Steemit Crypto Academy - Season 2, Week 2 | Make your cryptocurrencies work for you | Homework by @danielo109

in SteemitCryptoAcademy3 years ago (edited)

Hello Professor @fendit, thanks for the great lecture. Was very simplified and easy to understand. Would take time to explain what I understood with answering your questions.

Top-7-Ways-to-Earn-a-Passive-Income-with-Crypto-1024x683.jpgsource

Making Your Coins Work for You

Being successful as a business man or trader depends on the strategies you use. You need money to make money, and there are various opportunities out there that you can make use of to earn money. At times you wouldn't even have to put in a lot of work to earn. We call money earned by not doing a lot of work passive income.

My Risk Aversion

To earn passive income, you can make your coins (money) work for you. Don't forget also that easy and less activity in something which would generate profits comes at a risk. To earn with this strategy you must be prepared to take risk. My risk aversion is conservative. I like taking risks. But before I do, I ask myself whether the risk is worth taking. To me, If I make little and consistent profits, it's better than taking huge losses out of greediness for money.

Investment Products

Token Lunch (lunchpool)

I prefer taking advantage of the offers new tokens have. New tokens as a means of funding use lunchpool projects. This allows you to stake your funds and earn interests at the end of the farming period. I prefer this because it has lower risk when you take into consideration the APY (Annual Percentage Yield) and it's very high. This makes the probability of you making profit more than 50%. To me, lunchpool projects are a great way to earn income passively.

Fixed and Flexible savings

Savings are another way we indirectly provide funds to pools. They make use of your savings and give you a percentage of the profits as interest. With fixed savings you do not get to use the money you have reserved till the time you set for reserve is met. With flexible savings you can use the money at anytime. With both savings you get to earn interest on the amount to saved but then, fixed savings earn more than flexible savings. This is similar to how banks work. Imagine you run a business and then you are able to use the savings of your employees but then your employees have two characters. Some save for a specific time and so you know how to utilize their savings to make profits and give them a percentage. And others which are not stable have no specified time for savings and so you can't fully utilize their money to make profits because you have to make their money available to them whenever they want it.

High risk products

Dual investments is a type of high risk products. It is a type of investment I would hardly partake in because of the volatile nature of cryptocurrencies. Other thing is that it involves two cryptocurrencies too. You invest using one cryptocurrency and earn based on two cryptocurrencies. If things go on well you actually earn a lot, but if there is a fall in both prices of cryptocurrencies you run at a loss. It's a great way to earn money if you are good at forecasting but then its too risky.

How to set up Lunchpool products on Binance

It's simple and easy. Go to the lunchpool page on Binance. site

Screenshot from 2021-04-21 11-14-47.png

Select the pool you prefer.
And click stake now.

Screenshot from 2021-04-21 11-21-14.png


Let your coins work for you instead of sitting on them. If you are scared of loosing your money and so you don't want to risk a trade, you could visit Binance. They give you enough details to know you have less risk. They offer different products also, so take time and choose your preference.
Make money with money.

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Thank you for being part of my lecture and completing the task!


My comments on your work:

Nicely done, on the first task you missed to include which product you find the most appealing.

The second task was ok, but the third one was a bit brief! A bit more detail could have been better!


General comment:
Nice work! You've explained all concepts in a very clear way!
Thank you for taking part :)


Overall score:
5,5/10

 3 years ago 

Thanks Sir @fendit
I actually thought I had answered all the questions. haha, would make sure to check well next time.

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