Before starting the main article, we need to talk about - what is currency-standard thinking?
The opposite concept of the currency standard is the gold standard. The gold standard is easy to understand. It uses cash as the settlement currency. For example, when we usually conduct contract transactions, the final settlement is USDT; while the currency standard corresponds to using a certain cryptocurrency as the settlement currency, such as #BTC or #ETH ;
Take Uniswap as an example. Initially, the currency available for pool transaction settlement is Ethereum as the standard trading pair currency. What is finally settled in the hands of traders in the buying and selling room is ETH or you use ETH for buying transactions;
"The real OGs all use currency-standard thinking to speculate on currencies." I have often heard people say this in my five or six years of experience in the industry. At first, I didn't understand what currency-standard thinking was, but when I heard such an unfamiliar adjective, I feel like it’s very classy
But after understanding it, I believe that this kind of currency-standard thinking is a real manifestation of consensus in the market, and it is truly a way to collect and hold currency without selling it. Most people come to the crypto market for the purpose of exchanging cash, so investors who have this kind of currency-standard thinking are not in the majority, but on the contrary, there are even a very small number.
Many trading platforms on the market have currency-based investment transactions and financial management tools. Recently, I discovered a very competitive financial management tool that can "guarantee capital or even win money" for investors with currency-standard thinking.
1. Product Introduction - Dual Currency Investment
Dual Currency Investing gives you the opportunity to buy and sell cryptocurrencies in the future at a target price and date, earning high rewards regardless of market trends.
This is the official simple product introduction of #Binance , but in fact, the dual-currency investment product is an option-type financial product:
This product will give you the right to buy or sell a certain currency at a certain price set in advance at a certain time in the future. At the same time, this product is different from traditional call and put options. You only need to buy it, regardless of whether you achieve your goal. If you change the price, you will be given interest (only the currency of settlement is different)
So in essence, this product is more like a two-way hedging option portfolio. Considering that most friends who read this article may not know much about options, I will not expand on options in detail.
This article will try to let you understand this product in a more concise and easy-to-understand language, and tell you: why Binance’s product is competitive and why you should choose it
2. Market competitiveness analysis
In fact, the dual-currency investment product is very homogeneous on the market and is available on almost every trading platform. Because the bottom layer of this product is supported by options, it is not difficult to implement technically.
At the same time, the interest rate of this product is subject to real-time market price fluctuations. However, during my statistics on different platforms with the same market price, I found that Binance’s dual-currency investment product is very competitive among short-term settlement products. Let us use Statistics speak:
At a certain time yesterday, I calculated the annual interest rate comparison of the same product #BTC 2 on various platforms. The selected platforms all combined: ease of access for Chinese users, popularity and popularity of use.
(The reference price at that time was 30,000, and the target price was uniformly set at 30,500. OKX did not have an option of 30,500, so 306,000 was selected as an alternative)
The results show that Binance 2’s dual-currency investment products have leading market competitiveness (the mid-term and long-term interest rates cannot be unified due to the cycles and ranges of each platform, so statistics are not made)
Because the product options counted are for 2 dates, it can be seen from the picture above that it is a very competitive product:
So if you want to use this product, Binance’s two-date dual-currency investment is a product worth choosing;
And if you want to try to understand the world of options in the future, I think it is also a good choice to start with this option financial product, which will be easier.
3. Product usage logic
Why is this product very suitable for investors with currency-based thinking? Because from the logic of product use, you can "guaranteed capital without losing money." If the frequency is high enough, it can be said to be an investment choice that can advance and attack and retreat and defend, not just simple financial management.
Why? Next, I will briefly introduce the logic of this product.
If the current price of Bitcoin is 30,000, and you buy a product that sells Bitcoin at a price of 30,500 on the 2nd:
If the price is greater than or equal to 30,500 after 2 days, you will receive 30,500 USDT + U-based interest;
If the price is less than 30,500 after 2 days, you will receive 1BTC+BTC-based interest;
So in principle, you will get two results from purchasing this product: the growth of USDT balance or the growth of BTC balance.
4.Potential risks
After hearing the above, many people may not have come back to their senses: Isn’t this a win no matter what?
Just imagine, as a gold standard investor, you must care more about the changes in the total value of the asset USDT. If after you purchase the product, the BTC market fluctuates too much and drops a lot in the two days, even if interest is added, your total assets will also decrease under the gold standard thinking.
This is also the risk of this product, and why I would recommend investors with currency-based thinking to use this product: you will reap the growth results no matter what.
Therefore, based on the above principles and risks, if you are a currency-based investor, you can also choose longer-term products in the bear market. It is also a good choice. You will get higher than expected returns when the bull market comes. Current USDT balance or higher growth Bitcoin balance
5. Summary
As an investment and trader with a relatively stable style, I believe that using an investment/financial management product suitable for encryption cannot blindly pursue very high interest rates, especially for mainstream currencies such as Bitcoin, Ethereum, etc., we need to consider first The security of the platform should be the primary consideration for your needs, so that you can survive the bulls and bears stably, and Binance is undoubtedly the first platform worth choosing at the moment.
And if you are also a currency-based Holder, when the market is down, you can also choose products that are sold at relatively high prices with a longer period, which can also make you feel comfortable in the bear market~
In short, [Dual Currency Investment] is a product with determinable returns and is very suitable for investors with a currency standard mindset. However, for investors with a gold standard mindset, there are still some potential risks caused by market fluctuations. When we allocate assets, we should comprehensively consider our risk-taking ability instead of being fooled by high interest rates~
