If you are holding top coins like BTC or ETH, keeping them in the Earn – Flexible option – often does not yield much profit, as the interest rates are quite low, usually below 1%. For example, with BTC, the rate is only about 0.27%.
However, Binance has a pretty neat tool called $BTC #Dual Investment – a solution that not only helps you earn higher interest but also sets a target price to sell your coins.
For example, if you have about 30 USD in BTC bought at a price of 95,000, you can set a target to sell at 113,500. At that point, in addition to the possibility of selling at your desired price, you will also receive an interest rate of up to 6% APR – much higher than just 0.27%.
The scenario would be as follows:
• If by the maturity date, the BTC price exceeds 113,500, you will sell BTC at 113,500 and receive an additional interest of 6% APR during the holding period.
• If the price does not reach 113,500, you still retain your BTC and receive the full profit of 6% APR.
What is the risk? If the BTC price skyrockets far beyond 113,500, you might regret selling at a lower price than the market. But after all, you are still locking in a pretty good profit, right? And if the price drops significantly, you are still a top coin holder, which is an opportunity to buy more.
So it’s best to set a really high target price, even though the APR might be low, it will reduce the risk of selling at a low price.