start_investing


<p>There are many cryptocurrency platforms out there if you are looking to trade (buy/sell) cryptocurrencies to gain profit. However, some players like Matrixport have a heavier focus on investment features that will allow users to be more hands-off or earn more even if they are holding onto stable coins like USDC.&nbsp;</p>



<p>While <a href="https://www.planto.hk/en/blog/matrixport-review/">Matrixport</a> has many features like dual currency, smart trend, flexi saving and fixed income – today we will be trying out Matrixport’s newest features, namely “Range Sniper” and “Auto DCA”.</p>



<h2><strong>Auto DCA: automate your crypto currency investment</strong></h2>



<p>Matrixport’s newly launched automated investment feature allows users to set up rules and automate their purchase of popular crypto currencies such as BTC and ETH using USDC and USDT balances in their Matrixport wallets.</p>



<h3>How to subscribe?</h3>



<p>The Auto DCA feature is available to all Matrixport Pro users. Users simply need to go to “Trade” on the bottom menu, then find “Auto DCA” feature among one of tabs.</p>



<p>Reminder: Matrixport’s users can easily switch between “Lite” and “Pro” versions using a toggle located on top left hand corner of the app’s screen.</p>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh4.googleusercontent.com/qP4-uz5XE5SF0-0XZ9jBfHGBl_-4KvtKwVrTlbIcttp4GEa0h-7yvCiROYEJX5bYI3zyTcCPmEemIkdjreDt7nMln_mH5gFACKyCi8i8ie9ySAiyrF3vpNwZLy27duc9_ATO7Lk" alt="Graphical user interface, application

Description automatically generated" width="305" height="457"/></figure>



<h3>Why should anyone use Auto DCA?</h3>



<p>Auto DCA helps users to set their own rules in order to make use one of the most popular investment strategies called Dollar-Cost Averaging (hence the name Auto DCA). Dollar-Cost Averaging works by removing users’ attempt to time the market, and invest in an instrument consistently in order to enjoy longer term return.</p>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh5.googleusercontent.com/ZICV1WZI7B91ND1L4TacNiMmvQdxsjm82hFDZpCbUQwRCzMhekvzAKLicq8tJSeIl4UVDLb1sza4lUnqbO5evQCWxkQS3Q3ZHSkjf9I_VoxRQxZse8e_93jItW3_kie8MLKzVpM" alt="Graphical user interface, application

Description automatically generated" width="337" height="193"/></figure>



<p>While the price of BTC is a lot more volatile than a typical equity instrument, Dollar-Cost Averaging could still work for users who strongly believe that BTC price will rise significantly in the long term.</p>



<h3>How does it work?</h3>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh3.googleusercontent.com/Ch_pXg4f1Ji5nC2li2_iapBnAT-03HAiVFD_rBVrDub9x_Cz3dlnhamKbZneFGBAK8E-IbGrFlS5zZmrp0BQJm7bEC--d69NA4GiKwZWkcwfnTJ-XusM03flqY6ssB6jrJogYJk" alt="Graphical user interface, application

Description automatically generated" width="593" height="312"/></figure>



<p>Users can use Matrixport’s Auto DCA feature to automate the purchase of BTC or ETH under 2 major strategies:</p>



<ul><li>Invest at every specified interval such as every hour, every few hours, every day, every week or every month as long as the balance is sufficient</li><li>Invest only if the price is lower than a specified threshold which is suitable for users who want to automatically purchase BTC or ETH when the prices are low</li></ul>



<p>Additionally, users can also set a total investment limit to make sure that they stay within their comfortable investment budget as well.</p>



<h2><strong>Range Sniper: earning up to 216% APY from USDC or USDT</strong></h2>



<p>Range Sniper is one of Matrixport’s brand new advanced investment features. In general principal, Range Sniper is like purchasing a call option with pre-determine strike price – but with many more tricks up its sleeves. Users can find Range Sniper feature directly on Matrixport’s Home screen if they are using the Pro version of the Matrixport mobile application.</p>



<p>Reminder: Matrixport’s users can easily switch between “Lite” and “Pro” versions using a toggle located on top left hand corner of the app’s screen.</p>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh4.googleusercontent.com/qP4-uz5XE5SF0-0XZ9jBfHGBl_-4KvtKwVrTlbIcttp4GEa0h-7yvCiROYEJX5bYI3zyTcCPmEemIkdjreDt7nMln_mH5gFACKyCi8i8ie9ySAiyrF3vpNwZLy27duc9_ATO7Lk" alt="Graphical user interface, application

