Hi, girls and boys, welcome to Uncle Cat Talking about Coins.
The delay has become more serious recently, so tonight I will give you a make-up article on how to optimize venture capital and risk hedging.
First of all, I want to make it clear that the risk hedging here is not the so-called hedging that is addicted to contract gambling. I understand that many people regard contract hedging as a way to expand profits. I have always wanted to talk about this issue, but I don’t know where to start. I would like to take this opportunity to talk to you about it.
First of all, cryptocurrency is a high-risk investment category, and contracts are even more risky in this risky investment category. Everyone should admit this! The core of hedging is also to reduce risks, but many people blindly use it on contracts, and the results are predictable.
Risk (cryptocurrency) + risk (contract) + risk (hedging) = liquidation to zero!
The emergence of contracts is to provide a way of hedging in the market, but it makes more traders who dream of getting rich overnight regard it as an opportunity to take a gamble. Using hedging only makes their greed continue even more.
In fact, there is nothing wrong with trading itself, but human nature is wrong. We admit that human nature is good, but as we grow up, the evil in human nature will expand. Especially when you are alone, the joy of victory brings greed, the pain of failure brings extreme paranoia, etc., which are the core factors of liquidation.
In fact, whether it is conservative investment, medium-risk investment or high-risk investment, in fact, ignoring the risk, it is all investment, and investment is to manage your assets reasonably, which is very important. Investment is not achieved overnight, but a cyclical process of wealth growth. You should make value investment rather than price investment. A very important point in investment planning is to consider that you should divide your assets according to your risk tolerance, and then choose the right products to invest and obtain returns.
What we are going to talk about today is the real hedging method that can relatively optimize risks in venture capital - dual currency investment.
Make an argument:
In the crypto market, the risks of investing in BTC, ETH, and BNB <ordinary altcoin spot investment <BTC ETH, BNB contracts <altcoin contracts. If you agree with the above views, please continue reading.
Dual Currency Investment Model:
Double-ended investment is an investment method that increases interest rates and does not protect principal but provides high returns.
To explain, increasing interest rates is a way to compound your cryptocurrency assets and grow cyclically.
This is a comparison between non-principal protection and high returns and normal spot trading. Of course, you can also say that you can start a small copycat and catch golden dogs, but this is a small amount of capital. But if your capital is magnified ten or a hundred times, do you dare to do it?
According to the viewpoint I have described above, when you choose the crypto market, you must be mentally prepared that it is a high-risk market. In the high-risk investment market, many people often dare not invest too much money, and the returns of fixed investment in BTC.ETH are not that high, and the periodic returns will also shrink due to fluctuations. Dual-currency investment is one of the core solutions to this problem. By using hedging, optimizing risks and reducing risks, the returns are higher than normal spot transactions, the operation is simple and convenient, and more time for watching the market is saved.
There are two functions of normal double-head investment: hedging strategy (optimizing risk) and arbitrage strategy (evaluating the market and buying low and selling high at the right position).
In fact, dual-currency investment is difficult for many ordinary traders, including judging strategies, making plans, choosing currencies, etc. However, Binance has launched its own new product - Binance Dual Currency Investment. It is more convenient, simple, and stable, saving traders a lot of trouble.
Binance Dual Currency Investment:
Binance users can earn higher yields on their deposited currency, or convert to another asset at a more favorable price and earn higher yields on the new currency.
At the same time, participants can continue to obtain profits through buying low and selling high transactions.
The reward is converted into the deposit currency or target currency, and the profit + cost is invested continuously, thus achieving stable compound interest.
The people who are suitable for dual-currency investment and the investment advantages will be introduced to you in the next article. This article is just a preface and a brief general introduction.
Related Binance Dual Currency Investment website: https://www.binance.com/zh-CN/dual-investment
You can check and study it on your own first.
Everyone needs to pay attention here that Binance's dual-currency investment is based on currency, so if you choose dual-currency investment, you must first recognize the value of a certain currency. As I said above, make value investments rather than price investments.
I think the more suitable choices are: BTC, ETH, BNB,
Of course, when you get used to it or become a professional trader with more time, you will have more options and can choose according to your own circumstances.
Finally, to sum up, dual-currency investment is more suitable for low-popularity and low-volatility markets. Many people often hold BTC ETH spot, and now all they can do is wait for the bull market to come. Smart people will use the compound interest of dual-currency investment, or convert it into another value token. Even in the current low-liquidity market stage, it is still possible to achieve an annualized return of 4%-20%, and this is only the return of dual-currency investment. If the token appreciates during the period, the return brought by the token itself plus your annual return will be doubled. This is the charm of dual-currency investment.
Optimize risks, hedge reasonably, and earn double compound interest on your coins.
At the same time, I’ll tell you a secret: if you participate in Binance’s dual-currency investment now, you’ll have a chance to share a BTC reward worth $30,000.
You guys study it first, I'll go down and grab some! Hehe
In the next article, we will deeply analyze the advantages and applicable groups of Binance dual-currency investment, and also provide everyone with a reasonable asset allocation and investment allocation plan.
This is Uncle Cat Talking about Coins. Thank you for your attention. The next article will be even more exciting!