What is Dual Investment Binance? How to make money with Dual Investment?

TutorialsDecember 13, 2021

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The cryptocurrency market is always volatile and can affect the value of a portfolio if you do not have 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 market volatility up or down. The following article explains in detail users’ questions: What is Dual Investment Binance? How to make money?

What is Dual Investment Binance?

Binance Dual Investment is a form of staking one cryptocurrency (e.g., BTC) and earning a profit based on two assets (e.g., BTC and BUSD). In addition to users receiving additional earnings according to the locked product, they can also increase their potential income according to 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 to a coin in pairs and a profit. In contrast, with a Not Exercised investment, the investor only gets a rate of return. There are some principles when investing in Dual Investment as follows:

  • Users can sign up with stablecoins USDT and BUSD or BTC.
  • The so-called rate of return (APY) is calculated on a yearly basis.
  • Users can subscribe to products for a predefined period of time (up to 30 to 60 days or even very short 7 to 15 days).
  • A completed subscription cannot be cancelled, it is necessary to wait until the end of the product’s expiration date, which is stated in its details.
  • Each product of Dual Investment Binance has a different profit calculation.

How to calculate Up-and-Exercised product profit?

  • An Up-and-Exercised product is executed when the price of the underlying asset rises above a predetermined price, the initial deposit is converted to the alt currency (BUSD/USDT) at the specified price. before. The user then receives the set crypto at the set price and the profit converted to the alt currency. Profit is calculated by 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 initially deposited cryptocurrency, calculated by the formula: subscription fee * [1 + (APY% * Deposit Days / 365)]

Example 1: Let’s say 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 above or equal to $49,000, BTC rises 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 yield. The total amount that person received after payment is: (149,000)[1+(50.07%*7/365)]=49,470 BUSD.
  • If the final settlement price of BTC is below $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 product profit 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)].
  • Conversely, Down-and-Practice product does not execute if the value of the underlying asset is higher than the predetermined price on the delivery date, the user will get back the deposited crypto 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: Let’s say 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 47,000USDT. On the expiration date, one of two situations occurs as follows:

  • If BTC price is higher than 47,000USDT, product is not executed, 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 47,000USDT, the product drops and is executed, the user’s 10,000 USDT is exchanged to BTC at the price of 47,000USDT plus interest. The total amount that 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: Log in to your Binance account. Register using the link below:

* See more: The complete guide Binance from a to z

Step 2: Access the Dual Investment feature: Click the Earn tab, select Dual Investment. Scroll down to the Dual Investment area, select Go to Dual Investment.

 Go to Dual Investment

Step 3: Subscribe Dual Investment:

Select the Up-and-Exercised or Down-and-Exercised product with desired duration and APY, click Subscribe on the Dual Investment page.

Subscribe Dual Investment
  • If you join Dual Investment for the first time on Binance, you need to take a knowledge test, click Start Quiz to do it (no need to do this step next time). The answers to the quiz “Dual Investment Tutorial & Quiz”.
  • A window pops up, enter the number of properties you want to participate in Duel Investment, read and agree to the box Accept the terms of service, then select Subscribe.

Conclusion

Above are some instructions to help you make double profits using the Dual Investment feature on Binance. Participants need to know that high returns always come with risks and are not guaranteed. The strike price on this feature is fixed and will not change. APY is constantly changing and depends mainly on strike price, remaining deposit days, and price movements. Once you have signed up for the Dual Investment product, the APY will be locked during the deposit days and will remain unchanged during that time. If you want to learn more passive investment features with guaranteed returns and excellent safety, see more: How to use the Binance Savings feature?

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