Description automatically generated" width="305" height="457"/></figure>



<h3>How to subscribe?&nbsp;</h3>



<p>User deposits USDC/USDT with Matrixport during the fundraising period. The fundraising period is typically open between 6pm to 8pm HKT on every Monday and 4pm to 6pm HKT on every Friday, and the minimum investment is US$100. Interested users can check relevant information a few days before the fundraising date, for example details for Monday’s fundraising slot is typically posted on Friday of the week before.</p>



<p>Users simply need to wait until an expiry date which is 10 days from the fundraising date for their settlements.</p>



<h3>What can you expect from Range Sniper?</h3>



<p>Matrixport has included an in-app calculator to assist you in the settlement calculation. However, the Planto team has tried out Range Sniper during the 11th October 2021 fundraising period so that we can help you visualize what to expect from Range Sniper’s settlement.&nbsp;</p>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh5.googleusercontent.com/UqqLO7rieIrn6vkCIK9tw4sqsV1PPahlYmuCdiuph3RAhZfz0uh3fyZOa4Ra-elit0IVSTeTlJTGqlETpb0ATilIKIjnksbc-8F_ezCy_iAfpVb-MX0OIBy6huUMdz8fivsEICo" alt="Graphical user interface, application

Description automatically generated" width="174" height="269"/></figure>



<h3>How does Range Sniper provide return to users?</h3>



<p>Before we jump into the details, there are a few terminologies that all users need to understand.</p>



<ul><li>Settlement price: this is an average BTC index during the last 30 minutes before expiry</li><li>Lower linked price: this is the lower bound of BTC price show in Matrixport’s yield calculation – which is US$53,000 for the 11<sup>th</sup> of October fund raising</li><li>Higher linked price: is the higher bound of BTC price which is US$59,000 for the 11<sup>th</sup> of October fund raising.</li></ul>



<p>Range Sniper will provide a minimum of 10% APY yield to user’s settlement amount regardless of the settlement price, however both the settlement format and final return may vary greatly depending on the settle price. General mechanism of Range Sniper’s settlement can be found below:</p>



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh3.googleusercontent.com/Glijk4R-qOpZ6I9mC5ryzEx9EZimoPda-cFrUHJlDykEpEfiyFbRFKdErRHZTUaIMuHT9DhHdjm5-_BU2nOasNANMzYxt50xZT0pEUX9vU8Df7St06YtB6Ue6rDskA02Qfqz8ec" alt="Timeline

Description automatically generated" width="452" height="170"/></figure>



<ul><li>If the settlement price is between the lower linked price and higher linked price (ie US$53,000 &lt;= price &lt;= US$59,000), then the users will receive their settlements in USDC/USDT + yield between 10% to 216.6%</li><li>If the settlement price is lower than the lower linked price (ie price &lt; US$53,000), then the users will receive yield of 10% APY, while the settlement will be converted to BTC using the lower linked price (ie US$53,000)</li><li>If the settle price is higher than the higher linked price (ie price &gt; US$59,000), then the users will receive their settlements in USDC/USDT along with yield of 10% APY</li></ul>



<p>Please note that both yield return, lower/higher linked prices may vary across different fundraising periods, so users should make sure to check this information before making any subscription.</p>



<h3>What can the return be like under different scenarios?</h3>



<p>We have prepared 9 scenarios where the settlement price falls below the lower linked price, within the linked price and above the higher linked price.&nbsp;</p>



<p><strong>Investment amount: US$1,000</strong></p>



<figure class="wp-block-table is-style-regular"><table><tbody><tr><td><strong>Settlement Price</strong></td><td><strong>Est. yield (APY)</strong></td><td><strong>Settlement&nbsp;</strong><strong>format</strong></td><td><strong>Market value</strong><strong>(US$)&nbsp;</strong></td><td><strong>Total return</strong><strong>(US$)</strong></td><td><strong>Total return</strong><strong>(%)</strong></td></tr><tr><td>52,000</td><td>10%</td><td>BTC</td><td>984</td><td>-16</td><td>-1.6%</td></tr><tr><td>53,000</td><td>10%</td><td>USDC</td><td>1,003</td><td>3</td><td>0.3%</td></tr><tr><td>54,000</td><td>47%</td><td>USDC</td><td>1,013</td><td>13</td><td>1.3%</td></tr><tr><td>55,000</td><td>83%</td><td>USDC</td><td>1,023</td><td>23</td><td>2.3%</td></tr><tr><td>56,000</td><td>114%</td><td>USDC</td><td>1,031</td><td>31</td><td>3.1%</td></tr><tr><td>57,000</td><td>152%</td><td>USDC</td><td>1,042</td><td>42</td><td>4.2%</td></tr><tr><td>58,000</td><td>183%</td><td>USDC</td><td>1,050</td><td>50</td><td>5.0%</td></tr><tr><td>59,000</td><td>216%</td><td>USDC</td><td>1,059</td><td>59</td><td>5.9%</td></tr><tr><td>60,000</td><td>10%</td><td>USDC</td><td>1,003</td><td>3</td><td>0.3%</td></tr></tbody></table></figure>



