I use this tool more often. So far, I have never sold/bought - I have always received a bonus. That is, a large percentage on my amount.
Principle of dual investment:
- you block the amount until a certain date, choosing a target price (buy/sell).
- on the date if the price matches - the asset is sold/bought (for buying - the price matches or is lower, for selling - the price matches or is higher)
- if the price does not match - you receive your amount + %.
All percentages in dual are higher than in ERN. The minimum for BTC starts from 3%, the maximum is 100 and above. These are annual, of course.
Calculation formula: bonus = amount * % / 100 / 365 * blocking days.
How does Binance choose %? Why for one target price is 100%, for another 3%.
It's simple: the closer the target price is to the current one, the higher the %. Without any tricks or predictions.
The logic here is that the probability of reaching this price is high, you are paid a large % for the risk.
How to choose a target price:
- conduct research, determine price boundaries using technical analysis. For example, you see the trend boundary and understand which price is impossible. We choose it to receive %.
- ideally, choose an option with a target price that suits you in case of achievement. For example: bought bitcoin at 100k, block in dual with a target price of 109k. We either receive %, or sell at a profit.
- it's better to choose a short period - 3-5 days. It’s better not to deposit before news events, where we cannot predict how the price will behave.
- if you are in doubt - choose a lower %, with lower risk.
Even when receiving a large bonus of 80-100%, you have a risk.
- you may miss the target price. Your price may be reached before the needed date, and then may move far in the opposite direction. You receive a larger bonus but lose the opportunity to sell/buy profitably.
So approach thoughtfully. The tool is good, bonuses are large. But the risks are greater than in ERN.
