Dual Investment (Binance Dual Investment) on Binance is a financial product that combines investing in a currency and betting on its price movement at a specific time, aiming to achieve a higher return than just holding the currency.
But there are important points you need to know because there are risks and potential losses.
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1. Basic Idea
You are locking a specific amount (in a specific currency, like BTC or USDT) for a time period (settlement date), while setting a target price.
On the settlement day, the outcome depends on whether the price reached or exceeded the target or not:
If the target price is met → your investment is converted to the other currency (for example, from BTC to USDT or vice versa) + earn interest.
If the target price is not met → you remain in the same currency + earn interest.
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2. Types of Dual Investment
There are two main types:
A) Buy Low
A stablecoin like USDT or BUSD is used.
You set a target buying price for a currency like BTC.
If the price of BTC drops to the target price or lower on the settlement date → you buy BTC at that price + earn interest.
If it does not decrease → you remain in USDT + earn interest.
B) Sell High
You use a currency like BTC.
You set a target selling price higher than the current price.
If the price rises and reaches the target → you sell BTC at the target price for USDT + earn interest.
If the price does not reach → you remain in BTC + earn interest.
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3. Key Components on the Page
1. Base Currency: The currency you start your investment with (BTC or USDT…)
2. Altcoin: The currency you will convert to if the condition is met.
3. Target Price: The price you set for the sale or purchase.
4. Settlement Date: The day when the result is calculated and the transaction is executed.
5. Annual Percentage Rate (APR): The percentage of interest if you invest for a year (actual profit is calculated based on the actual investment period).
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4. Practical Example
Imagine you own 1 BTC and its current price is $60,000
You choose to invest in "Sell High" with a target price of $65,000 and a settlement date after 15 days, with a 15% annual return.
If on the settlement day the price of BTC ≥ $65,000 → 1 BTC is sold for 65,000 USDT + interest profits.
If the price of BTC is less than $65,000 → you keep the BTC + interest profits.
5. Advantages
Higher profits than regular staking.
You can buy or sell at a price you set while earning additional interest.
Flexibility in choosing price and date.
6. Risks
Market Risk: You could lose an opportunity if the price moves in your favor more than you expected.
No control after closure: Once subscribed, you cannot cancel the investment before the settlement date.
Currency Conversion: You may receive a different currency than the one you started with.
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7. Tips for Beginners
Use amounts you can afford to risk.
Set realistic price targets based on analysis.
Try with a short period before entering large amounts.
Monitor market fluctuations before choosing the target price.
