Although the sharp price movements in Bitcoin and altcoins excite investors, it is not easy to catch these movements.
Many of us have looked at the sharp movements in the charts and said, “If I bought here, I would have earned this much if I had sold here”. However, believe me, there are very few investors who can catch the range you dream of, buy from the most ideal place and sell from the most ideal place.
When we look at the price movements in cryptocurrencies, we see that the price has risen sharply in a short time frame and entered a long horizontal range.
As investors, our desire to make “easy money” leads us to that narrow time frame where sharp price movements are experienced. Not being able to catch that short interval often results in frustration.
So, can we make money without chasing the narrow timeframe where these sharp rises are experienced? How are most of you going to make money in the horizontal market? I can hear you say. Then let’s take a look at the “Binance Earn Range Bound” product that Binance introduced in March.
In fact, we see a long period of sideways movement in Bitcoin and altcoins after the deep bear markets. This process usually continues until Bitcoin’s next halving. Since this product, which was introduced by Binance in March, is quite suitable for the current cycle of the market, it is useful to listen and try it.
Below we’ll cover a lot of information and scenarios related to the “Binance Limited Range” feature. Happy reading and good luck.
What is Binance Earn Limited Range?
Limited Range is an investment product where you can earn high rewards by predicting the range in which Bitcoin or a selected altcoin will move in a sideways market.
There are certain subscription periods and you have to guess what range the price will be during that subscription period.
If the price stays within the price range you choose during the subscription period, you will get your money back at the end of the subscription period and you will be rewarded according to the rate of return you choose when subscribing.
If the price goes out of the lower and upper price range that you set during the subscription period, or if the price touches this lower and upper band, then you will receive less money than you invested according to the risk category you have chosen and you will not be entitled to any reward.
Our Case Study
Let’s explain with an example and look at the return and risk situation.
Let’s say we think the price will move in the range of $26,000 to $29,000 until May 31, 2023.
On the Binance Range Bound page, I mark 31.05.2023 from the settlement dates and find the price range I want and press the join button.
I choose which cryptocurrency I want to participate in.
I choose USDT for a $100 trial. If you want, you can also join with Bitcoin. If you join with Bitcoin, you will still receive your money in BTC at the end of the contract.
I enter the participation amount and choose the rate of return I want. Here, you should not forget that the higher the rate of return, the higher your risk.
In this example, when I select the 120% return, the participation amount at risk increases to 5%. If I choose 10% return, this risk is reduced to 1%. Again, keep in mind that these rates of return are annual and are calculated based on the day you stay within this subscription period.
If I approve this operation, the system will work as follows.
If Bitcoin price moves between $26,000 and $29,000 by 11:00 on May 31, 2023, I will receive $102.5 (Participation + APR), if it exceeds this price range or touches $26,000 or $29,000, I will not receive any rewards. and the $100 I deposited as the participation amount, I will get back as $95.
In another example, let’s keep the price range narrower. In this case, our risk will remain constant, but as the rate of return increases, our potential profit will increase.
In the picture above, we predicted that the price will be in the range of $26,500 and $28,500 by May 31, 2023 at 11:00 am, and if this forecast holds, we will be able to get our money back at $106 at the end of the deadline. If our prediction does not hold, we will get our money back at $95.
What Does “Beginner” Mean in Some Subscriptions?
Having a “Beginner” label for a given price range means that the user can opt for an APR option with a 0% At-Risk participation amount. If you’re just starting out and don’t want to take risks, you can opt for an APR rate of 0% in one of the pools with this label.
What Are the Benefits of the Limited Range Product?
- You can earn good rewards with high return rates in markets that move horizontally and are boring for many investors.
- Considering that the markets exhibit drastic downward and upward movements in short time intervals and move horizontally in long time intervals, products for horizontally moving markets may contribute to the spread of your profitability over a long period of time.
- You can choose the end date and price range that suits your strategy among many options.
- There are no participation and settlement fees for transactions related to the Limited Range product. You do not pay any fees when entering or exiting the transaction.
- If you think the market will go sideways and want to grow your cryptocurrencies, “Limited Range” may be the ideal product for you.
Is Limited Range a Risk-Free Investment? What are the risks?
“Limited Range” is not a risk-free type of investment. As we explained in the examples above, you can get back a lower amount than you deposited.
Here, as in other investment products, you should manage your risk and choose the option that suits you accordingly. You can choose a lower APR rate for a lower risk transaction.
The risk you take in the Limited Range is related to the reward ratio. Higher returns involve higher risk.
However, this risk is not unpredictable. In the subscription type you choose, your probable risk is calculated and notified to you according to the rate of return you choose.
Another thing to note here is that when you join a subscription during the Limited December, it is not possible to withdraw or cancel the amount you have joined before the subscription expires and the settlement date you have chosen.
If you say you trust my lines on the chart, you can now go to the Binance Range Bound page from this link and discover this investment product for yourself.
If you have a problem, you can contact us in the comment section below.
*Not Investment Advice.