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Binance Double Investing is a compound investment product that allows you to earn returns depending on the price movement of a pair of cryptocurrencies. This type of investment combines the features of high-interest deposits with cryptocurrency options, giving investors the opportunity to earn returns regardless of market direction. Here's a detailed explanation of how dual investing works:
### Basic steps for dual investment
1. **Choose a currency pair**:
- Choose the currency pair you want to invest in. For example, you might choose BTC/USDT if you want to earn either Bitcoin or the digital dollar USDT.
2. **Determining the investment period**:
- Determine the investment period that suits you. The duration may be short (such as one day) or long (several weeks).
3. **Determining the execution price**:
- Choose the strike price, which is the price you expect the underlying asset (such as BTC) to reach when the investment period expires. This price is pre-determined when you start investing.
4. **Deposit Assets**:
- Deposit the amount you wish to invest in one currency of the pair (for example, deposit BTC or USDT).
5. **End of investment period**:
- At the end of the investment period, the price of the underlying asset (e.g. BTC) will be evaluated against the pre-determined strike price.
### Possible scenarios
1. **If the price of the underlying asset at the end of the period is higher or equal to the strike price**:
- Your investment will be converted to the second currency in the pair (for example, if the investment was in BTC and the execution price was achieved, the amount will be converted to USDT) with the returns earned added.
2. **If the price of the underlying asset at the end of the period is less than the strike price**:
- The underlying asset will be held in the same currency as it was initially deposited (for example, if the investment is in BTC and the strike price is not achieved, the assets will remain in BTC) with the returns earned added.
### Practical example
Let's say you choose the BTC/USDT pair to invest for 7 days with a strike price of 40,000 USDT per BTC.
- If the price of BTC at the end of the 7-day period is greater than or equal to 40,000 USDT, your investment will be converted into USDT and you will receive the payout in USDT.
- If the price of BTC at the end of the 7-day period is less than 40,000 USDT, your investments will remain in BTC and you will receive the due returns in BTC.
### Returns and risks
- **Returns** 📈: Returns depend on the execution price and the specified period. The longer the duration or the closer the strike price is to the current price of the underlying asset, the higher the returns.
- **Risks** ⚠️: Risks lie in the change in the price of the underlying asset. If the strike price is not achieved, you may receive the assets you deposited in the same currency but at a lower value if prices fall significantly.
### Important Notes
- Dual investing is suitable for investors who want to earn additional returns in a volatile market environment.
- It is important to understand the risks associated with this type of investment and ensure that it is compatible with your financial strategy and investment objectives.
In short, dual investing in Binance gives you the opportunity to earn investment returns based on your predictions of cryptocurrency price movement while providing some protection from market fluctuations.
