Crypto Academy Week 10 - Homework Post for [fendit]- Generating Passive Income with cryptos

Introduction
A lot of opportunities are open in the world of cryptocurrencies, investors could buy and store their coins hedging on the volatility of cryptos, while some people are active traders, some investors prefer to play the long term card while collecting passive income from their staked coins.

In this Read I will explore opportunities and how you can exploit them, that's of course if your risk aversion suits them, Well, let's talk about mine...

My Risk Aversion
Risk Aversion is an investor's willingness to take a definite and sure path to profit rather than making higher-risk investments with a 50/50% chance of success and profit. This means that a risk-averse investor or trader will always prefer to stay away from high risks investment choices and will always prefer investments that will provide a sure shot return.

This subject is especially important due to the volatility of not just the crypto market, stocks, and bonds also. It's really a tough call for investors to make, but at the end of the day, people do what they are comfortable with like me.

• My Risk Aversion- So after analyzing my investment choices since I came in contact with the crypto-verse, I realized a have always been a Moderate tolerance to risk risk kinda guy. According to @fendit:

Moderate tolerance to risk- This type of investor does accept a higher amount of risk and volatility in the assets they invest.

This has been true in my case, though I cannot point accurately some times where the market could go, I always have a Moderate absorber to risks and dips in the market and this has kept me in the game for so long.

So after analyzing and understanding my risk aversion, we talk about the opportunities open for investors looking for passive income with their funds. Let's consider 3-

• Fixed Savings
• Flexible Savings and
• High-Risk Products

Fixed Savings

Staking on Binance is one of the easiest ways to generate passive income with your coins sitting ideal in your wallet.

In Binance Fixed savings or lock, savings is a type of savings where your savings or locked crypto cant be redeemed anytime you want but with a higher interest rate when compared with Flexible Savings. Fixed Savings can last between 7- 90 days in duration. Fixed Savings is more like a fixed deposit bank when compared to traditional banking.

Binance Fixed savings or lock supports the staking of just 3 stable coins,

• USDT
• BUSD
• USDC

How to set up your Fixed Savings Plan
You can start staking and earning crypto using these simple steps-

• Login to the Binance website
• Click on Finance as noted with a red maker- Binance Earn.

• Click the Fixed Terms to start and View more for more information.

• A list of Fixed savings contracts appears.
• Select the asset you wish to stake or lock.
• Select the duration and click on Transfer.

• The next step is to fill in the amount of USDT or any of your preferred choice.
• Read and Accept the terms of the contract and click Transfer Confirmed

Note- Please ensure that you have a sufficient on your spot wallet (not in open orders and or in your Margin account). to fund your Savings Plan.

• Funds will be transferred from your spot wallet and deposited on your Earn wallet.

Flexible Savings

is very flexible since

Flexible savings is a type of savings where your savings can be redeemed anytime you want but with a lesser interest rate when compared with Fixed Savings. Investors can save and close their savings contract in a matter of hours or minutes as they choose. Flexible Savings could be considered as a savings account in the present banking system.

How to set up your Flexible Savings Plan

• Login to the Binance website
• Click on Finance as noted with a red maker- Binance Earn.

• Click on Flexible savings as shown in a red marker.

• Select the asset you wish to stake, you can explore and stake 58 different assets.
• Automatic subscription function can be enabled on the Flexible Savings page.

Note- Please ensure that you have a sufficient on your spot wallet (not in open orders and or in your Margin account). to fund your Savings Plan.

• Enter subscription amount and Confirm transfer.
• After confirmation assets will be transferred from your post wallet to your Earn wallet.

High-Risk Products

Binance high-risk products are more complex when you consider the easy nature of flexible and locked savings, however, High-Risk Products come with their own benefits and surely an enticing offer for risk lovers.

Dual investment enables investors to earn on their stake even if the market condition tips either way. Binance High-Risk Products lets you deposit an asset and earn yield based on two assets no matter whether the price rises or falls.

The returns you get are dependent on the results of your bet at the expiry date. Dual investments allow you to generate yield despite the market conditions, How and What happens when the price goes up or down.

Uptrend	Downtrend
If the settlement price is higher than the strike price due to an increase in price, the product is settled in BUSD with interests attached	If the settlement price is lower than the strike price due to price plummet, the product is settled in BTC with interests attached also.

A bitcoin holder with assets staked on Dual investments can experience either of the following depending on Markert Conditions.
Let's say a BTC holder enters a contract on Dual investment at the price of $60,000 with a contract duration of 30 days and 5% interest. The strike rate is set at $65,000, one of the two can happen depending on which side the price tips.

Uptrend Usecase	Downtrend Usecase
If BTC rises above $65k and gets to 70K, the investor will now have his 1BTC paid out in BUSD and an additional 5% interest worth 3,500, which is equal to $73,500	If BTC falls below $70k, the investor gets his 1BTC and an additional 5% interest worth 0.05, which is equal to 1.05BTC

This is basically how everything works and it's a win-win for everybody.

Binance LaunchPools

Binance LaunchPools is really a smart way of generating passive income for yourself by providing liquidity and exposure to a project you believe really be a game-changer. You can stake your asset and farm or mine the native token of the project while the launch is active.

Launchpool allows investors to leverage their staked assets as a cost of getting new tokens. Your farmed tokens can be redeemed anytime and anywhere.

Steps on how to join a Launchpool and farm new tokens

• Go to the Launchpool official page.
• Select the pool that you wish to stake tokens in, in this case, we using BUSD to farm TLM.
• Input the number of tokens you’d like to stake.
• Click on Done and it's Done!!

Note-The amount of tokens you earn each daily is proportional to the number of tokens you have subscribed to the pool vs the total number of tokens subscribed to the pool.

Conclusion

based on my risk aversion and the kinda risk I am willing to take, I believe Launchpool is my best project, because of how simple and very profitable the setup is. This is one major product I will surely dive into in the future, maybe now lol..

Introductory Video to Binance Earn products