There are several strategies to revenue from the cryptocurrency marketplace this kind of as staking, farming, trading. But there is a unique approach that can deliver optimum revenue and restrict a specific element of the danger, that is Double investment. Let’s find out far more about this investment approach with Coinlive via the report beneath!
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What is double investment?
Dual Investment is a instrument for the automated investment approach for two kinds of assets (generally utilized by pairs of assets – stablecoins) that assistance end users earn far more from these two assets.
With the Dual Investment approach, end users can guarantee successful development on any place when the marketplace is depressed and sideways or growing by predicting the potential rate of that asset.
Simply place, Dual Investment will allow you to invest in or promote cryptocurrencies on rate and date you want to in the potential and at the identical time reap higher returns irrespective of which path the marketplace goes.
Advantages of working with double investment
- Buy very low or promote higher: You can invest in very low-priced cryptocurrency or promote higher-priced cryptocurrency
- High-effectiveness: You will earn a good passive revenue irrespective of which path the marketplace goes
- Selection varies– you can select from a assortment of sources and set the target rate and date you want
- No transaction costs: You pay out no transaction costs when the target is met and when the “Buy Low” or “Sell High” orders are executed.
Purpose of working with Dual Investment
Whether you are an knowledgeable trader or just a HODLer on the lookout to make a very little further revenue, there are a lot of causes to use Dual Investment. Some of the far more widespread causes involve:
- Closure: Sell the cryptocurrency you hold at Target Price to revenue from your investment and get an further higher return
- Buy very low: Buy cryptocurrencies at the target rate when the marketplace is bearish and delight in an further return
- Adding cryptographic assets: You have cryptocurrencies and want to earn further revenue by holding them
- Add far more stablecoin assets: You have stablecoins and want to earn far more with stablecoins.
Key terms in Dual Investment
Before discovering how these merchandise get the job done, let us clarify a handful of terms you have to have to know:
- Subscription quantity – Amount of the deposit on registration of Dual Investment.
- Price label – The rate at which you want to invest in or promote cryptocurrency.
- Settlement date – Set the date you want to invest in or promote cryptocurrency. You will also acquire your return on investment on this day. 07:00 (UTC) it is time to make a decision if the target rate has been reached.
- Liquidation rate – Average marketplace rate for thirty minutes in advance of 07:00 (UTC) on the settlement day. The settlement rate and the target rate figure out no matter whether you can invest in very low or promote higher.
- Annual percentage return (APY) – The curiosity you earn if you block your cryptocurrency in the Dual Investment merchandise for a single 12 months. For instance, if your APR is 36.five%, the estimated everyday curiosity fee is 36.five% / 365 days = .one%.
- Subscription time period – Number of days from the Registration Date to the Payment Date.
How Dual Investment functions
There are two kinds of Dual Investment merchandise, namely: “Buy Low” and “Sell High”.
Product Buy very low will allow you to invest in the cryptocurrency you want (this kind of as ETH) at a very low rate in the potential with stablecoins (BUSD or USDT).
- Achieving targets: On the Payment Date, if Market rate =the target currency (ETH) will be bought.
- Did not reach the purpose: On the Payment Date, if Market price> Target rateyou will hold the stablecoin.
Either way over, you will earn curiosity on the stablecoin initial. After reaching the Target Price, the quantity you have registered and the curiosity revenue will be utilized to invest in ETH.
Product Sell high will allow you to promote your present cryptocurrency (this kind of as ETH) at a higher rate in the potential (for BUSD).
- Achieving targets: On the Payment Date, if Market Price> = Target Priceyour ETH will be offered for BUSD.
- Failure to reach the purpose: On the Payment Date, if Market rate
you will keep the ETH.
In either case above, you will earn interest on the existing currency (ETH) first. Once the target price is reached, the amount you have registered and the interest income will be sold for BUSD.
How to use Dual Investment on Binance
Among the exchanges offering Dual Investment, Binance Dual Investment is an easy to use and manage product for beginners. Here’s how to use Binance Dual Investment.
Step 1: Log into your Binance account, click [Earn] – [Dual Investment].
The default mode will be Beginner mode. Beginner mode is designed for new Dual Investment users. This mode provides detailed instructions on the Dual Investment product registration process. You can turn the mode on or off by clicking the button next to it [Chế độ người mới bắt đầu].
Step 2: Search for the cryptocurrency you want to invest in. You will see the APR and the current market price of the asset. Click on the property to get started.
Step 3: Select the product [Mua thấp] or [Bán cao]. Import [Giá mục tiêu] and choose [Ngày thanh toán]. Click [Đăng ký].
Then choose the amount of assets you apply for and follow the next steps to complete the registration, furthermore, Binance Dual Investment will give you an overview of the profit you will receive during the expiration period.
Notes to watch out for when using Dual Investment
The Dual Investment product has some risks.
- Registered goods will be blocked and you will not be able to cancel your subscription or collect the goods before the payment date.
- If the price deviates from the target price, you will lose the opportunity to buy or sell at a favorable price.
- Transactions can only take place based on the price on the settlement date.
So you should have risk reduction methods like:
When registering the item I sell at a high price, you can open a short with the same volume with which you registered in Binance Dual Investment, your position is constant over time but you can still control the APR rate of return. Note, you can lose money if the market is volatile and your short is liquidated.
Or when you sign up buy at low price, you can also open a short order with the same volume and stop the loss right in the price area corresponding to the profit rate when you participate in Dual Investment to secure your current position. Therefore, you will have an area of insurance coverage that has a greater profit than usual. However, this can cost you the opportunity to buy at the price you want and your profit percentage will be lost during times of high volatility, but it will be partly insurance and an opportunity to increase the volume of tokens to hold for. periods when volatility plummets. Note that this method is for those of you who want to increase the amount of tokens they have
Should I use Dual Investment or not?
Using the Dual Investment method of investment is risky, so managing your capital and taking a protective stance when using this investment strategy is essential during times of high market volatility to avoid unnecessary losses. Therefore, it can be seen that Dual Investment is a relatively reasonable investment tool for busy people who don’t need too much time to pay attention to the market.
However, this is not investment advice and Coinlive takes no responsibility for your investment decisions. I wish you success and earn a lot from this potential market.
