In the cryptocurrency market, buying and holding BTC for the long term is always the right choice. This is due to BTC’s long history of high investment returns. In 2024, BTC rose from $40,000 at the beginning of the year to $100,000 by year-end, leading the global asset growth charts with an impressive gain of over 150%. However, the reality is that BTC holders face a dilemma between long-term holding and the market’s short-term volatility, as well as the risk of a market downturn. Is there a solution that can address the demand of long-term holders for stable, high returns while also avoiding the short-term asset losses caused by market fluctuations or declines?

Compared to other mainstream crypto assets like ETH and SOL, which use PoS consensus mechanisms and offer a simple and convenient way to stake on-chain for stable annualized returns of 2.12%-10%, the on-chain staking market for BTC is expanding rapidly, but it still faces limitations in terms of technical risks, market acceptance, and operational barriers. Despite the large market size of BTC, its staking products remain a niche market.

Additionally, hedging is a common strategy for BTC holders, allowing them to lock in profits or avoid losses during price fluctuations, thus protecting their asset value from extreme market volatility. In this article, we will present another solution for BTC holders from a financial management perspective. This solution not only caters to the high returns expected by long-term holders but also helps to offset the short-term fiat-based unrealized losses during periods of BTC price fluctuations or downturns. This way, BTC holders can patiently hold their coins and enjoy the feast of wealth growth. The article will provide a comprehensive introduction to Gate.io’s BTC financial management products, comparing different product combinations and strategies’ final annualized returns, providing rational guidance for users’ financial decisions.

1. Gate.io BTC Financial Management Portfolio Product Strategies

Gate.io BTC Financial Management is a series of financial services launched by the Gate.io platform, with BTC as the underlying asset. Using different product types and portfolio strategies, it aims to achieve stable appreciation of BTC-denominated assets with relatively low risk. Below are three applicable financial management strategies, which will provide helpful guidance for BTC investors.

1.1 BTC Appreciation Strategy 1: Launchpool + Simple Earn

1.1.1 Operation Guide

After participating in Launchpool staking, assets will automatically transfer to Simple Earn to continue earning interest at the prevailing rates. After a new project is launched on Launchpool, the process can be repeated to grow the assets continuously.

1.1.2 Yield Calculation: Holding 1 BTC, Using Launchpool and Simple Earn for 30 Days to Achieve Asset Appreciation

1.1.3 Yield Review: BTC Valued at $95,000

1.2 BTC Appreciation Strategy 2: Launchpool + Simple Earn + Quantitative Fund

1.2.1 Operation Guide

After participating in Launchpool staking, users can subscribe to Gate.io’s Quantitative Fund—Hedge Ark Capital-BTC. If the staking duration is less than 48 hours, assets should be transferred to Simple Earn to earn interest. Once a new project is launched on Launchpool, assets should be redeemed and reinvested into Launchpool. This cycle can be repeated to achieve asset growth.

1.2.2 Yield Calculation

1.2.3 Yield Review: BTC Valued at $95,000

1.3 BTC Appreciation Strategy 3: Mixed Strategy (Fixed-Term Financial Product, Launchpool, Simple Earn, Quant Fund)

1.3.1 Operation Guide

Split 1 BTC into two portions, with each portion holding 0.5 BTC. One portion (0.5 BTC) will participate in Gate.io’s BTC fixed-term financial management (Lock & Earn) for 30 days, while the other portion (0.5 BTC) will follow either BTC Appreciation Strategy 1 or Strategy 2 to achieve asset compound growth.

1.3.2 Return Review

Lock & Earn Returns:

Lock & Earn + BTC Appreciation Strategy 1

Lock & Earn + 0.5 BTC Appreciation Strategy 2

Note: Participating in different financial management products may have varying return rules and annualized yields. The actual returns will be based on the distribution received.

2. Gate.io BTC Financial Management Single-Product Strategies

2.1 Beginner-Level Products

2.1.1 Simple Earn

Gate.io’s Simple Earn is a low-risk, stable, and principal-protected Financial product. It is similar to traditional financial products, such as fixed or savings deposits, but with higher annualized returns and more consistent performance. Currently, the total lending volume on Gate.io Simple Earn has reached $1.6 billion, with an estimated annualized return of 13.96% for USDT-based investments.

• Advantages of the Simple Earn Product

1. Instant Deposit and Withdrawal: Simple Earn allows users to deposit and withdraw digital assets at any time, with no restrictions on withdrawal times or minimum deposit requirements.
2. Security and Reliability: Gate.io employs multiple layers of security, including multi-factor authentication and cold storage, to ensure the safety of users’ digital assets. Additionally, Gate.io is the first platform to provide 100% margin guarantees and supports full reserve audits, offering an extra layer of security.
3. Attractive Returns: Simple Earn provides daily interest settlements for users. The interest is calculated based on the amount of digital assets deposited and the deposit duration. Compared to traditional savings methods, Simple Earn’s interest rates are generally more competitive, helping users achieve higher returns.

