“The key to making money is to stay invested” making money has never been easy, but however you can make money while you sleep with Binance Dual Investment products.
This is a great investment plan that allows users to earn interest on both sides. This article will cover how Binance Dual Investment works and how users can make money without losing their capital.
What is Binance Dual Investment?
Dual investment is a high yield investment plan that enables users to earn interest income by trading/predicting the future price of cryptocurrency assets. Users can BUY LOW and SELL HIGH cryptocurrency at their targeted price and date.
This is different from futures trading, where you use leverage and Spot trading where trading fees are charged. Dual investment is free and you also earn income whichever way the outcome of your result.
Click here to watch a short video on Binance dual investment
How Does Dual Investment Product Work
In Dual Investment, users select the underlying asset, deposit currency, and select subscription amount and delivery date. Returns will be received in the deposited currency or alternate currency.
There are two types of Dual Investment products which are,
“Sell High” and “Buy Low”.
Sell High
In this plan, users subscribe to buy a crypto asset at a strike price they are hoping to sell and the delivery date. If the market price is above or equal to the strike price, then the order is filled and the user’s subscription amount and interest income will be sold at the strike price and the user will receive returns in BUSD.
However, if the order is not filled (the market price is below the strike price) on the delivery date, the user still earns interest income. The user receives the same amount they deposited and also receives interest income in the same currency.
Buy Low
This is the opposite side of the SELL HIGH plan. In the buy low plan, users deposit their cryptocurrency asset (BUSD or USDT) and select a strike price at which they want to buy a specific cryptocurrency and date. If the market price is below or equal to the strike price on the delivery date then the order is filled and the user’s subscription amount and interest income will be used to buy the selected currency at the strike price and users will receive returns in the bought currency.
However, if the order is not meant, the user receives the same amount he deposited and also receives interest income in the same currency (BUSD or USDT). However, if the order is filled, the user receives interest income in another currency.
FOR EXAMPLE.
ABC deposited 100 BUSD and made an order to buy coin XYZ at a targeted price. If the order is filled on the delivery date, ABC’s 100 BUSD will buy the selected coin XYZ at the selected price and earn returns on the selected coin XYZ. And if the order is not filled, ABCs 100 BUSD would be returned and receive income interest in the same currency (BUSD)
Regardless of whether the SELL HIGH or BUY LOW order is filled or not, the user still receives the interest income. The difference is that if the order is NOT filled, the user receives interest income in the same currency as the deposited currency.
How to Calculate Dual Investment Plan
Sell High:
(Subscription Amount * Target Price) * [1 + (APY% * Deposit Days / 365)]
Buy Low:
(Subscription Amount / Target Price) * [1 + (APY% * Deposit Days / 365)]
When the target price is not reached, your subscription amount and interest income will not be converted and you will receive your original subscription amount and interest in the deposited currency. The below formula shows the total amount you will be receiving:
Subscription Amount * [1 + (APY% * Deposit Days / 365)]
Example 1. If Ola deposited 1 BTC on Binance Dual Investment with a “Sell High” position. The BTC price was $30,000, and he subscribed to a 30-day product with a 40% annual yield and a target price of $40,000.
When the product expires 30 days later, Ola will get one of the two outcomes:
Scenario 1: BTC is above $40,000
Ola gets the value of his 1 BTC back in BUSD, plus the 40% annual yield.
Total received: 1*40,000*[1+(40%*30/365)] = 41,315 BUSD
Scenario 2: BTC is below $40,000
If the target price is not reached, Ola gets his 1 BTC back, plus the 40% annual yield.
Total received: 1 BTC*[1+(40%*30/365)] = 1.03288 BTC
Example 2. Ola invested 100 BUSD on Binance Dual Investment with a “Buy Low” position. The BTC price was $30,000, and she subscribed to a 30-day product with a 40% annual yield. The target price was set to $20,000.
When the product expires 30 days later, Ola will get one of the two outcomes:
Scenario 1: BTC is above $20,000
The target price is not reached, Ola gets his 100 BUSD back, plus the 40% annual yield. Total received: 100*[1+(40%*30/365)] = 104 BUSD
Scenario 2: BTC is below $20,000
Ola gets the value of his 100 BUSD back in BTC, plus the 40% annual yield.
Total received: 100/20,000*[1+(40%*30/365)] = 0.0052 BTC
Terminologies Used in Dual Investment
Strike Price = This is the “Target Price” at which users want to buy low or sell high.
Delivery Date =This is the “Settlement Date”. The date at which the user will receive the deposited amount and interest yield
Cut off Time = This happens at 10:00 UTC on the Delivery Date. This is the time when we determine whether the user’s asset was executed to BUY LOW or SELL HIGH
Subscription Amount = the user’s deposit amount, which the user is hoping to use to buy another currency at a lower price or to sell for another currency on the Settlement Date
Spot Limit Order vs Dual investment
In spot trading
There is a trading fee
Users can cancel their order anytime
No additional yield/interest
Users can sell immediately
In dual investment
Users accumulate interest irrespective of the outcome
No trading fee
Users cannot cancel until the delivery date is reached
Users can only sell at the delivery date
How to start Dual Investment
To start earning with Binance Dual investment.
Register on Binance and follow the procedure below.
Yeah…..Never stop earning
Register on Binance here.
