[00:02] traders! Welcome back to a new video on the Easy Money channel .  As you know, I like to bring you different investment tools, especially those that include cryptocurrencies, so that you always have the
[00:15] option of choosing what to invest in, depending on the market context or the context of your own life. Not everyone is looking for the same goal, and understanding different types of tools that can benefit us
[00:29] in each context is really what will make us money in the medium and repeating to you quite a bit.  At some point in our lives we will want to gain a lot at once by risking little, and at another point we will want to be
[00:44] gaining little, but without risking anything. Well, that doesn't happen magically. We need to know a little bit about everything to understand when to use each today I'm going to bring you another method that I haven't brought to the channel much before, and they are
[01:00] called concentrated liquidity pulses. For some, it will be a term they already heard back in 2021, 2022, and others perhaps never heard it. But the truth is that the tool is very
[01:13] good and I think that nowadays it is much easier to do than it was a few years ago.  Today I'm going to show you how, and we're going to do it all from the Binance application, more specifically from the Binance Web Wallet 3
[01:26] button up there.  For those who have never used that little button, you'll find it in the Pro version of the application, the button that's up there on the left, and by selecting the Binance Pro option that's down there.
[01:39] press it I'll switch, but you have to press where it says Pro and application which is much more complete.  Obviously, to do all this you will need to have a Binance account. Remember, you can create an account from there by scanning the QR code that appears on your screen, as shown in
[01:53] scanning the QR code that appears on your screen. You will get a lot of trading bonuses if it is your first time .  Once the accounts are verified, they make their
[02:06] bonuses in the rewards center so they can use the platform completely free of charge; they will not pay any commissions, Now, once you have your account created and added funds and so on,
[02:20] if you don't know how to do it, remember that I always leave a complete playlist of stuff in the tags above.  They have one for doing it from the computer and another for doing it from the mobile application,
[02:32] beginners and everything is step by step. Once we have our account verified and have funds and everything else, if we press the button that says wallet, it will start a process to open our web wallet 3,
[02:45] of decentralized finance tools .  Not only will we be able to access protocols and more, participate in campaigns and more, but we exclusive tools that are not within the centralized Binance platform or any
[02:59] other centralized platform.  It is something more specific that decentralized finance.  Many of you already have a Web3 wallet set up.  If you don't below so you can create one, or you can scan the QR code that appears
[03:14] on your screen.  They will also be able to access it from there, and all transactions they always bring them the best benefits.  Now we're going to go to this part here where it says earn and then we're going to go all the way to the right
[03:27] where it says pulsidez.  [music] If you have it in English you can find it as liquidity puls.  Inside, we see that it says we will provide liquidity to popular pulls to obtain LP rewards and accumulate alpha points in
[03:41] alpha tokens.  Well, yes, it's all very complex, but I'm going to explain in a very simple way what this liquidity pulse is and how we can obtain better returns than by leaving our cryptocurrencies on the
[03:53] centralized platform.  Well, a liquidity pool is basically a pool where people leave their cryptocurrencies .  That way, by leaving those coins inside, other people who want to come and exchange one
[04:05] more easily because there are many So, for example, I'll be able to exchange my USDC for Ethereum, and I'll be able to do it very easily.  In return, I pay a small commission fee that will go to
[04:19] the person who lent those cryptocurrencies in there. The purpose of these liquidity pulls is to make trading much lower commissions.  In a centralized platform like Binance,
[04:32] the company handles that directly, but in decentralized finance, directly by the people through these smart contracts.  That's why they are decentralized finances.  There is no company or platform that handles
[04:45] that exchange.  It simply goes through people's contributions, and the rewards go to those people who provide the liquidity.  Now, in short, very simply, you put up your cryptocurrencies to make it easier to exchange them
[04:58] commissions that the person pays.  That's all you need to now.  Now, here within the platform we have a lot of liquidity pulses.  For example, we see that we have Ethereum for USDC, Ethereum for USDT,
[05:12] Bitcoin for Ethereum, Bitcoin for USDC, Bitcoin for another Bitcoin.  We have a lot of alternatives and the further down we go, the more we'll find. Even down there we can see how we have Patc by Sau, which are two
[05:26] We could put our gold cryptocurrencies there and we'll be receiving commissions from people who exchange one for the other while we pocket.  Now, are the commissions we can earn on these liquidity pulses
[05:41] better?  Are they worse?  How much are they paying?  Okay, to make it section that says stable coins here and see how much they're paying. For see how much they're paying. For example, USDC, USDT, 0.23% annually. It seems
[05:54] 're seeing is the total.  It's like we're setting a super wide range, which will give us very, very low rewards annually.  The trick here this about concentrating liquidity?  Okay, we're going to try to earn those commissions
[06:10] within a very small price range. Therefore, sometimes we will receive commissions and sometimes we will not.  But by doing that, we'll be amplifying our gains.  For example, let's look at this one below that says USDT USDC which says
[06:22] 4.23.  But if we take a look, well, we're going to have all the information about providing liquidity, we'll see that down there where it says API for this price range it's showing us 0.62%, that's what it's going to pay us, it's very
[06:37] little and it will pay us commissions as long as the prices of these two currencies move between 099431 and 1.004. What we're seeing now is USDT and USDC.  They are two stable cryptocurrencies.
