Steemit Crypto Academy Week 10- Homework Post for @fendit | by @mandate

Hello dear friend, what a wonderful week we are having here. I am here again to make submission for the post homework task by professor @fendit before we go forward, we need to understand some terms about risk aversion so I will start with the introduction

Introduction to risk aversion.

What is risk?

Risk can be defined as the possibility of having a negative outcome from an event or the possibility of incurring a loss in a business.

What is Aversion?

Aversion can be defined as the turning away or running away from something.
Therefore Risk aversion is the turning away from possibility of having a negative outcome or incurring loss during a business.

Risks are inevitable in businesses but risk aversion helps in making sure the risk of a business is at the lowest peak and won't have a huge effect or impact on the investors.

Risk aversion in the Cryptocurrency world.

Every investor always look out for risk aversions in a business before venturing into it. The same applies in the cryptocurrency world. There are lot of risks associated in trading cryptocurrency or in investing in cryptocurrency. One of the major risk is the volatility of the crypto, it tends to fall with a very high percentage which causes loss for the investor and at the same time goes up with very high percentage which causes profit for the investor.

There are some few Risk aversions that can be used in the cryptocurrency world.

1. Stop loss (this is for traders in cryptocurrency): this is one of the greatest risk aversions for those who trade cryptocurrency, this feature on the trading platform allows for investors or traders to set a price which their coin can be sold, to set when to take profits and when to buy a coin even when they aren't monitoring the trade. All they have to do is set the stop loss limit and the broker will do it for them. This innovation in trading has saved alot of traders from loosing too much while trading.

1. Taking profits: When a particular token is been invested on and it begins to yield profit at the long run what the investors does is to take out a certain amount of profits(sells probably 3/4 or 1/2) from the token by swapping to a more stable coin or converting to fiat. After this has been done it is certain that the investor has made profits from the project if not much but a little. If eventually the remaining tokens yields more profit it's a win-win situation for the investor and if eventually it also falls below making profit the investor won't incur lost also. This is very important in investment.

Appealing cryptocurrencies or the interesting products I found

There are alot of cryptocurrencies in the market now but everyone sources for the most appealing to them. We have various nice projects like Etheruem, Tron and the likes and we have new projects which looks promising also like safemoon and Moonrat.

Moonrat, it is a new project which is just 7 days old. This project is an anti- whale project which doesn't allow people to buy more than a certain amount of crypto or sell more than a certain amount at a particular time so as not to affect the price of the coin too much. It also gives it's holders BNB which is a mother token depending on the amount of Moonrat token they hold.

There is no more appealing project than this at the moment.

fixed Saving

(I). fixed Saving: this kind of saving like the name implies is a kind of saving whereby one saves and earn some certain percentage of money called interest at a specific or locked time. The duration at which the coin is locked determines the interest, during this period the coin invested can't be collected back, until after the set duration

flexible savings

(II) flexible savings: this is similar to the fixed saving but the only difference is that the interest rate for this coin is lower and it is been loaned to someone and can be collected back anytime the owner wishes to. This is the flexibility in it, ability to collect the loaned coin at any time.

High risk products

(II). High risk products: this kind of products or cryptos are done on an exchange platform but the platform doesn't guarantee the safety of the investors money or capital. They are called high risk due to this reason, the investment is based on the investors discretion whether the investment is legit or not.

launch pools

(II) launch pools: this is a way to earn new tokens with an already existing token. It is called farming, the interest or the amount of token to be accumulated depends on the capital that has been staked with the existing coin.

How to set (swap) investment on Binance as a form of my investment on Binance.

You might be wondering how does swapping a form of investment on Binance. Yes it is. Sometimes I swap to a coin and in the next few days or weeks, the coin get value in rising which benefit me as a profit and many more.

Swapping is also a kind of investment under binance.

Swapping allows for the exchanging of a token to another token.

For example if you want to invest in BNB and you have BTC, all you have to do is go to your binance app, once it opens and shows the homepage interface.

Then you click on trade at the lower bottom of the page. It will show you the trade interface, at the top of the page you will see different options such as convert, spot, margin and future.

You will then click on convert, which will take you to a new page where you will selects the coin you want to exchange, we will be exchanging BTC to BNB after the coin is selected you then input the amount of BTC you wish to swap to BNB and press preview transaction, if it is fine by you, then you click the confirm button and you are done.

The new token you have converted to will show on your wallet.

These are the screenshots below to back up the explanation I made up

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Best regards

@fendit

Written by @mandate

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THANK YOU!