- Summary:
- Bitget has designed Snowball to cater for the needs of both high-risk and risk averse investors while protecting their principal.
Bitget exchange, a market leader in crypto derivatives and copy trading, has launched an innovative structured investment product, Snowball. The new instrument is an options market investment portfolio linked to a structured financial product with principal protection. According to Bitget, Snowball is designed with the goal of providing its clients an edge in the ever-changing cryptocurrency market.
Protecting investors’ principal, Snowball is a derivative of the options market’s investment portfolio. The new product builds on Bitget Earn, a previously launched feature, to maximise earnings and protect principal, allowing for a steady accumulation of yields with an annualised rate of return (APR) of up to 24.5%.
How Snowball works and what’s in it for users
Snowball’s goal is to make it easier for customers to confidently and securely navigate the dynamic cryptocurrency market while keeping their exposure to risk to a minimum. This is a key consideration for investors in the crypto market, considering that the market is still viewed by many as volatile.
The product will function according to the observation period principle, which estimates the time interval between the user’s subscription to the product and the beginning of interest payments. Users’ expectations of yield are tied to the observed “knock-in” and “knock-out” prices during the period.
There is support in Snowball for both bullish and bearish traders. The Bullish option is designed to protect investors’ capital while making reasonable price predictions (within certain limits). Bearish options are better for customers who want to hedge their bets by anticipating mild price swings or small price drops within a set of limits.
The new product’s greatest strength is that it has a low baseline risk, but this value is contingent on the active participation and effective deployment of users’ resources. Investors, however, need to be aware that abnormally high or low volatility can affect yields realized from Snowball.