Hello, everyone. I am a data-oriented trader who has experienced both bull and bear markets. I believe that cycles are above all else and I pay attention to the information that truly affects investment decisions.
In the capital market, there are certainly not many speculative opportunities in a bull market or a bear market. There are more oscillating or consolidating markets, especially those that fluctuate slightly for a long time. For example, some stocks in the currency market can remain unchanged for months or even a year without volume. How should investors deal with such a market?
The recent volatile market is actually very difficult to make money, especially under the influence of interest rate hikes, the market may fall at any time, while on the other hand, the U.S. stock market has set new highs, but the broader market has not followed.
Bitcoin has not seen any market movement for almost a month since it broke through 30,000 on June 22. It has failed to reach 31,000 10 times in a row and has always fluctuated around 30,000. At this time, it is difficult to make money in the market whether you hold spot or do trend trading.
So how do we judge the market volatility? I have sorted out some market rules for your reference.
Prices usually trade within a certain range of support and resistance.
On the K-line chart, Yin and Yang lines appear alternately.
The volume expands and shrinks irregularly
The position volume often experiences a regular pattern of "shrinking, balancing, and increasing positions":
The moving average tends to be flat and entangled.
Compared with the holding volume, the trading volume has the characteristic of gradually shrinking
So at this time, do you choose to wait and see with an empty position or hold a full position of coins? Have you ever thought that there is actually another option that allows you to continue to make profits in a volatile market?
In Binance’s financial management section, there is a product called “Interval Income Treasure” which is specially designed for such market conditions.
So what is interval income treasure?
An investment product that has the opportunity to obtain higher returns during market consolidation. If the price of the selected digital asset remains in the selected price range during the selected period, there is an opportunity to earn relatively high returns. However, it should be noted that if it rises out of the range or falls below the range, a loss will occur.
What is the applicable market situation for Range Income Treasure?
When the market is consolidating and the market is constantly fluctuating within the box, the Range Income Treasure may be a great product to earn income. As long as the price is within the time and price range you choose, you can get income. But there will also be certain risks.
If you are a coin holder: For example, if you invest in BTC in the range treasure, you can continue to hold it in the consolidation market and earn additional coin-based income
If you hold U, for example, you can invest USDT in the range treasure and continue to hold it in the consolidation market while earning additional currency-based income
Since the Range Income Treasure is so good, will there be losses?
Yes, but fortunately the maximum risk and loss ratio will be marked on the product, and you can set the corresponding parameters according to your risk tolerance. If you want to get higher returns, the risk will also be higher.
For example, in the following figure, the Bitcoin range is set to 29,000-31,000. If the price exceeds the range during the selected period, if you invest 1,000U, you may lose the corresponding risk subscription amount, which is 1,000*0.5%=5U.
In addition to the possible losses that may occur if the above range is exceeded, the subscribed assets will be locked and cannot be cancelled or redeemed before the settlement date. This is also something we need to pay attention to.
How to participate in the investment of Range Income Treasure?
1. Log in to your personal Binance account and click [Wealth Management] - [Interval Income Treasure].
2. Select a digital asset (BTC or ETH), choose the price range, estimated annualized interest rate and settlement date that suits you. Click [Subscribe].
3. Enter the amount you want to purchase. You can purchase with stablecoins (USDT) or tokens (BTC or ETH).
4. Select the estimated annualized interest rate you want to receive at the end of the subscription period. The higher the annualized interest rate, the greater the risky subscription amount. As shown in the figure, you should pay special attention to the [risky subscription amount], which is the risk we will face if we exceed the range.
Finally, agree to the "Service Agreement" and check the confirmation box next to it. Click [Confirm] to apply for purchase
The above is a detailed introduction to the Range Income Treasure. When investing, everyone must pay attention to investing according to their own risk preferences. Do not blindly pursue high returns and ignore the risks that high returns may bring.
If your risk appetite is low, it is recommended that you choose parameters that are close to expiration and have a larger price range. Although the returns are lower, the risks you face will be greatly reduced.
Another piece of news is that Binance is celebrating its sixth anniversary: Subscribe to dual-currency investment or interval yield products to receive 6 USDT tokens. The event will end on August 2.
If you have any questions, please leave a message in the comment section.