[06:50] if the price fluctuates because we know that sooner or later they'll go back towards one, unless obviously everything goes to hell.  In that case, you won't but in this case, we trust that both are very strong.  So why are
[07:04] we going to put such a wide range of [music] 050% less and 050% more? Basically, we're getting more commissions, but we're actually getting paid less.  Now, notice how if I start moving these bars we have here,
[07:18] we're going to concentrate this range.  Yes, look, a 020 and a 020. Let's see that now they're going to pay us all the commissions that fall between 0.997 and 1.001. In this case, the API, the
[07:31] annualized return we are paid, rose to 1.56 and we can keep increasing this.  Notice how if we lower it to 010, this would be the narrow option.  In this case, the API is no longer paying 3.12.  We will be receiving 3.12%
[07:45] on the total invested here. Notice that if I go down and put here, for example, 1,000, it will be asking me for $1,000 in USDC and 856 in USDT and in return it will be giving me a return of 3.12% per year if
[08:01] within that range, which would be about 16 cents per day. little more, what we can do is narrow this range to 0.05, 0.05, and 0.05.  And there
[08:14] we see that the pencil increases by 5.67.  We are increasing the returns we could achieve as long as it moves within that range.  The money increased to almost double.  And if we shrink this even further,
[08:27] we'll see how the profits keep increasing.  8.9%, even if we leave it increasing.  8.9%, even if we leave it at 0.02 and 0.02 we can see that the API reaches 15.58% and we would be earning almost daily.
[08:41] happen here?  The price difference between these two currencies widens range.  In that case, what will happen is that we will not be earning the rewards because it went out of the range where we contributed that
[08:55] liquidity.  But note that the option to earn 16% with our stable cryptocurrencies is there, and we can constantly dismantle and reassemble this, but it understand a little better, let's look at an example with a pair that are not
[09:08] stablecoins.  Let's look at the example with Ethereum and USDC. We simply provide liquidity and here we will have our example.  If we take an average example, we see that it can go up by 25% or down by 20%, and it will
[09:22] 25% or down by 20%, and it will give us 12% on the capital we lock in here.  So, if I put in roughly $500 in US dollars, it will also ask me for 0.23 Ethereum.  so that it is distributed equitably.  And if
[09:37] we do that, we'll be issuing a little over $1,000 and in return they'll be giving us 33 cents every day.  If we make it narrow, the API starts to increase and the returns more than double,
[09:49] and even if Ethereum goes up 10% or down 10%, it will still give us the rewards.  Now, this seems very good.  We can earn quite a lot with our stablecoins or quite a lot with our Ethereum
[10:01] with Ethereum, with Bitcoin, with any cryptocurrency you can think of.  But what exactly is the problem with liquidity pulses or providing concentrated liquidity? concentrated liquidity range work?  Let's look at an example with Ethereum USDS.
