Crypto Academy Week 10 - Homework Post for [@fendit]

Taking flexible savings, let's consider our bank deposits. We place our money in banks and go for it anytime we need it. Its dormant but the banks use it for investment and gives the account holder a percentage of the profit made on that. They call that interest on the principle. In binance, this banking system is called flexible saving. You save your assets, and they are used for business. You gain a massive profit on what they use it for. For flexible savings, profits come in on daily basis. Remember you can always go for it anytime with your asset being intact plus a percentage of the interest gained from it.

The next is fixed saving, fixed saving deals with lock. This lock simple means your asset are looked with a subscription end date. Is being looked for that particular time and its being used for business. Unlike flexible you can go for your asset anytime you need it, in fixed, you can’t have your asset until the subscription date is over. The higher the subscription days the larger your return on that investment. This investment is mostly for a moderate averse to risk. But sometimes people may want to withdraw before subscription days. If this happens, one may lose his corresponding return. So, the best way to invest in fixed saving is by using coins you don’t have intentions of using.

Then we have launch pools. Binance uses this platform to advertise and help projects get liquidity from investors. It uses this platform to help IEO’s raise funds to get it into business. After the farming period is over, tokens generated are then shared among investors. Farming period in this means the number of days the project took to complete. This can be seen in the Binance Token Launch Platform. When you open it, you will see projects undergoing farming and when it will be ending. These guides you to choose the farm you want to invest into. Launch pool is a good way of obtaining new tokens. The opportunity cost of locking your tokens is getting new tokens. This can also be redeemed at any time.

For high products like dual investments, it deals with depositing your cryptocurrency and yielding two tokens. You lock your asset in a yield but makes more profit if the value of your locked holdings increases. This is use to make income no matter the value of the price direction. Before going into business, you set the settlement price (The value of currency you think your holdings will have at the end of the yield.) Your return is dependent on the settlement price. If the value of your holdings increases to by-pass the saving rate, then your return is high. But if it doesn't exceed, you get your yield from saving.

Because of my aversion to risk, I will like to invest in fixed savings. This gives me some time to invest a coin I am not planning on using. The process is as follows.

Open the binance app and make sure you have an account.