Key takeaways:
- Auto-Compound is the new feature on dual investment that improves its propensity to yield profit
- With dual investment, crypto traders can Buy Low and Sell High, depending on the assets they own and their investment strategies
- Traders can use Dual Investment to increase the value of their crypto holdings, including stablecoins and common digital assets
- Auto-Compound has a basic plan and advanced plan, just as dual investment supports beginner mode and pro mode
The growth and development in the crypto sector have led to innovative features being introduced regularly. These features are all aimed at building sustainable, easier and faster ways through which transactions and trades can be completed seamlessly.
The Binance crypto exchange is a leading platform where professional and beginner traders can exchange and transact cryptocurrencies with ease. It provides a wide selection of coins, extremely low commissions, and sophisticated trading tools, like Dual Investment.
About Binance
As the largest crypto trading platform in the world, the Binance exchange offers some of the lowest transaction fees, and is also renowned for its crypto-to-crypto trading (crypto pairs). More so, its high liquidity feature enables users who pay with native BNB cryptocurrency tokens to receive discounts, unlike many other platforms.
Additionally, Binance has many cutting-edge security features, including hardware 2-factor authentication, a real-time monitoring system to identify suspicious activity, security alerts through email, and many other sophisticated security features. All these make Binance the platform of choice among crypto enthusiasts and users.
Dual Investment
Since investment is mostly aimed at buying at a low price and selling at a higher price, dual investment can be described as one of the safest investment products on Binance.
Binance Dual Investment provides an outstanding approach to take advantage of Buy Low and Sell High possibilities, while also giving users the chance to earn additional rewards. This means that users can get a high-interest yield during their subscription period no matter which direction the market flows.
Having understood what Dual Investment means, it is vital to take into account the two different types of Binance Dual investment products and how they work.
The two types of Binance Dual Investment products are:
- Buy Low
- Sell High
The ‘Buy Low’ product
In this type of Dual Investment, users can buy crypto of their choice at a lower price in the future. This makes it possible for them to stand a chance to earn a higher interest from their investment.
There are two major reasons why crypto users and investors can select the Buy Low Dual Investment:
- It allows users to leverage their current stablecoin holdings to purchase cryptocurrency at a price and time convenient for them, while also earning extra income
- Users also gain extra stablecoins by earning interest
The ‘Sell High’ product
In this type of Dual Investment, crypto users stand a chance to sell their existing cryptocurrency stored in their wallet at a higher price in the future.
There are also two major reasons why crypto users and investors choose the Sell High Dual investment:
- It allows users to increase earnings by selling their current cryptocurrency holdings at a price and date of their choice.
- Users also earn interest, thereby increasing the value of their cryptocurrency holdings.
Investing always carries a certain amount of risk. It is advisable that only experienced investors who are at ease in volatile markets should employ these techniques.
How to use Dual Investment on Binance?
Here is a simple step-by-step guide on how to subscribe to the Dual Investment feature on the Binance platform:
- Check out the Dual Investment page.
- Decide the coin you want to buy or sell.
- Opt to SELL HIGH or BUY LOW, as you please.
- Choose your “Target Price” and “Settlement Date” before making a purchase or sale.
- Enter the amount for the subscription.
- With the toggle button, select whether to enable or disable the Dual Investment Auto-Compound feature before submitting your subscription.
Other important information to understand before getting started with the Dual Investment feature includes:
- Dual Investment has the right to discontinue taking new subscribers at any time
- The currency that was used to sign up for a Dual Investment program is referred to as the “deposit currency”
- Dual Investment has the right to halt subscription sales at any time
- Prior to subscription, the APY will fluctuate in real-time based on market fluctuations, however, it will be locked in after the subscription is complete
- It is not possible to redeem Dual Investment products before the due date
- The term “Settlement Date” describes the day that transactions and redemption will be carried out
When to Use Dual Investment
There are various reasons you might want to employ Dual Investment, regardless of whether you’re an experienced trader or simply a long-term holder looking to generate a little more return.