[10:16] range, as in example one, we will be Sometimes we'll have a little more Ethereum, sometimes a little more USS, but as long as it stays within the range, we'll be earning that 25 or 15 or whatever amount
[10:31] you want or whatever amount they've put in as annual return because the price moves within that range.  So, what happens now?  What can happen the range.  Let's look at example two where it says out of range upwards.  Let's
[10:45] assume that Ethereum's price goes up, and what will happen in this case is that the asset that is going up will start to be sold, and the one that is going down will start to be bought.  In this case, Ethereum's price rises and it goes to the
[10:59] upper part of the range, which would be $3,200.  Yes, we had done a range from 2,800 to 3,200.  If Ethereum goes above 3,200, what will happen is that more and more Ethereum will start being sold, and you'll end up with 100%
[11:13] USDC and no Ethereum at all.  In this case, if it goes above 3,200, what more commissions until it returns to within the range.  You'll have sold all your Ethereum at increasingly higher
[11:26] but you won't be making any profit from the exchanges, from the swaps that are within that liquidity. Now, in case three, where it goes out of range, but the downside, where Ethereum drops below $2,800.  In
[11:41] this case, remember, you will be buying the weak currency and this case, the Ethereum is weaker, with its price decreasing. Therefore, your position will
[11:54] become 100% in Ethereum if it goes below that range.  It doesn't happen all at once , but rather it happens gradually, always within the range.  And when a limit is reached, 100% has already occurred.  Back.  If it goes
[12:07] below 2,800 in this example, we stop earning commissions until it's back within the range an example case with a price range of 2,800 to 3,200 for Ethereum and USDC, but the pairs can be any.  It could be Bitcoin versus
[12:21] Ethereum, it could be USDC versus USDT, it could be Ethereum versus USDT or Bitcoin versus USDT.  There are thousands of examples.  And the range can also be different; it can be wider, it can be narrower, and so on.  The more limited the scope, the better the
[12:34] also a greater chance that 100% of our capital will be converted into one of the two currencies.  So that would be the risk.  It's called impermanent loss.  These are losses that haven't been realized yet because imagine if the range goes up
[12:48] , you'll see that you'll be earning more USDC than before higher prices.  Great, that's what we're most used to.  But when it goes buy Ethereum from us, and each time at a lower price.  It's like buying into
[13:02] the fall.  But in many cases people perceive this negatively.  While cheaper in a bear market, we don't really want to do that, or at least it's not what we're used to. So there we'll see that our
[13:15] dollars, our $2,000, were converted into 18,800 and now it's all in Ethereum, which is worth less and less.  That 's precisely the risk; it's buying a currency that is worth less and less.  My advice is that if you're going to do this,
[13:27] always do it with strong coins, not with meme tokens that may can see very high returns of 1000, 2,000%, 3,000% by concentrating liquidity in tokens that perhaps almost nobody knows.  And the profit
[13:41] we can make in a day might be 50 or 70%, but the risk that that coin will never rise again is very, very high, and we're going to see a Mem, accumulate. So, look at this case where we're trading Ethereum USDC.
[13:56] Let's narrow the example here to 3% if your Ethereum goes up and 3% if it goes down.  In this case, the annualized return if Ethereum always stayed within that range would be 79% annually.  By putting in just over
[14:10] $1,000, I'm earning $211 per day. Obviously we can move this around. If the range is compromised, we can dismantle this and reassemble it within a new price range.  Obviously, it wouldn't be ideal to be doing it all the time
[14:24] because there are commission costs, and that's what you pay when you put it together, and that's what I'm this is put together.  Let's go back and do the example with the stablecoin pair we saw earlier.
