@spinvest With A Nice Risk/Reward Ratio
There is something that successful traders all adhere to. They understand what the risk/reward ratio is for each trade they put on.
Depending upon the market they are trading, the risk/reward helps to establish the moves they make. For options traders, as an example, they look for a 3-1 ratio. Basically, the upside is 3 times that of the downside.
Before going further, here is the proverbial this is not financial advice and do you own research stuff.
When I saw the @spinvest project announced, I go immediately excited. This has tremendous potential. I really like the long term idea behind this project.
SPInvest is not a get rich quick scheme. Instead, it is one that uses the payout rate (inflation) and earnings to grow an account that people own units in via a Steem-Engine token.
The idea is to get consistent returns over time that increase the value of the entire platform. There are 1 million tokens available at the price of 1 STEEM apiece.
So what is the ratio on this and why is it attractive?
It is hard to figure out until I came across this piece in the latest post.
Anyone can put in 1 STEEM which has a downside floor of .95 STEEM. This mean there is a 5% risk at stake.
The post goes on to say that through leasing SP, the annual payout is 20%. This means that the ratio is 4 to 1 in the first year only.
Part of the idea behind SPInvest is to move outside the Steem ecosystem to back the token. The project will have the ability to target things such as other cryptocurrencies such as Bitcoin along with commodities and, maybe even, stocks.
It appears the structure will resemble an investment club with each person having a say in what options are selected for further investment.
This is certainly something that those who are interested in generating a long term return should check out. It seems the risk/reward is favorable meaning one can put the STEEM into the project and let it grow.
With such a limited downside risk, I feel it is worth having part of my holdings in this.
If you found this article informative, please give an upvote and resteem.
That depends on what guarantees that you have the projects will survive. What is to stop them selling the steem and running. The idea behind it is good but the risk is huge without anything to back it up.
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I am just an investor so had the same question. Did a Lil bit of research about the guy behind it and seems legit but only my opinion. Your right there are no guarantees in that sense. Do we have any guarantees in crypto? Very little if any. His also mentioned about setting it up as an investment fund which should put people's minds at rest as it will be a legal document have a look at his previous post. It's not something to put your life savings it to but could be a nice little side hustle long term
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@silverstackeruk is the gentleman behind @spinvest and has proven himself over the past 2 years as a solid member of #steemsilvergold and someone to be counted on.
Your question is valid but I can only offer my personal experience with the person. All of which have been fantastic and I will be investing a lot more into @spinvest if I have anything to say about it.
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That is true. OF course, that is the risk with every project in a realm like this.
I am going on the presumption the individual behind it is not a scammer who has a two year track record on Steem.
But you are correct, the ultimate risk with most projects is they take off with the money.
I don't know the user as I have never come across them before on steem and am not saying whether they are good or dodgy as I have no info on them.
I would say that putting in the research is important before investing and having that legal documentation is good. Obviously they have build up a good reputation over the past couple of years from the comments here but there is always risk when money is involved. We have seen plenty of it already on here.
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I totally agree, nothing stopping me powering down and doing a runner. I wont but you dont know that. My personal account is @silverstackeruk.
Sit back and watch @spinvest and see what happens, i am hoping you will see other posts about this idea in the future :D
That's the thing about it. If I was to invest with you it would require something more than trust. There would need to be guarantees. I'm sure you won't run away but people don't know that.
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Really enthusiastic about this project!! Thanks for sharing!
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Thanks for all the pumping you've been doing for me
Just giving my thoughts brother. When I have faith in something I tend to spread my thoughts. Appreciate all the work you are putting in to the project and how much potential the idea has!!
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It is definitely great conceptually and could lead to other projects with funding in tokens. However, Magic Dice was also a great idea and was well executed but didn’t end well for many. As always, we all need to do our homework and never invest more than we can lose.
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SteemPower Investments and Magic dice are not on the path. No gambling here my friend. If others copy the idea, i hope i get a good foundation before some big player comes and wipes me out. lol.
I agree and people should do their homework
Hey man, i comment bombed your post, haha.
Thanks for another shoutout. Trust seems to be main thing here, once a proper terms are written and a community starts to build around it, trust will come. You know that already i think.
Thank you for your support and confidence