• Why Participate in Simple Earn BTC Subscription

Annualized Return Far Exceeds Competitors

According to the latest market research, Gate.io Simple Earn significantly outperforms competitors by offering a 1% interest rate on its flexible products.

Data updated as of February 11, 2025.

Additional 9% Financial Management Reward
Subscribing to Simple Earn BTC Financial management allows users to receive an extra 9% reward. If the additional reward subscription limit is exceeded, users can opt for 3-day or 7-day Lock & Earn products, which offer higher interest rates compared to the flexible product, while maintaining flexibility.

• Simple Earn Earnings Review: BTC Calculated at $95,000

2.1.2 HODL & Earn

Gate.io HODL & Earn is a blockchain asset holding and interest-generating platform designed for stable, long-term returns. It offers various products, including fixed-term (Lock & Earn) and flexible (instant) earning options, catering to conservative investors seeking stable income.

• Gate.io HODL & Earn Advantages

1. First Platform to Commit to 100% Reserves: Gate.io is the first major cryptocurrency exchange to promise 100% reserves, providing users with enhanced security for their funds. The platform ensures that every user deposit is fully backed by assets, giving users higher confidence in the safety of their investments.
2. Asset Transparency: Users can check their investment status and earnings progress at any time, ensuring clear and traceable records for every transaction made on the platform.
3. Low-Risk Fixed Income: The platform allows investors to avoid the uncertainty brought about by market fluctuations, offering a more predictable and stable return.

• Why Participate in HODL & Earn BTC Subscription?

Gate.io HODL & Earn introduces an exclusive BTC 90-day Lock & Earn investment, offering a 3% annualized return and a 1% interest bonus with every subscription. The bonus interest is distributed weekly.

BTC 90-Day Lock & Earn product can be subscribed with a minimum of 0.0001 BTC, with a limited total of 200 BTC available. Investors can enjoy a 3% BTC annualized return and a 1% SOLV interest bonus. The bonus is distributed weekly to the spot account based on the net subscription snapshot, so you can start earning interest immediately without waiting until the product expires. The total reward pool amounts to 2,800,000 SOLV.

• HODL & Earn Yield Review: BTC Calculated at $95,000

Note: The rewards in the Solv section are temporarily calculated in BTC terms. In actual calculations, Solv price fluctuations may lead to yield deviations.

In conclusion, both BTC spot and fixed-term financial products on Gate.io have a low entry threshold and are simple and quick to operate. When combined with promotional subsidies, these products offer much higher interest rates compared to competitors. This is a very good option for users looking for stable returns on their BTC holdings.

2.2 Advanced Products

2.2.1 Dual Investment

Gate.io Dual Investment is a fixed-return, non-principal-guaranteed investment product. The yield for the product is clearly defined and fixed at the time of purchase, and once the order is placed, it cannot be canceled. Early redemption is not supported before maturity. After purchase, when the settlement period arrives, users are guaranteed to receive a fixed minimum return in the original investment asset. However, market fluctuations may cause the invested currency to be converted into another currency. This is the key feature that attracts users to Dual Investment.

• Advantages of Dual Investment

1. High Returns: Buy at a low price to acquire more cryptocurrency; sell at a high price to earn more stablecoins.
2. Earn Stable Interest: Ensure funds are not idle, earning a stable return.
3. Zero Transaction Fees: There are no fees for buying or selling.
4. No Slippage: Dual Investment eliminates slippage when buying or selling, reducing trading costs.

• Dual Investment BTC Financial Strategy

Hold 1 BTC, choose the BTC “Sell High” strategy, and select the appropriate Target Price product for purchase. The investment period is 44 days.

• Dual Investment Yield Review: BTC Calculated at $95,000

Dual Investment offers tremendous yield potential. In highly volatile markets, annualized returns can even exceed 1000%.

※Important Note: Dual Investment requires analyzing BTC’s future price trends. It’s crucial to choose a suitable high-sell target price. However, if the final settlement price deviates significantly from the target price, you may miss out on the opportunity to buy or sell at a better price.

2.2.2 Structured Products

Structured Products are a new type of financial product combining fixed-income products with financial derivatives like options. Compared to traditional spot and fixed-term products, Structured Products add the risks and rewards of derivative combinations on top of the fixed returns. Therefore, the final yield of Structured Products is not fixed and is typically determined by the price performance of the underlying assets. Structured Products Yield = Fixed-Income Product Yield + Derivative Yield.

