Steemit Crypto Academy Season2 Week2 // Making My Currencies Work For Me Assignment For Crypto Academy For @Fendit

It is another avenue in the crypto academy and I am delighted to be part of this class. Not only is the topic well explanatory, it also serves as a guide to investors on the different risks involved and investment processes to adhere to.Special thanks to @fendit for the wonderful teachings.
This week, I will be discussing on
Which is your risk aversion, which of these products you find the most appealing and why

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Every business involves risk. The very art of business is a pointer to the fact that uncertainties are bound to happen and risks are vital part of the 'modus operandi' of business ethics. Same goes for the crypto trading, the prospect of an increased investment is on the high side. There exist a positive growth platform which has proved itself overtime. But, just like any other business trade, the crypto trading involves a lot of risk and uncertainties. It is the responsibility of each individual to trade based on his or her risk aversion and risk tolerance so as not to fall victim of excess loss.

Personally, I believe risk is a critical neccesity for business growth or failure. It is required to analyse risk before venturing into it. From the lessons, the major form of risk include: conservative risk, moderate risk and aggressive risk.

Conservative risk taker: They have low risk tolerance , they believe in fixed investment and few stocks portfolio. Conservative risk takers are very careful before venturing into any risk and usually don tmind earning little as long as it is safe.
Moderate risk takers: They adopt a balanced approach. They are willing to accept modest risk for higher returns. He can accept a short term loss for a higher long term appreciation. A moderate investor operates with a 50/50 percent mindset.

Aggressive risk taker: An aggressive risk taker is willing to take more money to get a higher form of reward than a conservative person. An aggressive investor goes all out to invest and has the consciousness of a certain reward. He believes greater risk attracts more financial reward.

There are certain ways to measure risk tolerance: From present financial capacity to bills accumulation, guaranteed ownership, level of risk taking etc.
I would describe myself as a moderate risk taker because overtime, I discovered I love to take calculated risk and although willing to risk into viable investment but with a sense of care too.
Explain in your own words, fixed and flexible savings, high risk products and launch pools.

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LAUNCH POOLS

Launch pool represents the latest invention by binance. It is a safe investment that allows you use your tokens to earn free tokens. The total amount earned daily is equal to the token amount you have invested in the pool versus the number of tokens invested in the pool. A new token can be earned over a set of period usually 30 days. On the 7th day, token trading are usually opened and at that point, you can immediately trade the earned token. The tokens earned are calculated annually and you can harvest your pending rewards at any time.
Binance releases launch pools where user's acquire token rewards in return for staking BNB, BUSD, APPA and other tokens. User's will be able to stake the BNB, BUSD or APPA tokens into 3 separate pools to farm tokens over 30days. User's will be able to run-stake their funds at anytime with no delay and participate in any other available pools immediately.
Rewards are calculated and distributed daily and only tokens in your wallet will be able to be staked with launch pool.

FLEXIBLE SAVINGS

This refers to crypto savings account that can earn interest. With binance flexible savings, There involves flexibility to deposit and redeem funds or crypto holdings at any time without penalty. It has a huge advantage.
In this savings method, users are required to choose a deposit amount for flexible savings interest account investment. Deposit funds are reduced from the binance wallet ,exchanged and keyed into the flexibility savings account for the day. By the next day, user's can remove from the savings wallet as early as the next day. There also exist the options to choose fast redemption or standard redemption.
Fast redemption enabled immediate referrals but the user won't earn any interest for the day they receive the funds.
Standard redemption allows the user withdraw funds the next day while still collecting interest for the day they initiated the withdrawal.
The daily binance savings removes all deposits from flexible savings account daily from 23:50 to 0:10 UTC . Deposits for specific crypto assets are disabled after binance daily investment limit is accomplished. If the total limit is filled for a day, it recommends buyers to invest the next day.

FIXED SAVINGS

Fixed savings helps me save towards a target amount of investment daily, weekly or monthly. I get to choose my target amount, duration and date to start saving. I cannot withdraw from a fixed savings until my goal is met.
This is a form of saving that aims at keeping crypto currency. Interest are earned too, although interest are higher. On the day of investment, binance savings will deduct the funds from the exchange wallet. Binance distribute the locked savings to the savings wallet and the saving product will start to generate interest. Users who subscribe to locked savings accounts are required to lock their funds in an interest wallet for a fixed term. Longer terms offers higher APY.

HOW TO LOG IN

Log into Binance account.

Click finance, select binance earn from the drop down menu.

Click fixed terms to enter to fixed

Select duration of assets and click transfer .

You will be required to confirm the subscription information .
After entering the amount, the interest rate as at the collection date will be calculated.

Defi staking

This is also a safe investment on binance. You can receive fixed interest in the same currency from the token staked. Although you can withdraw the staked amount.
TERMS USED IN FIXED SAVINGS
Locked savings: User's must select a fixed length term 7,14,30 or 90 days.

DEPOSIT LIMIT: Binance uses "lot" to refer to crypto assets locked into savings account. Each individual has an individual limit.

INTEREST PER LOT: implies annual interest rate , it is calculated based on the coin and the time or duration.

COIN: The asset to increase.

VALUE DATE: The date when your asset starts to calculate the interest

REDEMOTION DATE: The date when you can redeem your assets.

You can choose to port to flexible savings after the redemption date. This can be possible using the funds and interest received from fixed savings.

HIGH RISK PRODUCTS

Digital products include:
BUSD, USDC, USDT, HARD, XUS
It is possible to become a liquidity provider like pancakeswap, uniswap etc It is important to be careful of loss.
User's can redeem funds via the standard redemption procedures at any time and the principal will be returned to the users account one day after the redemption. It takes 24-48 hours to receive the token due to to difference time zones worldwide.

In CONCLUSION

Although cryto trading is subject to high market risk. It is important to trade carefully. Binance will make the best efforts to choose high quality coins but will not be responsible for any trading loss