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Bybit Learn
Bybit Learn
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Jul 28, 2022

10 Reasons to Invest in Bybit’s Shark Fin Products

The crypto market might be highly volatile, but structured products like Bybit’s Shark Fin can give traders the stability they’re craving. With guaranteed principal and yields that depend on the underlying asset’s settlement price, Shark Fin products often represent a sensible investment.

In this article, you’ll learn exactly how this financial product operates. You’ll also read about ten of the main benefits associated with investing in Bybit’s Shark Fin. Even if you decide to hold off on making a purchase for now, learning more about structured products will give you a better general understanding of decentralized finance (DeFi) and the larger crypto world.

What Are Bybit’s Shark Fin Products?

Bybit’s Shark Fin is a structured product with the principal guaranteed. The final yield depends on the underlying asset’s settlement price at the plan’s point of expiration, an arrangement that allows you to capitalize on the asset’s volatility.

For traders, Bybit’s Shark Fin carries the benefit of a minimum yield as long as the settlement price equals or exceeds the preset price range when the subscription ends. The focus is entirely on the settlement price, which frees traders from worrying about daily market fluctuations. This type of financial product is designed to provide stability in an inherently unstable environment.

Bybit offers two types of Shark Fin products. Bullish Shark Fin — as its name suggests — is meant to provide the highest possible yields in a bullish market. If the asset increases in value as expected, the trader receives a high yield rate. Less impressive asset growth will lead to a medium or guaranteed yield rate.

Bearish Shark Fin, meanwhile, is designed to help investors capitalize on a bearish market. If the price of the underlying asset remains within the preset price limits, a high yield can be expected. Even if the asset falls short of expectations, you can still expect a medium yield. The guaranteed yield rate saves an investor if a “knockout” situation occurs. This format essentially functions as a safety net, helping investors protect their funds in a declining crypto market.

Why You Should Invest In Bybit’s Shark Fin Products

Bybit’s Shark Fin products represent an enticing investment opportunity, especially when the crypto market is more volatile. While assets can suddenly change in value, a structured product like Shark Fin provides a bit more stability.

Whatever the outcome, Shark Fin products hold genuine benefits for savvy crypto traders. Here are the ten main reasons to consider making the investment with Shark Fin.

Suitable in Both Bullish & Bearish Markets

As described above, Bybit offers two versions of its Shark Fin products. The Bullish Shark Fin helps maximize yields in a bullish market, while the Bearish Shark Fin can protect a trader’s holdings when the market takes a downward turn. This ability to capitalize on both bullish and bearish markets is a major advantage of Shark Fin products.

With most investments, traders have to worry endlessly about a potential dip in the market. The structure of Bearish Shark Fin alleviates this concern. By protecting your investment against sudden market movements, Bearish Shark Fin provides both peace of mind and higher yields.

Relatively Low-Risk Product

Purchasing Bybit’s Shark Fin products represents a relatively low-risk investment. The product’s structure might occasionally limit yields, but it can also prevent investors from suffering significant losses. This makes purchasing Shark Fin safer than investing directly in cryptocurrencies.

To buy Shark Fin products, you must spend at least 100 USDT or 100 USDC. There is no maximum investment size, meaning you can buy as much as you’d like until the available subscriptions are sold out. Risk-averse investors can place a considerable portion of their holdings into Shark Fin products and rest assured that they’re making a sensible choice.

Flight to Safety

The crypto market is currently in the middle of a severe downturn — meaning that investors are eager to ditch risky investments. As they bail on volatile assets, they’re looking for safer places to park their crypto holdings. Shark Fin products, with their stability-inducing structures, give investors just the safe havens they’re looking for.

This flight to safety will help boost the popularity of Shark Fin products. Higher demand, meanwhile, will give the products staying power. Investing in Shark Fin is a bit like buying bonds, but with a shorter tenor. This safe investment strategy will likely maintain its popularity as long as the crypto winter persists.

Diversify Your Portfolio

All smart investors understand the importance of diversifying their portfolios. When you invest in just a few stocks, assets or cryptocurrencies, you’re potentially setting yourself up for disaster. With an undiversified portfolio, a single unexpected event can bring financial ruin. Spreading your money around is the best way to avoid these sudden calamities.

Shark Fin products are especially useful for diversifying your holdings. They’re relatively low-risk, and they can protect your capital in case of a market downturn. By keeping some of your crypto holdings in a safer location, you’ll have an easier time getting through the rough patches and keeping your finances afloat.

Defined Returns

Rather than leaving returns entirely up to the whims of the marketplace, Bybit’s Shark Fin products provide investors with defined returns. The actual returns will depend on how the settlement price relates to a preset price range that’s determined at the time of purchase.

There are a few scenarios which can play out for investors. If the underlying asset's price ends up within the preset price range, you can expect to receive maximum yield. If, on the other hand, the settlement matches or exceeds the preset range, you’ll receive the guaranteed minimum yield.

Known Maturity Dates

Investors always appreciate having more knowledge about their investments — and Bybit’s Shark Fin products carry the advantage of predetermined maturity dates. When making your purchase, you can choose between investment periods of seven, 14 and 21 days. The products are released every week, and you can purchase the one that best matches your preferences.

Knowing an investment’s maturity date can make financial planning much simpler. Even if you don’t know what the yield will be, you can at least count on some sort of movement at the end of the subscription.

Passive Investment

While some investments require constant attention, passive investments don’t require any attention at all. Bybit’s Shark Fin products are entirely passive. Once you’ve made your purchase, there’s nothing you need to do until the subscription ends. The timing of the investment is determined ahead of time, so all you need to do is wait.

Not only does a passive investment save you from the constant stress associated with monitoring an asset’s price, but it also frees you up to focus on other projects. You can use your time to research other investment opportunities and further diversify your portfolio.

No Ongoing Charges

Charges are every investor's worst enemy. They represent an entirely gainless cost, depleting your holdings while offering nothing in return. That’s why Bybit’s complete lack of ongoing charges for Shark Fin trading represents such an important advantage.

With structured products, you pay for everything up front. Once the purchase has been made, all you have to do is wait for the subscription to end and learn the total amount of your final yield. There are no surprise charges tacked on, and you’ll be able to assess the price of an investment in simple terms from the start.

Market Growth Not Essential for Returns

While standard investments rely on a growing market to provide returns, structured products like Bybit’s Shark Fin can prove lucrative even if the market isn’t growing. That’s because these structured products are designed to provide yields even under adverse circumstances.

In a slightly rising market, a Shark Fin product can still provide hefty yields as long as the settlement price falls within the expected range. In a bear market, the guaranteed principal means you’ll at least get your money back. This format makes Shark Fin products safer investments in a period of uncertainty.

Market Protection Barriers

Bybit’s Shark Fin products come with special market protection barriers that can keep falling markets from destroying your investment. Imagine, for example, that you buy a product backed by an asset that falls in price. The guaranteed principal and protection barriers ensure that your yields don’t follow the market drop until a certain threshold has been passed.

This defensive posture makes Shark Fin products a much safer investment than unprotected assets. Even if the market collapses, you’ll still be protected from financial devastation. When the crypto markets are volatile, this last line of defense can prove invaluable.

The Bottom Line

While there’s no such thing as a risk-free investment, Bybit’s Shark Fin products represent a sound investment for cautious crypto traders. They’re perfect for diversifying your portfolio and protecting your holdings during tumultuous periods of market fluctuation. If you’d like to put your cryptocurrency into an investment without the risk of standard crypto investments, Shark Fin products are certainly worth your consideration.

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