There are many ways to profit from crypto market like staking, farming, trading. But there is a special method that can bring maximum profit and limit a certain part of risk, which is Dual Investment. Let’s learn more about this method with mycodebit.com through the article about Binance Dual Investment below.
What is Dual Investment?
Dual Investment is a tool for automatic investment method for two types of assets (usually used by asset pairs – stablecoins) that help users to earn more profit from those two assets.
With the Dual Investment method, users can guarantee profitable growth on any position when the market is depressed and sideways or rising by predicting the future price of that asset.
In a nutshell, Dual Investment allows you to buy or sell cryptocurrencies at the price and date you want in the future, and earn a high yield no matter which direction the market goes.
Benefits of Using Dual Investment
- Buy Low or Sell High: You can buy crypto at low price or sell cryptocurrency at high price;
- High Yield: You will earn a great passive income no matter which direction the market goes;
- Wide selection: You can choose from a variety of assets and set your desired target date and price;
- No trading fees: You pay no trading fees when your target is reached and when a “Buy Low” or “Sell High” order is filled.
Purpose of Using Dual Investment
Whether you are a seasoned trader or simply a HODLer looking to make a little extra profit, there are many reasons for you to use Dual Investment. Some of the most common reasons include:
- Take Profit: Sell the cryptocurrency you are holding at the Target Price to make a profit on your investment and enjoy an extra high yield;
- Buy Low: Buy crypto at Target Price when the market is bearish and enjoy extra yield;
- Grow more crypto assets: You have crypto and want to earn more while holding it;
- Add more stablecoin assets: You have stablecoins and want to make more profit by holding stablecoins.
Key terms in Dual Investment
Before learning how these products work, let’s clarify some terms you need to know:
- Subscription Amount – Amount deposited when registering Dual Investment.
- Target Price – The price at which you want to buy or sell the cryptocurrency.
- Settlement Date – The date set when you want to buy or sell cryptocurrency. You will also receive your return on investment on this day. 07:00 (UTC) is the time to decide if the Target Price has been reached.
- Settlement Price – Average market price for 30 minutes prior to 07:00 (UTC) on Settlement Day. Settlement Price and
- Target Price determine if you can buy low or sell high.
- Annual Percentage Yield (APY) – The interest you earn if you lock your cryptocurrency in a Dual Investment product for one year. For example, if your APR is 36.5%, your estimated daily interest rate is 36.5%/365 days = 0.1%.
- Subscription Period – Number of days from subscription date to Billing Date.
How Dual Investment Works?
There are two types of Dual Investment products, namely: “Buy Low” and “Sell High”.
The Buy Low product allows you to buy the cryptocurrency of your choice (such as ETH) at a low price in the future with stablecoins (BUSD or USDT).
- Target Hit: On Settlement Date, if Market Price =< Target Price, the target coin (ETH) will be bought.
- Failed: On Settlement Date, if Market Price > Target Price, you will keep the stablecoin.
In both of the above cases, you will first earn interest on the stablecoin. After reaching the Target Price, the amount that you have registered and the interest income will be used to buy ETH.
The High Sell product allows you to sell your existing cryptocurrency (such as ETH) at a high price in the future (for BUSD).
- Target Hit: On Settlement Day, if Market Price >= Target Price, your ETH will be sold for BUSD.
- Target Failure: On Settlement Date, if Market Price < Target Price, you will keep ETH.
In both of the above cases, you will first earn interest on the existing currency (ETH). Once the Target Price is reached, the amount you registered and the interest income will be sold for BUSD.
How to Use Binance Dual Investment?
Among the exchanges that offer Dual Investment, Binance Dual Investment is an easy to use and manage product for beginners. Here’s how to use Binance Dual Investment.
Step 1: Log in to your Binance account, click [Earn] – [Dual Investment].
The default mode will be Beginner Mode. The beginner mode is designed for new Dual Investment users. This mode provides step-by-step instructions on the Dual Investment product registration process. You can turn the mode on or off by clicking the button next to [Beginner Mode].
Step 2: Search for the cryptocurrency you want to invest in. You will see the APR and Current Market Price of the asset. Click on the property to get started.
Step 3: Select the product [Buy Low] or [Sell High]. Enter [Target Price] and select [Payment Date]. Click [Register].
You then choose the amount of assets you apply for and follow the next steps to complete the registration, besides, Binance Dual Investment will give you an overview of the profit you will receive during the due period .
Notes to pay attention to when using Binance Dual Investment
The Dual Investment product comes with some risks.
- Registered assets will be locked and you will not be able to cancel the subscription or withdraw assets before the payment date.
- If the price moves away from the target price, you will lose the opportunity to buy or sell at a favorable price.
- Transactions can only happen based on the price on the settlement date.
So you should have risk reduction methods such as:
When you register for a high sell entry, you can open a short with the same volume as you used to register in Binance Dual investment, your position is constant over time but still verifiable. APR rate of return. Note, you can lose money if the market fluctuates and your short is liquidated.
Or when you register to buy low price, you can also open a short order with the same volume and stop loss at the price area corresponding to the profit rate when participating in Dual Investment to secure your current position. Thus, you will have a larger profit margin than usual.
However, this can cost you the opportunity to buy at the price you want and your percentage of profit will be gone during times of high volatility but will be partly insurance and an opportunity to increase volume. tokens to hold for times when volatility plummets. Note this method is for those of you who want to increase the amount of tokens they hold
Should I Use Binance Dual Investment or Not?
Using the Dual Investment investment method is risky, so managing capital and taking a protective position when using this investment strategy is essential during times of strong market volatility to avoid losses. unnecessary. Therefore, it can be seen that Dual Investment is a relatively reasonable investment tool for busy people who do not need too much time to pay attention to the market.
Above is our introduction to Binance Dual Investment. Hopefully after this article you can understand this method well and have a good choice for your long term investment. Wish you all success and see you in the next guides at our site.