Steemit Crypto Academy Season 2: Week 2| Homework Task (Making Your Cryptocurrencies Work for You)
Hi, fellow Steemians
I am very glad to come to you once again with my homework task. I very thankful to @fendit for his lecture on how our cryptocurrencies can work for us which was insightful and very educative for an amateur crypto-trader like me in this vast trillion-dollar crypto world. My task is to give you my little experience in trading with cryptocurrencies and how best to navigate the Binance App to make the best of your cryptocurrencies.
We are know the volatile nature of the cryptocurrencies and therefore associated risks. Risks are uncertainties outcomes associated with every trade which crypto trading is no exception so one must be sure that not all outcomes from your trade would be favorable. There are also facilities provided by crypto platforms to help us avert or avoid some of these risks, cryptocurrencies is associated with.
In the crypto world, risk aversion is the situation of investing in tokens in crypto market offers with lower risks and a possible favourable outcome. From your amazing Lecture, to was made know to us about the categories of investors being tolerance to risks of which I state totally that I'm comfortable with conservative and moderate in my tolerance to risks associated with cryptocurrencies. I has not been able to be aggressive in my tolerance due to the huge investment it demands and the huge risks associated with it.
As an amateur crypto trader with only 8 months experience in the market. I am very conservative when trading my tokens in the market because it would be very heart-breaken to lose my little capital invested in these token. I always like playing it safe in my trading while hoping for a boost in the prices. Before I even invest a token i will make sure that I study the market thoroughly to be sure of the trends before investing but I mostly invest my token in the flexible savings so in times of price fluctuations i can easily withdraw my saving with small profit which is better than having none.
When ever I make about 30% in profits like when a made a purchase of Doge coins in early April and make about 35% profit on investment the I decided to invest with about 80% of my profit into fixed saving. This is because fixed savings have moderate risks associated with it and tokens invested can only be rewithdraw after the specific period set up in the terms and conditions is reached.
One of the investment I'm also familiar with is the launch pool on Binance where we are granted freedom to farm some of the new token created. After staking and when the farming season is over you havest some of your new tokens with addition incase the token get popularity instant. So with this kind of investment you are always guarantee your investment even when there is no profit.
As I explained briefly earlier on me being moderate on my tokens in my tolerance to risks associated when I earn huge profits. Using the Binance App, Fixed savings is for investor who are moderated in averting risks. This option on Binance gives the investor the opportunity to put to a certain amount of tokens (usually the stable cryptocurrencies like USDT and BUSD) for a specific period of time to earn high interest on them. With this type of investment, we the specific period is not up, one cannot remove the deposited account and the prices of the token would be used in the valuation during the period lasts so it is better to use capital which when lost will not matter much due to the high risks associated with it. Fixed savings is termed as Locked in the Binance options of savings.
fixed savings on bianance
Flexible saving is my choice when it come to investment in tokens. As a amateur trader and a newbie in the crypto world I would recommend it to my fellow new traders. Flexible savings is a type of investment when you stake your tokens in, there is a freedom to take your tokens back to your wallet anytime you want making the risks avertion very high but with low profits. Since the risks are low as compared fixed or locked saving making it interest and approximated percentage yield on the flexible very low to the fixed ones.
flexible savings from binance
High risk products are for the big league (that is for people who invest huge sums of token). These products are for the investors with aggressive aversion to risks and therefore subjected to higher profits. There are many high risks product available on Binance like dual investment and liquid swap but will focus on the dual since that was taught during the lecture. Dual investment per my understanding is a high risk investment where the investor makes a prediction for a rise in theprice of token his/she stake and the his/her token is pegged with another token in which his/her profit together with his/her principle would be paid if the forecasting was right. The investor makes a high profit if his predictions are accurate and run at a loss incase the prediction do not go as planned.
high risk products from binance
Lunch pool is one of the low risks products and it comes with you not loosing your tokens you stake. Launch pools or launchpad as termed on Binance serves as a platform for newly created tokens where investors can stake with their tokens and get an estimated number of the new tokens to your token and when the specific time ( termed as farming ) is over, the investor can claim plus the profit for the token staked(also known as the harvesting period). When one is lucky and the new token boom then the profit increase. These type of investment are associated with investors who are moderate and conservative to risks as risks to this is negligible. Although this type of investment is free interms of risks, profit can only be claim when the farming session is over so conservative investor is rest assured that their investments are safe.
lunch pool from binance
The following steps should be followed when you want to invest in fixed or locked savings on the Binance App.
- Step 1
Open your Binance App and login in with your username and password
- Step 2
You then click on Savings on the pop up menu.
- Step 3
Select Locked on the dashboard on the top part of your screen and click on your preferred token coin to save.
- Step 4
You select the duration and enter your preferred amount in the Lot Amount section. After that select either to use your remaining principal and interest to subscribe to flexible savings or not and accept the Terms and conditions. Then lastly click on Confirm Purchase.
Thanks for your time and attention.
Thank you for being part of my lecture and completing the task!
My comments:
Nice work!
The first task was really good, as you shared your experience and I always appreciate that! :)
Second and third task were fine as well!
I really liked the fact that you paid attention to markdowns, it's really importante!
Nice work!!
Overall score:
6/10
I'm very grateful for your review. Hope to improve in my subsequent assignments