A Quick Guide to Binance Dual Investment | Binance Academy

TL;DR If you ’ ve been involved in the worldly concern of crypto for a while, you ’ ll know that crypto-assets can be extremely fickle. The total value of your portfolio can experience large swings, leaving you holding on to dear life in the front seat of a violent roller coaster. Binance Dual Investment is a great way to earn passive income no matter which direction the market goes. You have the opportunity to hedge a fixed monetary value but besides profit from the relative price distances of two cryptocurrencies.

Introduction

What can you do to hedge your crypto ’ randomness price while hush generating render ? Binance Earn offers many commodious ways to earn passive income, with varying levels of risk and rewards. The option to use more volatile cryptocurrencies to generate income is enticing, but they are directly related to market conditions. You can besides use stablecoins, such as BUSD or USDT, but Binance Dual Investment takes this concept to the adjacent horizontal surface. You have the opportunity to enjoy render no matter which direction the market goes. Let ’ s see how it works.

What is Binance Dual Investment?

Binance Dual Investment lets you deposit a cryptocurrency and earn an enhance yield based on two assets. You can decide whether you want to sell your cryptocurrency for a higher price or buy it at a lower price in the future by trying to predict the direction of the market. Regardless of your situation, you ’ ll earn an enhance output The currency you will get back is dependent on the consequence of your investing at the settlement date. If you choose to sell higher and if the market monetary value on the settlement date reaches your target price, your investing will be sold for the alternate currency ( BUSD ) at the prey price. If the marketplace price doesn ’ t reach the target price, you ’ ll distillery earn a yield on your situate cryptocurrency. If you choose to buy lower and if the market monetary value does not meet the target price on the village date, you ’ ll get your deposited crypto binding plus output. If the market monetary value reaches the prey price, your investment will be converted for the alternate currency at the target price, along with your matter to. Before we get into how these products work, let ’ s authorize up some of the terms you ’ ll need to know .

  • Settlement date – This is when you can redeem your crypto with the interest that you earned.
  • Target price – The price threshold that determines which settlement currency you’ll get paid in. This price is fixed at a predetermined level upon entering a Dual Investment product.
  • Settlement price – An average of the market price in the last 30 minutes before 08:00 (UTC) on the settlement date. Settlement price and target price determine whether you manage to buy low or sell high.
  • Annual percentage yield (APY) – The interest you’d earn if you’d lock your crypto in a Dual Investment product for a year, including compounded interest. For example, if your APY is 36.5%, then an estimation of your daily effective return is 36.5% / 365 days = 0.1%.
  • Deposit currency – The currency you have used to subscribe to a Dual Investment product.
  • Alternate currency – The currency you will be receiving if the target price is reached.

How does Sell High Dual Investment work?

The BTC Sell High product lets BTC holders sell their bitcoin holdings at the desire price. Sell High products give users a probability to sell the underlie asset with interest at a relatively high price at the clock of settlement. With a Sell High intersection, if the settlement monetary value is higher than the prey price, the product is settled in BUSD and is considered “ sold ”. On the other hand, if the liquidation price is lower than the aim price, the intersection is settled in BTC .
Buy Low products work the opposite way. If the settlement price is lower than the target price, you buy BTC at the prey price. If the liquidation price is higher than the aim price, the merchandise is settled in BUSD .
So how are the concern rates calculated for this product ? The APYs displayed fluctuate and are based on the target monetary value, remaining days, and price volatility. however, your APY will lock in once you ’ ve subscribed to a dual Investment product. How does this work in commit ? Let ’ s say you have 1 BTC, and the current BTC price is $ 37,123. You want to subscribe to the top Sell High Dual Investment intersection outlined below. The target price is set to $ 39,000 with a 148.86 % APY .
After clicking the [ Subscribe ] button, you ’ ll see more details on the merchandise and your possible returns. If you type in 1 BTC, the outcomes are displayed underneath.


16 days subsequently, one of two things will happen :

  • If the BTC final settlement price is above or equal to $43,000, your 1 BTC is paid out at $43,000 plus the extra interest. You now have $43,752.50 BUSD.
  • If the BTC final settlement price is below $43,000, you’ll get your 1 BTC back plus interest worth 0.0175 BTC. You now have 1.0175 BTC.

How does Buy Low Dual Investment work?

The stablecoin-based Dual Investment Buy Low products give users a find to purchase the underlie asset with matter to at a relatively low monetary value at the time of settlement. Let ’ s say you have 10,000 USDT and the current price of 1 BTC is $ 43,123. You subscribe to a 16-day Buy Low Dual Investment product with a 94.75 % APY. The aim price is set to $ 39,000 .
After clicking the [ Subscribe ] button, you can see the details of the Buy Low product and the outcomes .
16 days late, one of two things will happen :

  • If the final settlement price of BTC is above $37,000, you get your 10,000 BUSD back plus interest worth 323 BUSD. You now have 10,323 BUSD.
  • If BTC is below or equal to $37,000, your 10,000 BUSD is paid out in BTC at a price of $37,000 plus extra interest. You now have 0.279 BTC.

How are the returns calculated?

The returns you receive are based on whether your dual Investment product colony price is higher or lower than the aim price. With Sell High, your subscription sum and matter to income are sold at the target price when the liquidation price ≥ target price. If the liquidation price < aim price, then it is not sold and you ’ ll receive your subscription come with interest income in the same currentness. For Buy Low investments, the conditions are the other way round.

How to use Binance Dual Investment

Using Binance Dual Investment is quite easy if you ’ re familiar with how the product works. You ’ ll find the available Dual Investment products on the Binance Earn foliate, or by clicking on the connection in the first footstep below. 2. Select the intersection you ’ d like to subscribe to. 3. Input the amount you would like to invest. 4. Click on [ Subscribe ].

5. You ’ re done ! Your funds will be settled after the village date. You can check your former orders on the Dual Investment Order page

Closing thoughts

Binance Dual Investment allows you to earn passive income no topic which commission the commercialize goes. If you ’ re an investor or trader that wants to do more than stake or lend your HODLed coins, you can monetize your grocery store scene and try on to hedge market-beating prices with add interest. As constantly, make sure you do your own research on the topic before investing your funds .

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