What is Binance Dual Investment?

Ranjan Yadav

Published in

Coinmonks

5 min readJun 11, 2022

Dual Investment lets you earn, regardless of the market pulse.

Simply monetize your market view, reap high returns.

Binance Dual Investment is an Allure

Sell High or Buy Low. Wide selection. No trading fees. High interest earnings. How does that sound? Enticing, for sure, isn’t it? Welcome Dual Investment on Binance. In Binance Dual Investment, you can buy or sell cryptocurrency at a price and on a date preferred by you. Binance Dual Investment also lets you earn a high-interest yield from the position irrespective of the market pulse.

Dual Investment is a (non-principal protected structured) saving product, providing a healthy yield with two cryptocurrencies. After the subscription, opt for the asset to invest in, the deposit currency, subscription amount, and settlement date. The return would be denominated in the deposit or alternate currency.

Simply select an asset after assessing the available APYs and the current asset prices. Get started by deciding to Sell High or Buy Low. Then enter the subscription amount, check winning scenarios. Finally, confirm and subscribe.

Binance’s Dual Investment product categories:

Sell High: In the Sell High Dual Investment product, if the Settlement Price is beyond the Target Price, the product is “exercised.” The product is “exercised” if the Settlement Price is greater than equal to Target Price. Contrary to this, the product is “not exercised” if Settlement Price is below Target Price. In other words, in the Sell High Dual Investment product, you can sell your cryptocurrency if the market price touches the target price (on the settlement date). The crypto assets (non-stablecoins) of users are deposited, following which a target price to sell their crypto at is selected. If on the date of the settlement, the market price stays higher than the target price, the order is executed. Subsequently, your subscription amount and interest income is sold (at the target price). After which, the returns in BUSD would be received by you. Alternatively, if, on the date of the delivery, the market price is less than the target price, the order does not get filled. But interest income would still be earned by you, apart from also receiving the same amount deposited by you.
Buy Low: In a Buy Low Dual Investment product, if the Settlement Price is less than equal to the Target Price, the product is executed. The product is not executed if Settlement Price is higher than Target Price. In the Buy Low Dual Investment product, a cryptocurrency can be bought on the settlement date if the market price is less than the target price. Simply deposit your stablecoin (BUSD or USDT) and select a target price meant to buy alternate currency (such as BTC). Then, on the settlement date, if the market price is less than the target price, the order gets executed. After this, your subscription amount and interest income is used to buy BTC (at the target price). The user gets returns in BTC.

In either of the Dual Investment products, (if the product isn’t executed) you get the returns in deposit currency. Alternatively, you get the returns in alternate currency upon product execution. A settlement date exists for each subscribed product.

Binance Dual Investment vs. Spot Limit Orders or HODLing

The two prime reasons to use Dual Investment are as follows:

In the hopes of an order execution, you might want to consider Buy Low or Sell High Dual Investment.
You decide to hold your cryptocurrencies or stablecoins whilst reaping a healthy APY income. Then you simply monetize your market view in the hopes of the order not getting executed.

Dual Investment vs. HODLing

On a number of occasions, Dual Investment might emerge as a credible strategy as against idly holding your crypto or stablecoins in a spot wallet. Although, at times, it would simply be better to just hold your cryptocurrencies. In the instances enlisted below, we intend to follow the Sell High Dual Investment strategy. But, even for the Buy Low Dual Investment, a similar strategy is applicable.

Instance 1:

Dual Investment is ideal as in it if the Target Price isn’t achieved, you can keep your cryptocurrency whilst reaping a high-interest yield.

Instance 2:

Dual Investment is also ideal in an instance when the Target Price is achieved, but the market price isn’t much higher in relation to the target price. If you decide to sell your crypto at a price comparatively below the market price, the extra interest income acts as a cushion, allowing you to sell the cryptocurrency as against holding.

Instance 3:

HODLing is ideal in a scenario where the Target Price is achieved, but the market price is totally above the target price. In this case, selling your crypto at a price too lower than the current market price would still render the extra interest income to offset transactional price variation.

Dual Investment vs. Spot Limit Orders

If Buy the Dip or Take Profit (at a desired Target Price) trading strategies interest you, then Dual Investment would suit your style. Dual Investment as well as Spot Limit Order involves buying or selling cryptocurrency at the specific target price. While in Dual Investment no trading fees are payable whereas a high interest income is to be earned. Although, in Dual Investment, unlike in Spot Limit Orders, there is an inherent risk if on the settlement date, the order doesn’t get executed.

NEW: Dual Investment Beginner Mode

Binance’s new Dual Investment “Beginner Mode” is essentially geared towards acquainting newbies to the Dual Investment product. Simply use the toggle button in the web or mobile versions to use the Beginner Mode, and access a step-by-step guide to subscribe. Upon getting reasonably acquainted with the Dual Investment navigation, turn off the Beginner Mode toggle button to (re)access advanced features.

Steps to follow:

Select the cryptocurrency to be bought or sold by you.
Decide on if to Buy Low or Sell High.
Select the right product considering the preferred Target Price, Settlement Date, and APY.
Simply deposit your funds.

Dual Investment Risks

The Dual Investment risks are indifferent from buying or selling cryptocurrencies at the Spot market (in the limit order format). While the nature of the market volatility is a determining factor, buying too high or selling too low is likely, as well.

The market price not reaching the Target Price could render you missing the chance to buy or sell at a profiting price.
Subscribed assets are locked wherein users can’t cancel or redeem prior to the Date of Settlement.
The only scenario of executing the trade could be per the Settlement Date market price.

New to Binance? Register today!

Disclaimer: This article is meant for educational purposes only and should not be construed as investment advice.

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What is Binance Dual Investment?

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Written by Ranjan Yadav