Financial Services popular among Crypto Exchanges!

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Among the various services provided by the vast majority of Exchanges, in addition to the purchase, sale or exchange of cryptocurrencies and tools for the technical analysis of asset markets, among others, there are options that allow generating passive revenue with funds in Possession of users, which is an attractive alternative to the possibility of leaving them "inactive" in a wallet.

Of course, the yields that could be obtained by making use of these investment options, vary depending on the level of exposure to the risk that each inventionist is willing to run. Among these instruments that these platforms offer their users, the following stand out:

Flexible savings
This option allows you to generate income while the cryptocurrency "freeze" or "block", in a process known as "Staking" during a period of not determined, during which the user can rescue their funds when desired.

It is an alternative of low risk investment, therefore the yields are not high, however, it is recommended for investors with a low level of risk tolerance. This modality can be considered similar to the savings accounts offered by the institutions of the traditional banking system.

Fixed savings
This modality of savings, unlike the previous one, offers greater yields because the freezing or "staking" period is for a given period of time, during which the user can not withdraw or redeem their assets until the expiration of the deadline , after which, you can freely dispose of your funds or agree new conditions for renewal.

Launchpool
It is a financial instrument that allows investors to lend their tokens to new projects that are in the stage of development with the purpose of providing them with funds, during a time lapse called "Farming".

The performance obtained by the investor is an amount of tokens proportional to those that it has subscribed to the pool, against the total amount of tokens that all users have contributed to said pool.

Crypto Loan
As in the traditional banking system, the Crypto loan is a financial instrument that allows users to obtain additional funds to operate in the market, placing their own assets as Advance or guarantee.

Liquid Swap
This instrument consists of a liquidity fund developed under the characteristics offered by certain decentralized finance projects (DEFI), where users provide two tokens in each pool, and the amount supplied by each one determines the price between them. As a reward for providing liquidity to these pools, the user obtains variable interests in the form of more tokens of the liquidity torque he selected.

High risk products
As its name indicates, some platforms offer their more daring users, financial products that allow them to obtain signuries significantly higher than those previously listed, although they undoubtedly have a higher risk due to volatility in asset prices, and which, no It is a secret for anyone.

In addition to the options mentioned above, Exchanges usually offer competitions and rambers with cryptocurrency rewards that seek to reward the loyalty of their traditional users and attract new ones.

Volatility
Volatility is the term that measures the variations of prices or the profitability of an asset, either stock market or cryptocurrencies, with respect to its average for a given period of time. It is expressed as a percentage and is calculated as the standard deviation of its yields.

The main factors that can affect the volatility of digital assets are the following:

News or events that can alter the market. Rumors or statements of certain characters that can affect the perception of investors about market stability. The regulations that some states apply to operations in cryptocurrencies are also included.

Flock effect. Faced with a sudden movement in the price of assets, many investors with little experience decide to get rid of their positions, causing a cascade effect that enhances the decline.

Liquidity and size of the market. Liquidity is the ability that an asset has easily become money. For a high liquidity, there must be sufficient buyers and sellers who seek to exchange their currencies, and if there are few people willing to buy or sell, the quote will experience a significant change.

Posted Using LeoFinance Beta



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