[14:36] tell us on which platform it is being done.  In this case, Uniswap version 3, which is one of the most secure protocols in decentralized finance.  And down here we'll see how much is being paid in commissions
[14:49] in total and on which network it's done. That's very important.  Notice that here we are doing everything on the BNB SmartChain network.  Therefore, within my Binance Web 3 wallet I will need to add balances that are within the
[15:02] BNB SmartChain network.  If I add them on the base network or on the Ethereum network, they funds to the wallet is very easy.  Notice that there's a button there that receive.  We select the option that says transfer from the
[15:17] currency we want to deposit, which has to be in our Binance spot wallet , for example, USDT.  And here's very important: select the same network that has your security.  If they send it over another network, they will simply be able to use it on
[15:30] things that have that same network.  In this case, for example, web 20. I select B20, enter how much I want to send, click confirm and that's it.  Once we have the balance inside our web wallet 3, we will come to the
[15:42] option to contribute liquidity.  Let's our balance.  And if I, for example, put in 60 USDS, here it will ask me for 51 USDT.  It will show me how much API it will pay me and the estimated daily return
[15:56] is an estimate.  It will depend on the transactions being carried out within that remember a little more.  I can go down to 0.04 and 0.04.  And we see the pencil rise
[16:09] to 7.79.  Obviously I'm investing very little here, just about $16, and I'm going to be earning very little, less than 3 cents a day.  Here I simply click where it says next and it will make me sign this smart contract.  I select
[16:23] approve USDT, check the box and click accept.  This approval of USDT and Once they want to assemble and disassemble the ranks, it won't ask them to.  They click confirm and click confirm.  Once again we see that the network fees on
[16:36] Benever SmartChain are very, very low, barely a tenth of a cent. Now, to add liquidity, if it asks for a little more, just a penny, and if it works well, this would be recovered in just half a day and
[16:48] with only $16.  If you have more, for example, $1,260. In that case, the commission would be the same, just one and a half cents, but they would be generating about 27 cents a day. Therefore, the costs of assembling and disassembling
[17:01] So, there we contribute the liquidity, we go back to DeFi, it says that we can see our LP positions, that is, Liquidity Pools in my investments on the details page.  If we go back , we'll return to
[17:14] very important information.  Here you can see information about the protocol; you can see information about each protocol to know if you are investing in a platform that is risky or that has a lot of experience.  It tells us, "How much
[17:26] capital is locked inside? When was it created? Who are the owners? information, and where it says 'security,' it gives us data on the protocol's security. 95 is very good, and I think that from 75 down it becomes
[17:41] medium risk, where there might be greater vulnerabilities. It's not that the protocol can be quite a bit weaker compared to the first ones on the market. We'll be earning rewards with that position. Now, it's very important that
[17:56] whenever you go to Earn and want to find your position, you look for this little sheet with a clock here to see what position it was. Right here we have all the specifications. Yes, we see that it's in Uniwap version 3, which was in
[18:08] USDT/USS, and this was the one with the 0.01 commission. So, to find it, we go back to where it says 'liquidity pulse.' We're going to look for stablecoins. In all the networks, we're going to select only BNB
[18:20] SmartChain. And remember, it was USDT/USDC." Regarding Uniswap. So, where it says "All Protocols," we select Uniswap version 3, and there we have the option we had for a commission of 001. It's the first one. We click there, and if we scroll down a bit,
[18:33] investment. [music] Here, if we click inside, we can see our locked capital: 66 USDT and 60 USDC, and it's already moved a bit. Notice how we have 8 cents more USDC and 8 cents less USDT than before. And down there, we see the
[18:49] 're receiving. This is constantly updating and changing transaction, it shows us that change. Now, if I wanted to refund this, I simply click where it says "Refund," and I
[19:02] I want to refund, which can be half, 60%, 50%, or any amount we want. If we put 100%, we click " Next," confirm the transaction, and that's it , our refund will be processed. money, even with any rewards
[19:16] click where it says "eliminate liquidity." Notice that the fee drops where it says "confirm." I confirm the transaction, and that's it. I go back to DeFi, and this [music] investment shouldn't be in the pool anymore. Look
[19:31] , it just disappeared. Well, that's how we can invest in these liquidity pulses, and you can build a lot of strategies with a lot of cryptocurrency pairs, with a lot of ranges, and even with
[19:43] automatic rebalancing so we don't have to be constantly Obviously, that's a bit more complex, but it's great to keep this tool in mind, and you can do it all from your phone in the
[19:55] always leave the links below in the you can create an account by scanning the QR code that appears on your screen. If you have any questions, remember you can leave them below in the
[20:08] comments.  I'll try to answer them here if they're easy, and in the next video if they're a bit more complex. Well, there's not much and if you did, remember that it helps me a lot if you
[20:21] like it and subscribe to the channel. Turn on notifications so YouTube will let you know the next time I upload new content. See you in the next content. See you in the next video.