Here are some reasons why it might be beneficial to use Dual Investment:
- To increase the amount of stablecoin you have, whereby you already have some stablecoin but want to continue to profit from them while holding them.
- To take advantage of higher interest yields and some of your investment profits by selling your crypto holdings at a Target Price.
- To buy the dip when the market is at a low point and sell at a higher price, enjoying additional interest yield.
- To get more profit while simply holding on to the crypto tokens in your wallet.
Auto-Compound
Your Dual Investment plan will be automatically renewed on the Settlement Date, thanks to a new feature called Auto-Compound.
Tuesdays and Fridays are designated as the BTC and ETH Settlement Dates. All other digital assets have a Settlement Date that occurs on Fridays.
With the Auto-compound function, your dual investment plan will be automatically renewed to the following settlement date. You just need to keep the Auto-Compound feature turned on. You can also turn on or turn off the feature 30 minutes before the Settlement Date.
When setting your plan, toggle on the [Auto-Compound] button to enable the Auto-Compound option. Then select either the basic plan or the advanced option.
This means that the system will help users to close their position or subscribe again to a new position on the settlement date. This depends on two factors, including the plan a user chooses (basic or advanced), as well as whether the target price is reached.
Understanding How Auto-Compound Works
There are two types of Auto-Compound plans that users can select depending on their experience and expertise:
- Basic Plan
- Advanced Plan
Basic Plan
There are two basic aspects to this plan depending on what happens to the target price on the settlement date:
- Auto-Compound will stop if the Target Price is attained. The position will be closed by the system, and returns will be distributed.
- In the event that the Target Price is not realized, Auto-Compound will carry on. Until the Target Price is reached, the system will continually subscribe to a new position, with settlement taking place on the following Settlement Date.
For example, your funds will automatically compound to a new Sell High position at the Settlement Date if the existing Sell High Target Price is not attained. Dual Investment will stop using the Auto-Compound feature once the Target Price is attained.
This plan is effective for users and investors aiming to maximize profit through the “Sell High” product in Dual Investment.
Advanced Plan
There are also two basic aspects to this plan depending on the Target Price before the settlement date:
- In the event that the Target Price is reached, the system will immediately subscribe to a new position, with settlement taking place on the next Settlement Date in the opposite direction.
- When the Target Price is met, for instance, and you subscribed to a Sell High product, an additional Buy Low position will be created for you by Auto-Compound.
- If the Target Price is not met, the system will automatically subscribe to a new position, with settlement taking place on the following Settlement Date in the same direction.
- In the event that the Target Price is not met, for instance, and you subscribed to a Sell High product, fresh Sell High position will be created for you by the Auto-Compound feature.
These two plans enable users and investors to make profits and also safeguard them from incurring losses. The Auto-compound feature helps set dual investment apart from most other crypto investment products.
Another impressive thing about dual investment is that it can be used by crypto traders of all experience levels, all thanks to its two distinct modes – beginner mode and pro mode.
Beginner Mode
Beginner Mode is suitable for new Dual Investment users. It offers a step-by-step manual to assist users with the Dual Investment subscription procedure.
Investors can use the toggle button to enable or disable the Beginner Mode once they have become conversant with the whole process.
Pro Mode
This is for seasoned investors who can navigate their way through the whole dual investment process. A user’s expertise will determine if the beginner mode or the pro mode can be implemented by them.
Wrapping Up
No matter which way the market swings, Binance Dual Investment enables you to generate passive income. Dual Investment can be a good way to diversify if you’re an investor or trader with a Binance account. This is especially true if you want to do more with your HODLed coins than just stake or lend them.
With the security of a Binance product, you can try to hedge market-beating prices with increased interest while still making money off of your market actions. Be sure to conduct your own research before using the Dual Investment Feature, given the fact that the crypto market is a volatile space.
