If fire is
fought with fire, can snow be fought with snow? This is the conclusion that the
cryptocurrency exchange, Bitget has come to. In response to the ongoing,
months-long ‘crypto winter’, Bitget has prepared a new investment product
called Snowball. It aims to provide investors with a stable rate of return
amid the volatile and recently uncertain cryptocurrency markets.
Offering up
to 24.5% Annual Percentage Rate (APR) while offering ‘principal protection’,
Snowball aims to provide investors with lower-risk products in the ever-changing
cryptocurrency market. Principal protection is a rule borrowed from the
structured notes market, which guarantees the user that regardless of how the
underlying asset performs, they will receive at least a partial return on their
investment.
According
to the official press release seen by Finance Magnates, Bitget’s
Snowball is not only an investment product but also a reflection of the
company’s philosophy to ‘Trade smarter’. Targeting a younger tech-savvy
audience, Snowball is a financial product that is tied to the options market
portfolio. It builds upon Bitget’s existing ‘Earn’ feature to optimize returns
while minimizing risk, promising higher yields.
“At Bitget,
our commitment to empowering users with smart and secure trading solutions is
unwavering,” Gracy Chen, the Managing Director at Bitget, commented. “With the
launch of Snowball, we are redefining the crypto investment landscape.”
Targeting
the youngest generation of investors is no accident. According to a study by Bitget a month ago, Gen Z dominates the crypto trading space, and
85% of investors from this generation are generating profits.
Source: Bitget
How Snowball Works
Snowball is
designed to cater to both bullish and bearish investors. The bullish option
focuses on protecting the principal while anticipating moderate or slight price
increases within specific ranges. On the other hand, the bearish option is
tailored for those who expect moderate or small price decreases within certain
ranges.
The product
operates based on an ‘observation period principle’, starting from when a user subscribes to Snowball until the yield
