Steemit Crypto Academy Homework Task Week 10 Post For @fendit.

It is an other opportunity for me to learn on steemit platform in steemit crypto academy with fully explained lecture by respected professor @fendit.

I have tried my best to understand and deliver the questions asked by the professor.

For investment in crypto currencies we have profit and loss and all traders/investors just think about profit first and then loss. So if we observe volatility of market to invest for more profit, it will be suitable for everyone.

a- Which is your risk aversion...................appealing and why:

Risk aversion means to take risk during investment at various levels.

There are three levels of risk aversions, that names are following.

1. Conservative tolerance

2. Moderate tolerance

3. Aggressive tolerance

Conservative tolerance:

In conservative tolerance, investors are ready to invest for guaranteed profit because of low volatility and feel confidence on their trades.

Moderate tolerance:

Mostly investors take high risk in this type of risk aversions as high volatility is concerned.

Aggressive tolerance:

It is very risky investment as the highest volatility is accepted by the investors and they collect high return or loss.

As professor explained well that the more you risk, the more you get or the more you loss.

I like the most conservative tolerance as there is guaranteed profit and less chance of loss because of low volatility.

b- Explain in your own words...............and launch pools:

Launch Pool:

Binance platform provides us new projects that are advertised to promote them. In this way, tokens are distributed among those who take part in any project, providing liquidity at farming time ended.

For this above purpose, we need Binance token launch platform. Where we can stake in BUSD or BNB purchasing liquidity for taking part in new projects tokens distribution.

There is also an option that explains token amount as (Total Reward) and (Farming Period).
As you can see in screenshot in red circle below.

APY (Annual Percentage Yield) option is too available for better assessment for investing and getting higher return.

When you take part in staking once, then you can not drawback your fund until end of the farming.

Many other platforms in many exchanges are available for this purpose, for example, PancakeSwap and SushiSwap.

But there is one thing that Binance exchange gives backup for new project as compare to other platforms.

High risk, products:

These products are so high risky as the name shows itself. If you want to invest in these high risky products, it means if you lose much then there is possibility to get a huge profits.

Dual-Investment:

If a person invest in two coins, he will receive interest according to APY ratio based on two crypto currencies. This way of investment is too risky as market volatility. This is considered as aggressive risk tolerance.

What is staking?

Staking is a good option for investment to earn passive income in various listed coins. Binance provides us two kinds of staking in which you can earn through flexible savings and fixed savings.

Flexible savings:

In this kind of savings, you can stake your coins for profit according to the APY ratio of that coins. You can also take them out for other purposes during flexible savings at any time but you will earn low income in this way.

Fixed savings:

You can earn higher passive income through fixed savings as you have stake your investment for specific period of time. You can not take your coins out untill your chosen time is not ended.
In Binance, there are various options to stake for the period of 7days to 14,30,60 and 90 days. If you stake for specific time period the APY ratio increases and you will earn higher.

On the other hand, you can not sell or transfer nor stop your coins to loss so you must keep these drawbacks in your mind before staking your investment.

Binance provides this kind of platform on which you can invest for staking to earn passive income.

c- Show and give detail on how to set..................investing in binance:

First I will go to main bar of Binance exchange and find "Finance" to click on this button I will select "Binance Earn"(one stop investment solution) and after that I will be able to select the options in which I would like to invest i.e flexible savings, fixed savings and high risk products. After selecting my choice I will go to transfer button of that coins in which I am going to invest but before investing, I have to purchase that coins for investment from the market.

I will invest my amount in flexible savings as it is secure to me for earning passive income although there is low income but I can take my coins out whenever I want to see the volatility of market.

Conclusion:

If we want to invest for passive income then Binance platform is excellent and we should keep all the above three types (conservative tolerance, moderate tolerance and aggressive tolerance) in our mind for staking. We should also keep an eye on the volatility of market to earn better.

I offer my gratitude to the steemit team and respected professor @fendit for selecting such a nice topic for investors guidance.