Binance Dual Investment: How Does It Work?

Binance Dual Investment is a high-yield financial product offered by Binance that allows users to deposit and earn a return on two different assets, such as BTC, BUSD, or USDT. The product offers two types of investment options: Buy Low and Sell High, allowing users to purchase or sell cryptocurrency at a desired price and date in the future while earning rewards regardless of market direction. While Dual Investment offers the potential for high returns, it also carries risks due to the volatile nature of the crypto market. Subscriptions are typically short-term, ranging from 7 to 60 days, and the annualized rate of return is fixed. Binance provides a step-by-step guide to assist users through the subscription process, and users can view their Dual Investment assets by accessing the Orders > Dual Investment Order section on the platform.

Binance Dual Investment risks

Binance Dual Investment is a high-yield structured financial product that allows users to buy or sell cryptocurrency at a desired price and date in the future while earning rewards regardless of market direction. While it is a versatile and potentially profitable investment option, it is not without its risks. Here are some key risks associated with Binance Dual Investment:

Market Price Volatility Risk

The crypto market is known for its high volatility, and this poses a significant risk for investors. When you commit to a Dual Investment product, you lock in a future buy or sell price based on your predictions. However, the market could move in an unexpected direction, causing you to miss out on more favourable opportunities. For example, if you set a "Buy Low" target and the market price drops significantly below your target, you may end up buying at a higher price than the new market norm.

Opportunity Cost

With Dual Investment, your assets are locked until the settlement date. During this period, you may be unable to take advantage of other investment opportunities, including favourable market movements that could offer higher returns.

Interest Rate Fluctuation

While the interest earned on Dual Investment products is attractive, it's important to remember that these rates are fixed upon subscription. This means that even if market interest rates increase, you will continue earning interest at the lower, fixed rate.

Reference Price Readjustment

The reference price mentioned in the product details may be readjusted according to the price on the Spot market, up to 24 hours after the start of the offer period. This could potentially impact your investment outcome.

Payment in the Least Valuable Coin

At maturity, you may receive payment in the coin that is worth the least of the two in the pair if the threshold has been reached. This means that you could end up paying more for a cryptocurrency than its current market value, resulting in a loss.

It is crucial to remember that Dual Investment is not a risk-free investment. Before making any investment decisions, it is important to carefully read and understand the product terms and conditions, conduct your own research, and assess your risk tolerance. Binance is not liable for any losses incurred from Dual Investment activities.

How to sign up for Binance Dual Investment

To sign up for Binance Dual Investment, you must first have an account on the Binance platform. Once your Binance account is open, follow these steps:

• Go to the Finance tab, then click on the Binance Pool option.
• Click on the Dual Investment tab. Here, you will see a list of different products with unique annualized rates of return, delivery dates, and strike prices.
• Search for the cryptocurrency you want to invest in. You will see the APY for the asset and its current market price.
• Choose the asset by clicking on it, then select either the "Sell High" or "Buy Low" product.
• Click the edit button next to the target price and select a subscription. Then, click "Next Step".
• Enter the amount you want to invest and click "Next Step".
• You will then see the winning scenarios. Click the checkbox next to Case 1 and Case 2 to view the details of each scenario.
• Click "Subscribe" and then "Confirm".
• Read the terms of use carefully and check the box to confirm that you agree.

Please note that Dual Investment is not a risk-free investment. The crypto market is highly volatile, and there is a risk of losing money due to market price fluctuations. Be sure to read through the product terms carefully before making any investments.

Binance Dual Investment glossary

• Annualized Rate of Return: The interest rate if the rate of return is stretched over 360 days. For example, a 1% rate of return over 30 days would be an annualized rate of 12% (1% divided by 30 days, multiplied by 360 days).
• APY: Annual Percentage Yield. The real-time APY will change depending on market fluctuations before a subscription is made, but it will be locked in once the subscription is done.
• Buy Low: One of two types of Dual Investment products. 'Buy Low' gives you the chance to buy crypto at a target price on a future date while earning rewards regardless of the market direction.
• Settlement Price: The price at which a trade is executed.
• Target Price: The desired price at which you want to buy or sell cryptocurrency.
• Sell High: One of two types of Dual Investment products. 'Sell High' gives you the chance to sell crypto at a target price on a future date while earning rewards regardless of the market direction.
• Strike Price: The strike price is the price of an option contract. The reference strike price is not the final strike price and is provided for reference only. The final strike price may be adjusted according to spot price changes as of subscription closing time.
• Spot Price: The current market price of an asset.
• Spot Account/Wallet: The account where your funds will arrive within 48 hours when Dual Investment products expire.
• Subscription: The act of committing your crypto holdings to a Dual Investment product.

How to view your Dual Investment assets

To view your Dual Investment assets on Binance, follow these steps:

• Log in to your Binance account.
• Navigate to the "Finance" or "Wallets" tab, depending on your platform.
• From the Finance tab, select “Binance Pool” and then click on the “Dual Investment” tab. From the Wallets tab, click on "Earn" and then tap on the "Earn History" icon.
• In the Finance tab view, you will see a list of different products displayed, such as BTC, USDT, and BUSD. In the Wallets tab view, tap "Flexible" to change the filter to "Dual Investment".
• Here, you can view your current subscriptions and redemption items. You can also enable, disable, or edit the Auto-Compound plan.
• To view specific asset details, go to " [Assets] - [Earn] - [Dual Investment] - [Details]". Alternatively, go to " [Wallets] - [Earn]" and tap " [By Product]" to check your holdings and edit the Auto-Compound plan.
• In the "Assets" tab, you can also check the balance of your assets.

Remember that Dual Investment is a high-yield structured financial product. It allows you to buy or sell cryptocurrency at a desired price and date in the future while earning rewards regardless of market direction. There are two types of Dual Investment products: "Buy Low" and "Sell High". Always remember to carefully consider the risks involved and read the product terms before investing.

The two types of Dual Investment products

Binance Dual Investment, also known as Dual Saving, is a high-yield structured financial product that allows users to deposit a cryptocurrency (e.g. USDT) and earn a return based on two assets (e.g. USDT or BTC). The two types of Dual Investment products are "Buy Low" and "Sell High".

Buy Low

The "Buy Low" option gives users the chance to buy crypto at a target price on a future date while earning rewards regardless of the market direction. For example, if a user wants to buy BTC with USDT in 2 weeks when the target price is $50,000. If the target price is not reached (Settlement Price ≥ Target Price), the user won't buy BTC and will instead receive their subscription amount and rewards in USDT. If the target price is reached (Settlement Price ≤ Target Price), the user will buy BTC at $50,000 using their subscription amount and rewards.

Sell High

The "Sell High" option allows users to sell crypto at a target price on a future date while earning rewards regardless of the market direction. For example, if a user wants to sell BTC into USDT in 2 weeks when the target price is $80,000. If the target price is reached (Settlement Price ≥ Target Price), the user will sell their BTC, including the subscription amount and rewards, at $80,000 into USDT. If the target price is not reached (Settlement Price < Target Price), the user won't sell their BTC and will receive their subscription amount and rewards in BTC.

It's important to note that Dual Investment is not a risk-free investment and there is a possibility of losing money due to market volatility. The funds are locked up once subscribed, and users won't be able to access them until the Settlement Date.

Frequently asked questions