<p>At the time of 11<sup>th</sup> October fundraising, BTC index was roughly US$56,500 so if the price fluctuate within +/- of US$2,000, user’s APY will be between 47% to 183%, which will lead to 1% to 5% within a very short period of time of 10 days. However, if the price falls below the lower linked price, users may incur loss as BTC’s value drops (in the example above 0.0177 BTC converts to US$984 if BTC value is at US$52,000 on the settlement day) – in which case, the users can opt to hold onto BTC until the price rise again.&nbsp;</p>



<h3>Can users gain more return by buying BTC directly?</h3>



<p>The answer is, it depends. To help everyone visualize, we have put together a comparison table below between investing US$1,000 into the Range Sniper vs. Buying BTC directly at 1 BTC = US$56,500</p>



<figure class="wp-block-table is-style-regular"><table><tbody><tr><td><strong>BTC&nbsp;</strong><strong>Price</strong></td><td><strong>Range sniper</strong></td><td><strong>Buying&nbsp;</strong><strong>BTC</strong></td><td><strong>Difference</strong></td></tr><tr><td>52,000</td><td>984</td><td>920</td><td>63</td></tr><tr><td>53,000</td><td>1,003</td><td>938</td><td>65</td></tr><tr><td>54,000</td><td>1,013</td><td>956</td><td>57</td></tr><tr><td>55,000</td><td>1,023</td><td>973</td><td>49</td></tr><tr><td>56,000</td><td>1,031</td><td>991</td><td>40</td></tr><tr><td>57,000</td><td>1,042</td><td>1,009</td><td>33</td></tr><tr><td>58,000</td><td>1,050</td><td>1,027</td><td>24</td></tr><tr><td>59,000</td><td>1,059</td><td>1,044</td><td>15</td></tr><tr><td>60,000</td><td>1,003</td><td>1,062</td><td>-59</td></tr></tbody></table></figure>



<p>Overall, Range Sniper provides a certain degree of protection against losses while generating higher yield if BTC price fluctuate within +/-4-5%, but Range Sniper would lose out if BTC’s price rises significantly above the higher linked price.</p>



<h3>Summary:</h3>



<p>Range Sniper looks suitable for investors who are looking to earn attractive yield on their stablecoins in exchange of taking on additional risks. As shown under various scenarios, Range Sniper’s return has an edge when BTC price fluctuates within the linked pricing range.</p>



<p>As BTC price is volatile, those who are more bullish could opt to invest in BTC directly while those who are bearish can consider Matrixport’s other fixed income products instead.&nbsp;</p>



<h3>Pro:</h3>



<ul><li>Great way to earn above market yield from BTC trend using USDC or USDT</li><li>Protection from low to medium downside while providing attractive APY of at least 10%</li></ul>



<h3>Con:</h3>



<ul><li>As all investments contain risk, losses can still be incurred due to the product’s risk-return tradeoff nature</li><li>Unlike a typical call option, users cannot “exercise” their option before the expiry date</li></ul>



<h2><strong>Our conclusion on Auto DCA and Range Sniper</strong></h2>



<p>Both newly launched features from Matrixport introduce different ways in which users can invest into cryptocurrencies. From our perspective, these features are innovative and not commonly found in all crypto platforms. However, they are not designed to cater to everyone – Range Sniper is designed for users who are looking for short-term, high yield returns on their stable coins by taking on more risk, while Auto DCA is designed for users who believe in long-term potential of BTC or ETH, and want to passively invest into them.</p>



<p>Lastly, all investors should keep in mind that all investments contain risk and they should weight their risk appetites against market volatility.</p>



<hr class="wp-block-separator has-css-opacity"/>



<p class="has-small-font-size">Disclaimer: Investment involves risks. This material contains general information and our opinion on Matrixport’s features only. It is not an invitation to invest nor is it to be construed as an offer to buy or sell any investment instruments. The information contained in this material is only accurate on the date such information is published on this material.</p>


While Matrixport has many features like dual currency, smart trend, flexi saving and fixed income – today we will be trying out Matrixport’s newest features, namely “Range Sniper” and “Auto DCA”.

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