Binance Dual Investment offers users a way to potentially earn higher returns on their cryptocurrency holdings by speculating on the future price direction of an asset. It allows you to "buy low" or "sell high" at a target price on a specific date. While waiting for this target price to be reached, you earn interest on your deposited assets.
Here's a breakdown of key aspects:
* How it works: You choose a cryptocurrency (like BTC, ETH, or BNB), a target price, and a settlement date. Based on whether the market price is above or below your target price on the settlement date, your initial deposit will either be converted to the other asset at the target price, or you'll receive your initial deposit back along with the earned interest in the original asset.
* Potential Benefits: The main draw is the potential for enhanced yield compared to traditional savings products, regardless of market direction. You can also aim to accumulate more of a specific cryptocurrency if you believe its price will fall (Buy Low) or increase your stablecoin holdings if you anticipate a price increase (Sell High).
* Risks Involved: Despite the "fixed" annual percentage yield (APY) quoted, the actual return depends heavily on whether the target price is met. If the market moves significantly against your chosen direction, you might end up buying high or selling low, potentially at a less favorable price than the current market rate. Your assets are also locked until the settlement date, meaning you can't access or trade them during this period. Cryptocurrency markets are inherently volatile, adding another layer of risk to Dual Investment products.
