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Dual-currency investments are a great way to earn additional income regardless of the market situation.
Use the Dual Currency Investment Buy Low feature to buy cryptocurrency at a lower price in the future and earn interest.
Use the dual-currency investment "Sell High" feature to sell your cryptocurrency at a higher price in the future and earn interest.
If the target price is reached, the deposit will be used to buy/sell cryptocurrency. If the price is not reached, the deposit will be returned to the user along with interest.
You can combine your earnings and transfer positions using the auto-accumulate feature.
Introduction
To receive income from investments, you need to buy and sell profitably, be it the stock or cryptocurrency market. Binance's Dual Currency Investments allow you to earn additional income through the Buy Low and Sell High features. Let's take a closer look at their work.
The main advantages of dual-currency investments
Binance Dual Currency Investments offer the following benefits:
Profitable buying and selling: Dual-currency investing allows you to buy cryptocurrency at a lower price or sell at a higher price.
High interest rate of return: opportunity to earn passive income regardless of market direction.
Diversity of choice: a wide range of assets and the ability to set a price and target date.
No trading commissions: Zero commissions when reaching a target and executing a buy or sell order.
How do dual-currency investments work?
Binance's dual-currency investments allow you to buy a cryptocurrency at a lower price or sell it at a higher price over time. With this feature, users can earn interest income during the subscription period regardless of the market direction. For many users, dual-currency investing is an alternative to spot trading with limit orders on the Binance trading platform.
There are two categories of dual-currency investment products: “Buy low” and “Sell high”.
Buy Cheap products allow you to buy your desired cryptocurrency at a lower price in the future. Sell High products allow you to sell your existing cryptocurrency at a higher price in the future.
Function of dual-currency investments “Buy cheap”
The Buy Cheap feature has two uses:
1. Buying cryptocurrency for stablecoins at the desired price and on the desired date and receiving additional income.
2. Accumulation of stablecoins through interest.
Function of dual-currency investments “Sell high”
The Sell High feature also offers two use cases:
1. Selling existing cryptocurrency at the desired price on the desired date and receiving additional income.
2. Accumulation of cryptocurrency through interest.
Trading Strategies
The “Sell High” and “Buy Low” functions can be used in various trading strategies. Be sure to check out our guide to learn about the best dual-currency investing strategies. They will help you maximize your income and achieve your investment goals.
Basic terms of dual-currency investments
Before we get into how these products work, there are a few terms that need to be defined:
1. Subscription amount - the amount contributed when subscribing to dual-currency investments.
2. Target price - a set price at which the user wants to buy or sell cryptocurrency.
3. Settlement date is the set date when the user wants to buy or sell cryptocurrency. On this day the user receives his income. At 08:00 (UTC) a check is made to see if the target price has been reached.
4. Settlement price is the average market price for 30 minutes before 08:00 (UTC) on the settlement date. The execution of a Buy Low or Sell High order depends on the settlement and target prices.
5. Annual Percentage Yield (APY) - percentage income for blocking cryptocurrency in dual-currency investment products for a year. For example, if the APY is 36.5%, then the daily effective yield estimate would be 36.5% / 365 days = 0.1%.
6. Subscription period - the number of days from the date of subscription to the settlement date.
How to subscribe to dual-currency investments
Using Binance dual-currency investments is very simple - you just need to know how the product works. To subscribe to dual-currency investments, follow these steps.
1. Go to the dual-currency investing page.
2. Select a cryptocurrency to buy or sell.
3. If you are using the product for the first time, take the dual-currency investment knowledge test.
4. Select Buy Low or Sell High.
5. Specify the target price and settlement date.
6. Specify the subscription amount, agree to the terms of use and click [Subscribe].
7. Done! Funds will be credited within 6 hours of verification (08:00 UTC) on the settlement date. You can check previous orders on the bi-currency investment history page.”
Beginner mode
If you are not familiar with dual-currency investments, you can activate the “Beginners Mode”. It has a step-by-step guide to help you successfully sign up for the product.
Once you're comfortable with dual-currency investing, you can use the same toggle button to turn off Beginner Mode and start enjoying the advanced functionality.
How is profit calculated?
In dual-currency investing there are two components of profitability: interest income and subscription amount. The size of the final income will depend on whether the target price was achieved or not.
Let's look at how interest income is calculated. The following formula is used for calculation:
Interest income = subscription amount x APY% x subscription period (in days) / 365
In the case of the dual-currency investment function “Buy Low”, there are two possible scenarios.
1）The target price is reached on the settlement date (i.e. the price is at or below the target price):
a) The subscription amount and interest income are used to purchase cryptocurrency at the target price.
b) Formula: (subscription amount + interest income) / target price
2）The target price is NOT reached on the calculation date:
a) The user receives the subscription amount and interest income without conversion.
b) Formula: subscription amount + interest income
In the case of the bi-currency investment “Sell High” function, there are two possible scenarios.
1）The target price is reached on the settlement date (i.e. the price is at or above the target price):
a) The subscription amount and interest income will be used to sell the cryptocurrency at the target price.
b) Formula: (subscription amount + interest income) x target price
2）The target price is NOT reached on the calculation date:
a) The user receives the subscription amount and interest income without conversion.
b) Formula: subscription amount + interest income
At 08:00 UTC on the settlement date, Binance determines whether the settlement price is at the target price. The settlement price is the average market price 30 minutes prior to 08:00 (UTC) on the settlement date. If the target price is not reached, you will receive your funds back within 6 hours of verification (08:00 UTC) on the settlement date.
How to automatically increase income from dual-currency investments
One popular investment strategy is accumulating income to increase profits. Dual-currency investments can automate this process using the auto-accumulation feature.
If you have an open dual-currency investment position, auto-accumulation allows you to automatically subscribe to a new position on the settlement date with the next available settlement date.
Settlement dates for BTC and ETH are every Tuesday and Friday. All other digital assets are settled every Friday. 30 minutes before the calculation date, you can turn the auto-accumulation function on or off.
There are two auto-accumulation tariff plans:
1. Basic tariff
If the target price is reached, auto-accumulation will stop. The system will close the position and distribute the profit.
If the target price is not reached, auto-accumulation will continue. The system will automatically subscribe to a new position with settlement on the next available settlement date until the target price is reached.
If the current Sell High target price is not reached, funds will be automatically transferred to a new Sell High position on the settlement date. If the target price is reached, dual-currency investments will turn off the auto-accumulation function.
2. Advanced tariff
If the target price is reached, the system automatically subscribes to a new position in the opposite direction with settlement on the next available settlement date.
If the target price is not reached, the system automatically subscribes to a new position in the same direction with settlement on the next available settlement date. For example, if you subscribed to the “Sell high” product, but the target price was not reached, the auto-accumulation system will open a new “Sell high” position.
In our example, if the Sell High target price has been reached, the dual currency investment will open a new Buy Low position with settlement on the next available settlement date. If the target price has not been reached, then on the settlement date the funds will be automatically transferred to a new position “Sell high”.
Summary
Dual-currency investments are a great way to earn passive income regardless of the current market situation. If you are an investor or trader with an account on Binance and want to do more than just participate in staking or hold assets, then dual-currency investing is a good opportunity to diversify your activities.
You can monetize your market insight and hedge prices with added interest with Binance's trusted product. As always, we encourage you to research all important information yourself before investing your funds.