The cryptocurrency market is always volatile and can affect the value of a portfolio if you have no trading experience. Therefore, many users want to invest in cryptocurrencies differently, including Dual Investment. Dual Investment Binance is a way to generate passive income from the relative price gap of two cryptocurrencies, regardless of the volatility of the market upwards or downwards. The following article explains in detail the questions of users: What is Dual Investment Binance? How to make money?
What Is Dual Investment Binance?
Binance Dual Investment is a form of staking a cryptocurrency (e.g., BTC) and earning a profit based on two assets (e.g., BTC and BUSD). In addition to users receiving additional earnings based on the blocked product, they can also increase their potential income based on the market price of the crypto asset. There are two types of Dual Investment products: Up-and-Exercised and Down-and-Exercised.
There are two possible scenarios when investing in Dual Investment: Exercised and Not Exercised. With an investment exercised, the user receives an annual rate of return converted into a coin in pairs and a profit. In contrast, with an investment not exercised, the investor only gets a rate of return. There are a few principles when investing in Dual Investment as follows:
- Users can sign up with USDT and BUSD or BTC stablecoins.
- The so-called rate of return (APY) is calculated on an annual basis.
- Users can subscribe to products for a predefined period of time (up to 30-60 days or even very short 7 to 15 days).
- A completed subscription cannot be canceled, you must wait until the end of the expiration date of the product, which is indicated in its details.
- Each Dual Investment Binance product has a different profit calculation.
How to calculate the profit of the Product Up-and-Exercised?
- An Up-and-Exercised product is executed when the price of the underlying asset rises above a predetermined price, the initial deposit is converted into the alt currency (BUSD/USDT) at the specified price. before. The user then receives the cryptocurrency set at the set price and the converted profit into the alt currency. Profit is calculated with the formula: (Registration amount * Strike price) * [1 + (APY% * Deposit days / 365)].
- Conversely, the Up-and-Exercised product is not exercised if the price of the underlying asset does not exceed the strike price, the user receives a profit from the cryptocurrency initially deposited, calculated by the formula: subscription fee * [1 + (APY% * Deposit days / 365)]
Example 1: Suppose the user has 1 BTC and the current price of BTC is 47,677. The person subscribes to the Dual Investment Up-and-Exercised product for seven days. The strike price is set at 49,000 USDT with an APY of 50.07%. On the expiration date, one of the following two cases occurs:
- If the price of BTC is greater than or equal to $ 49,000, BTC increases and is exercised, then the person is paid the equivalent of 1 BTC at the set price of 49,000 BSDT plus 50.07% additional return. The total amount the person received after payment is: (149,000)[1+(50.07%*7/365)]=49,470 BUSD.
- If the final settlement price of BTC is less than $49,000, BTC is not exercised, you will get 1 BTC back plus interest: 1 * [1 + (50.07% * 7 / 365) ] = 1.0096BTC
How to calculate the profit of the Product Down-and-Exercise?
- Down-and-Exercised products are executed when the settlement price is less than or equal to the actual price. The user will then receive the set amount and the profit converted to crypto. Profit calculated by the formula: (Registration Amount / Strike Price) * [1 + (APY% * Deposit Days / 365)].
- In contrast, the Down-and-Practice product is not executed if the value of the underlying asset is higher than the predetermined price on the delivery date, the user will recover the deposited cryptocurrency plus profit, profit formula profit (same formula for calculating the profit of Up-and-Exercised products above): Registration amount * [1 + (APY% * Deposit days / 365)].
Example 2: Suppose the user has 10,000 USDT and the current price of BTC is 47,737 USDT. The person subscribes to the Down-and-Exercised Dual Investment product for 14 days with APY 50.87%. The strike price is set at 47,000 USD. On the expiration date, one of the following two situations occurs:
- If the price of BTC is above 47,000 USDDT, the product does not run, the user gets back 10,000 USDT plus interest: 10,000 * [1 + 50.87% * 14/365) = 10,195 USDT
- If BTC is less than or equal to 47,000 USDDT, the product drops and is executed, the user’s 10,000 USDT is exchanged for BTC at a price of 47,000 USDDT plus interest. The total amount that the person received after payment is: (10,000/47,000)[1+50.87%)14/365)]=0.217 BTC.
How to make money with Dual Investment?
Step 1: Sign in to your Binance account. Register using the link below:
Step 2: Access the Dual Investment feature: Click on the Earn tab, select Dual Investment. Scroll down to the Dual Investment area, select Go to Dual Investment.
Step 3: Subscribe to a double investment:
Select the Up-and-Exercised or Down-and-Exercised product with the desired duration and the APY, click Subscribe on the Dual Investment page.
- If you sign up for Dual Investment for the first time on Binance, you need to take a knowledge test, click Start Quiz to do so (you don’t need to do this next time). The answers to the quiz “Dual Investment Tutorial & Quiz”.
- A window appears, enter the number of properties you want to participate in Duel Investment, read and accept the Accept terms of service box, then select Subscribe.
Above are some instructions to help you make double profits using the Dual Investment feature on Binance. Participants should know that high returns always involve risk and are not guaranteed. The strike price on this feature is fixed and will not change. APY is constantly evolving and depends mainly on the strike price, remaining deposit days and price movements. Once you have registered for the Dual Investment product, the APY will be locked during the deposit days and will remain unchanged during that period.