words, when an investor focuses on risk aversion, the investor prefers to make the least profit just to avoid any possibility of losses or failure.

For example, risk aversion allows an investor to only invest in things like savings that is more stable even though the profit or interest can be very low. When it comes to risk tolerance, mine is Moderate – because as an investor in any cryptocurrency, I prefer to have a balance between taking risks for huge profits and reducing risks to minimize losses. I am not bothered about the short term fluctuations in price, because I know that the investment would bounce back and make huge profits in the long term.

For me, my risk aversion is Flexible Savings - As an investor in cryptocurrencies, I find flexible savings more appealing… Even though the interest is low in flexible savings, I can accept the low-interest rate and still be able to withdraw my cryptocurrencies from savings any time I want because of uncertainties in the crypto space and volatilities of cryptocurrencies. We all know that anything can happen in the crypto space, so having the ability to remove my cryptocurrency from savings anytime I want is appealing.

Fixed and Flexible savings, High risk Products and Launchpools

Fixed savings

Fixed savings is one of the savings type and ways to earn passive income on platforms like Binance. The name fixed means that the cryptocurrency asset will be locked for a certain period of time and can only be withdrawn from the fixed savings after the locked time frame is reached. On platforms like Binance that offer savings as a way to earn passive income, Fixed Savings is basically a type of savings where the cryptocurrency asset is locked for a certain time period… and once the time period is over, the cryptocurrency can be withdrawn from the fixed savings. This type of savings method has a much higher interest rate, but the only downside is that the cryptocurrency cannot be withdrawn until the fixed time duration is reached.

Flexible savings

Flexible savings is also one of the savings type and a way to earn passive income on platforms like Binance which offers flexible savings. Flexible savings is a type of savings that allows saving your cryptocurrency and withdrawing without any lock time duration. This means that when saving a cryptocurrency in flexible savings, the cryptocurrency can be withdrawn anytime. The downside to this is that the interest rate can be very low compared to fixed savings which offers much higher interest rates.

High-risk products

High-risk products are another way to earn income on platforms like Binance. High risk products are a bit more risky compared to the fixed savings and flexible savings. However, the returns can be very appealing. On Binance, there are three aspects of High risk products; DeFi staking, Dual investment and Liquid swap. But I will be focusing only on Dual investment.

On Binance, Dual investment or dual savings is a two-asset yield aggregator. It enables anyone who invest to earn regardless of the direction the cryptocurrency market goes. On dual investment, you lock your cryptocurrency in a yield and earn yield based on two assets. We all know that cryptocurrency is volatile, which means that the price a cryptocurrency as skyrocket at any time depending on various factors. With this, you can earn even more if the value of your locked cryptocurrency goes up.

Launchpools

Farming has been one of the major talking points in the crypto space in the past months especially since the rise of DeFi and staking. Launch pools is another way to earn on platforms like Binance. Launchpool is basically farming a new token with another cryptocurrency. In other words, you can stake a particular cryptocurrency and farm a new token entirely which has value or can increase in value. On Binance, you can stake BNB on the launchpool and earn other new tokens like TLM.

How to Setup Flexible Savings on Binance

Setting up a Flexible Savings on Binance is a straight forward process. To do this,

• First visit the Binance website https://www.binance.com and login to your Binance account
• On the Finance Tab, click on Binance Earn

[My screenshot]

[My screenshot]

• Locate Flexible Savings section
• You will find a couple of cryptocurrencies that are supported for flexible savings
• For this demonstration, I will be using BTC… choose any of the supported cryptocurrency and click on the “Transfer” button. Each of the different cryptocurrencies has its different estimated APY. Also Pay attention to this when choosing the cryptocurrency for flexible saving

[My screenshot]

• Before proceeding to click on transfer, make sure you have BTC readily available in your spot wallet
• On the transfer page, input the desired amount of BTC you want to transfer and deposit for flexible savings

[My screenshot]

• Once you are done, accept the terms and click on the transfer confirmed button
• You can now start earning interests from the flexible savings based on the APY.

@fendit