• Gate.io Structured Products Types

Currently, Gate.io offers several Structured Products, including Daily Shark Fin, Bullish Bao, Bearish Bao, Prediction Bao, Range Smart Win, and Snowball. Among these, Shark Fin is the main financial product.

• Shark Fin Product Advantages

1. Risk-Free: Principal protection, offering risk-free yield opportunities for users who want to accumulate coins.
2. High Return Potential: For investors who can predict market volatility, Shark Fin offers higher returns than regular financial products.
3. Simple Operation: All types of Shark Fin products are easy to use. The complex underlying hedging is already structured, and users only need to participate with a single click.

• Shark Fin BTC Financial Strategy

Hold 1 BTC, choose the Shark Fin Boost - BTC subscription product, and select the automatic reinvestment option. After 7 days, reinvest in the same product. The financial product’s duration is 28 days.

• Shark Fin Yield Review: BTC Calculated at $95,000

Note: According to the product rules, the final annualized yield is determined by comparing the observed price of the underlying asset with the pre-set price range. When the market is highly volatile, it may be difficult to predict the relationship between these two values, and there is a risk of lower yield settlement.

3. Comparison of Returns for Different BTC Financial Product Strategies on Gate.io

Based on the returns of BTC wealth management combination products and single-product strategies, we offer the following recommendations for different types of wealth management users:

1. Beginner Financial Management Users: Beginners with a limited understanding of the crypto market and difficulty predicting market trends are more suited to BTC wealth management products resembling traditional bank savings accounts, such as flexible and fixed-term BTC products. However, compared to single-product strategies, combination-product strategies show a significantly higher annualized return. Additionally, these strategies are relatively easy to operate, and the threshold for understanding the products is lower. Therefore, we recommend BTC Appreciation Strategy 2 from the combination product strategies as the best choice for beginner users.
2. Experienced Cryptocurrency Players: Dual Investment is more suitable for seasoned crypto investors who have an in-depth understanding of the market and can analyze BTC price trends with some accuracy. These users are better equipped to choose between holding USDT and applying the Low-Buy Strategy, or holding BTC and applying the High-Sell Strategy. As such, we recommend that experienced users subscribe to BTC wealth management products under Dual Investment to achieve ultimate asset preservation and appreciation.

4. BTC Financial Management Risk Management

The BTC wealth management service mentioned above is essentially a “BTC-denominated” wealth management strategy. When you hold this cryptocurrency, regardless of how the market fluctuates, you can still earn BTC-denominated interest through various wealth management strategies. However, it is important to note that even though BTC wealth management is considered a low-risk and stable investment tool, it is, at its core, a long position in BTC. During periods of poor overall market conditions, the value of crypto assets relative to fiat currencies may decline, leading to situations where “the quantity of BTC increases, but its overall value decreases.”

• The following risk management measures for BTC wealth management are provided for reference:

Set Stop-Loss and Take-Profit Points
Set Stop-Loss Points: When the price of Bitcoin falls below a key support level or reaches a preset loss threshold, sell it in time to control losses.
Set Take-Profit Points: When profits reach the target, sell to lock in gains and secure profits.

Regularly Review and Adjust Your Investment Portfolio
Regular Evaluation: Periodically assess the performance and risk status of your investment portfolio. Make adjustments based on market changes and personal investment goals.
Rebalancing Strategy: To maintain the original allocation ratio of your investment portfolio, regularly buy underweighted assets and sell overweighted assets.

Maintain Rationality and Control Position Sizes
Maintain Rationality: Do not let short-term market emotions dictate your decisions. Learn to analyze the fundamental and technical aspects of the market. When Bitcoin experiences significant price fluctuations, analyze its reasons and avoid blindly following the trend by chasing rallies or panic-selling.

Control Position Sizes: Avoid investing all your funds in Bitcoin. It is advisable to allocate a certain percentage of your funds (such as no more than 30%) to Bitcoin to reduce risk. At the same time, keep an eye on the fundamentals of the US stock market and crypto market. When the market enters a bear phase, consider increasing your USDT holdings to prepare for potential emergencies.

Conclusion

In the current cryptocurrency market, subscribing to Gate.io’s BTC financial products is a relatively wise choice. Not only can you benefit from the appreciation of BTC against fiat currencies, but you can also enhance your BTC-denominated returns through financial management strategies. This approach helps counter potential market volatility and downturn risks, ensuring stable growth for BTC. However, given the uncertainties in the broader cryptocurrency market, it is crucial not to overlook the associated risks. Users must carefully weigh the potential returns and risks when selecting financial products to confidently navigate the market.