Steemit Crypto Academy Week 10 - Homework Post for @fendit by @micheal432

Before we can understand Risk Aversion. We need to grab the understanding if what risk is. With that it will help us to understand and answer the homework task .

Risk can be defined as the possible adverse event or outcome while aversion means the act of turning away from an object, By both definition we can say that

Risk Aversion

Risk Aversion is the act of turning from a possible adverse event or outcome.It can also be defined as the behaviour of who,when it comes to uncertainty, will always find a way to lower the uncertainty.Sometimes it is not always the risky solutions that brings the best reward but the best option to take to the safest route.

The biggest risk usually comes with the greatest reward.Risk-adverse people are happy to reduce their potential gain if they can reduce the risk that is involved in a deal.Taking risk has both the good and bad sides because taking risk sometimes is the bestbthing an individual could do to attain the greatest height and sometimes it can be the opposite,but what is life what risk.

Risk Aversion is commonly related to trading and investing.As we know that there are a lot of trading platform in the world (crypto currency) and each of them has their own risk which are higher than the other.For example,I can say that Bitcoin has more risk Aversion than Ethereum because it tends to be more stable than Bitcoin according to some research, Bitcoin has solely based in monetary system while Ethereum is focused on monetising smart contract.

Though we could say Bitcoin has more investors than Ethereum but the Ethereum family always put their users in an condusive rank where by the user's behaviour is observed and also tends to have more stability as they are optimistic of the market while the of Bitcoin users are unstable with the market trend as they are pessimistic when the value reduces.

Why Ethereum is my Appealing Product

This makes Ethereum to be more appealing and we have a low risk than that of Bitcoin.

Talking about risk Aversion,there are similar risk that are involved in Binance,Binance savings is a financial product allowing users to benefit from a competitive interest rate which involves transfer your crypto to a Binance savings wallet to earn profit and your deposit can be redeemed at anytime.

With this explanation, this will move me to explained what flexible and fixed savings are below.

What is flexible savings

flexible savings is a platform in binance saving which enable users to lend and gain interest.With flexible savings,deposit can be made and your crypto currency can be redeemed at anytime.

What is fixed savings

While for fixed savings it involve having a flexible deposit and higher interest than that of flexible which means if an investor do not want to engage in risk he would embrace risk Aversion by getting a flexible savings.

Fixed savings is also called Locked savings which means you won't be able to redeem your coin at anytime until the stipulated time given.. stipulated time like 7,14,30 or even 90 days.This savings have a lot of profit than flexible but the risk rate is very high in which if there is a drop is a crypto coin invest the day you are to redeem it ,it might lead to heartbreaking.

Not only that, there are what we call high risk product and launch pool on binance which I will also explain below

What is High risk product

In high risk product consist of defi staking,dual savings and liquid swap all these products having the risk of affecting the users and not the platform if any error is made, For a defi staking which is way to use allows the users to participate in some specific defi product an d earn an high rate exchange at last but because binance is a decentralised company which is not regulated all risks are to be earned by the users.

What is Launchpool

For Launchpool, it allows users to farm assets and they will be allow to acquire new token rewards for staking BNB and other token.

Between the high product and launchpool it is clearly for investor that the risk Aversion where is the launchpool,low risk and still there's reward irrespective but the other way round for the former.

Binance is the number one exchange listed in coin market cap.To set up a ripple in a binance ;

I will be sharing with you the screenshots after that I will explain what the screenshot means relating to the steps

1)Find the correct domain like(www.coinmarketcap.com)for the correct URL.

1. Create a new account:This involves sign up like inputting your email, creating a password,refferal ID and so on.

3)Get a Tutanota email by visiting ( www.tutanota.com) this can be skipped too

4)Check your registered email for the verification of the account and also click the agree the terms and conditions which after it will show some guidelines like not disclosing your password to anyone and so on.

1. After accepting the necessary condition click on the word "Binance" on the screen usually at the top left and it will direct you to exchange where you could view many coin that can be exchange for Bitcoin like Ethereum, Ripple and the likes.

After clicking on your preferred coin which is ripple choose on the list the exchange you want like USDT,BUSD,BTC,EUR and so on.if you click XRP/BNB then it will show you a diagram

To buy an XRP it means you must have a. BNB coin and vice versa and note that the exchange rate changes for every seconds which shows it is volatile.

Binance has help a lot of investors to trading and sell their coin,it has made users gain a lot from the platform.

Buying XRP is a form of investment for Me because I can see the price so volatile rising and falling which can pave way for you to earn higher roi on your investment

@fendit