With the resurgence of panic, how can investors respond rationally and protect their investment funds?

2022-06-17, 07:18


Gate.io, one of the world’s leading cryptocurrency exchanges with over 10 million users worldwide and a wide range of tradable assets, is going to add ETH to its Structured Products, therefore expanding its list of derivative products that allow users to gain passive income.

In the last few weeks, the cryptocurrency market has been undergoing a major retracement. There have been quite consistent waves of panic sells, and the value of the cryptocurrency market fell below $1 trillion for the first time since January 2021. Bitcoin's price has also returned to its December 2020 / January 2021 levels, which is causing a lot of concern among investors. Now the crypto community is afraid that the $ 20,000 support will be broken and, if that happens, the entire market will suffer another huge blow.

Many crypto hodlers are maintaining their positions anyway, which is a good sign. During these difficult times, a good strategy could be to research financial products of passive incomes, so that you can balance the temporary losses in value of your assets. A good example would be Gate.io's Structured Products.


What are Gate.io Structured Products?



Gate.io Structured Products are pre-set products that include assets linked to interest and derivatives. The return rate is established by comparing the price trend of the underlying asset with the price linked to it, over the investment term. There are different types, from the safest to the very risky ones. These products are usually regulated only on expiry, without early settlement and the specific rules vary depending on the type of product. In a nutshell, their functioning depends on the relationships between certain price limits of a currency and its price variation over a pre-set time frame.

The name given to these particular financial products is ‘Shark-Fin’, because their yield curve structure is similar to a shark fin emerging from the water.


There are four types of Shark-fin products:

  1. Weekly
  2. Daily
  3. Bullish
  4. Bearish

In the past, the only two supported currencies were BTC and USDT. Gate.io has listened to the requests of the users and, from now on, ETH will also be added to the package.

Gate.io has launched ETH Structural Financial Products, and the sub_script_ion time is from June 17 to June 19. Currently our available products are as follows:

ETH SharkFin:
https://www.gate.io/structured_financial/sharkFin/188?ch=jsethb

ETH Bullish Sharkfin:
https://www.gate.io/structured_financial/sharkFin/189?ch=jsethb

ETH Bearish Sharkfin:
https://www.gate.io/structured_financial/sharkFin/190?ch=jsethb



Why Should You Choose Gate.io Structured Products?



Structured Products can surely meet the needs of multiple types of investors. They were created with the aim of offering investors the opportunity to still obtain passive income, without risking their initial capital.

In fact, Structured Products allows you to get:

  • High yields
  • Portfolio diversification
  • Ease of sub_script_ion
  • Safety

Safety is a key feature that has always distinguished Gate.io. In fact, our team of experts continuously carry out risk checks and, above all, closely monitor the sustainability of our products.

Read this article for more detailed information.


Structured Products as a Protection Against Volatility



These types of products are considered to be a useful tool for countering excessive volatility in the markets. It is true that, as a holder, if the price of your asset is falling, there is not much you can do. But, on the other hand, using Structured Products you can secure income that will mitigate the momentary losses caused by a downturn.

If you can read the market movements carefully, you may be able to earn the maximum profit from one of our offered products. Daily trading is not an easy thing to do, not everyone is capable of doing it efficiently. Therefore, the best thing to do is to use pre-made products.

These days are very tough for the cryptocurrency market, as many people are liquidating their positions to exit in fiat money.


What is happening in the cryptocurrency market?



The price of Bitcoin has been falling for the past nine days in a row, and is dragging all the other cryptocurrencies with it. The downtrend moment had already begun a few weeks ago, but other factors have contributed to accelerating the process of falling prices.

First of all, the general uncertainty and the difficult geopolitical situation. Inflation is advancing dangerously and the Federal Reserve is raising interest rates for the third time this year, causing panic among investors.

Second, there is a lot of fear around the Ethereum ecosystem, caused by the slight de-peg of stETH, making many people believe that Ethereum will suffer the same fate as the Terra (LUNA) project, which has had a very strong impact on the crypto sector.

Important to underline: it is not the first time that the market has suffered these sudden drops, it has already happened many times. It has always managed to get up and get stronger than before. Will it be able to do it again this time?

Image: BTC/USD,Source: TradingView


Closing Thoughts



As already mentioned, the collapse of Bitcoin caused very heavy losses for all other coins. During the weeks leading up to the final dump, Ethereum had managed to maintain attractive price levels. Many investors believed that ETH could lead the recovery of the entire altcoin sector, but ultimately had to give up on the general decline in prices. This is to highlight how important it is to know the trends and their changes, a very useful tool to adapt your strategies to the market.

Gate.io’s Structured Products can be an excellent return tool when the market is in high volatility. They have been specially designed to use trend changes to our advantage, without the need to open excessively speculative positions. It would really be worth taking a look at the new products on Ethereum, as this cryptocurrency has drawn a lot of attention to itself. Indeed, this is a crucial period for its future. On the one hand it is true that its price has suffered a lot, but on the other hand, it must be said that great technological developments are on the way, so a price recovery could soon take place.





Author: Gate.io Researcher: Mauro F.
*This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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