Inventory of mainstream products in the digital currency wealth management market

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This year, under the leadership of Bitcoin and DeFi, the performance of the digital currency market can be described as crazy. At the beginning of the year, Bitcoin plummeted to around 3800 points. Then DeFi led a new market wave. A large number of related assets fluctuated sharply in a short period of time. In the recent past, Bitcoin has changed from the downturn at the beginning of the year and began to continuously hit new high prices. The unpredictable market has brought countless opportunities for investors, including the financial market.

According to the data report of Pence News Agency, digital currency is currently the one with the highest appreciation space for investment and financial management, with an increase of up to 70%, while the highest increase in traditional finance is 20%, which is far ahead of the entire financial investment industry. Recently, Bitcoin broke through the 24,000 mark. Although it has fallen slightly, it has made a large number of long-term Bitcoin investors firmer in their beliefs. Even some gold ETF investors are also considering Bitcoin as gold. As alternatives, as the demand for digital currency investment and financial management has soared, the major trading platforms in the currency circle are also doing their best to provide more diverse digital currency financial products to grab market share.

Today we will sort out the most common types of wealth management products for novices on the market, as well as the points to pay attention to when choosing digital currency wealth management products.

Baby financial products

Baby products refer to users who can transfer idle digital currency assets. Products similar to Yu’ebao have appeared in the market since last year. They are favored by the market due to their simple operation and high flexibility.

Baby products usually have the characteristics of deposit and withdrawal, daily interest calculation, high flexibility and low threshold. They are the most basic financial products, suitable for novice financial management. Products in the early market will have a deposit limit, which can only meet the robustness requirements of some large households. In this year’s market, baby products have gradually lowered the deposit threshold and become more universal. However, the annualized rate of return of baby products is relatively average, and is usually related to the platform’s leverage and other businesses. There is a certain degree of uncertainty, and individual platforms may have the problem of overlord clauses. Users who want to try such products can choose a large platform with a good reputation.

Staking holding coins to earn interest

Since 2019, the staking economy has risen rapidly, and it also has a high degree of popularity this year. Staking is in the POS and POS-like consensus mechanism, earning income through equity pledge lock-up. The source of income is mainly the digital asset system. Inflation mechanism, holding currency to earn interest is the most important application. In addition to mainstream currencies such as BTC, platform currency and other small currencies can participate. The rate of return will vary depending on the platform and currency. Although the benefits are higher, However, the flexibility is poor, and users usually need to face the risks of Token depreciation and project runaway during the currency holding period.

Cloud computing power mining

Cloud computing power mining is an investment form of indirect mining in which users obtain cryptocurrency income by purchasing computing power. For users, purchasing a cloud computing power contract requires payment of computing power and electricity. The computing power is a rental fee. The electricity fee includes electricity, mining machine operation and maintenance, heat dissipation and other operation and maintenance costs. When the currency price rises, it can be Recover costs within time and earn revenue. Profit is positively correlated with miners’ direct mining, but the profit space is different under different market conditions.

The threshold of cloud computing power mining is low, which is more suitable for small white users. The market opportunity of cloud computing power mining is to provide individuals with a more “neutral” investment method. The threshold is lower than self-built mines and the risk is lower than short-term Operation, the cost is lower than the market price; it also allows the mining farm to share the cost and risk and obtain a more generous cash flow. However, compared to directly participating in mining, the cloud computing power also reflects the following disadvantages: even if the platform fully displays the mining farm, mining machine, For cooperation, team and other related information, it is still difficult for users to judge the quality of the computing power behind the platform, real-time operating conditions (such as whether there is a power outage, site inspection) or real income data, so the main risk of cloud computing power lies in the truth of the computing power behind the contract Sex and stability.

Index funds

Digital currency index funds apply the strategies of index funds in the traditional financial market to the field of digital currencies. By purchasing digital currency index funds, investors can indirectly hold digital currencies without directly buying digital currencies, and closely track changes in the index. Enjoy index returns.

Index fund transactions are convenient and the threshold is low, allowing investors to access more digital currencies within their capabilities, and adjust positions in a timely manner to deal with risks according to market fluctuations, but the professionalism and maturity of the quantitative team behind this type of product needs to be According to research, non-standard and opaque is also one of the biggest ills in the market. Choosing an index fund may have a considerable return rate in the long term, but it is necessary to choose an investment platform carefully.

Select the core elements of digital currency wealth management products

There are many wealth management products in the current market, especially in the DeFi field, but they are generally new products under a certain category, and the gameplay is similar. The above-mentioned are all novice-friendly wealth management products. Investors cannot just because of simplicity and convenience. And to choose at will, in addition to understanding the pros and cons of financial products, issues such as yield, liquidity, and security all need to be considered.

Yield is the most concerned factor for most investors. Based on the fact that a large number of wallets are running off the road, projects with too much higher than normal returns are often worthy of vigilance. The yield rate of the digital currency industry is much higher than that of traditional finance. However, if the annualized return exceeds 10%, investors should pay attention to the project credit risk . Such as the collapse of the PLUS wallet, its ultra-high yield has been named several times in the industry, but investors still cannot resist the temptation.

Second is liquidity. Liquidity is determined by several factors. Exchange wealth management tends to be more liquid than wallets and wealth management platforms; short-term and current wealth management are often more liquid than long-term and regular wealth management. The digital currency market fluctuates violently, and there are often sharp rises and falls. Based on this, liquidity has become an important factor in choosing wealth management products.

The most important point is the security issue. The high rate of return, the opaque team, and the focus of operation on market speculation are common signs of security issues. I hope investors can choose investment products and platforms carefully and invest rationally.