Top 6 Dual Investment Trading Strategies
Table des matières
Introduction
1. Taking profits
2. Buying the dips
3. Growing your HODLed crypto
4. Growing your stablecoin stash
5. Compound earning in a short-term volatile market
6. Double-sided positions
Closing thoughts
Top 6 Dual Investment Trading Strategies
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Top 6 Dual Investment Trading Strategies

Top 6 Dual Investment Trading Strategies

Intermediate
Publié(e) May 6, 2022Mis à jour Jun 29, 2022
7m

TL;DR

  • With Dual Investment, there’s an opportunity to employ different strategies depending on your market view. 

  • For less-experienced investors, you can easily take profits, buy dips, and earn interest on your crypto and stablecoin holdings. 
  • For experienced investors, it’s possible to enter multiple Dual Investment positions and take advantage of a short-term volatile market.


Introduction

For users looking to diversify their investments, Binance Earn’s products are a good place to start. Dual Investment is one of the more advanced ways to earn and provides a way to buy or sell a cryptocurrency at your desired price at your desired date in the future. Regardless of your position, you’ll earn a high-interest income no matter which direction the market goes.

So now we understand the basic concept, how exactly do we start earning? There are, in fact, many ways to use Dual Investment. Each one can complement your trading strategies and predictions for the market. Let’s get stuck in!


1. Taking profits

Although it can be easy to get carried away, it’s always good to take some profits when you can. With this particular Dual Investment strategy, you can benefit from additional returns and realize some of your crypto gains in the future.
1. Select the Sell High Dual Investment product on Binance Earn. In this example, we’ll look at an Ether (ETH) product. The current ETH price is $2,900 (all prices given in BUSD).

2. We’ll set a Target Price of $3,500 and the Settlement Date for a week’s time. 

3. We’ll then have the chance to sell the deposited ETH at the Target Price if it’s reached on the Settlement Date in a week. If ETH is 3,500 BUSD or above on the Settlement Date, it will be sold for BUSD.

This removes the situation of forgetting to take your profits or not doing so due to greed! At the same time, you’ll also be earning APY.

4. If your Target Price isn’t reached on the Settlement Date, you’ll still earn APY on the deposited ETH and receive the ETH back.

 

2. Buying the dips

Buying the dip is another common trading strategy that allows you to take advantage of a market downturn. By purchasing at a lower price, you anticipate a later market upturn when you can sell for a profit. With Dual Investment, it’s simple to plan for potential future dips while earning an additional interest income.

1. Select the Buy Low Dual Investment product on Binance Earn. In this example, we’ll look at a BTC product purchasable with Tether (USDT). BTC’s current price is $39,000.

2. We’ll choose a Target Price of $36,500 for BTC with a Settlement Date in one week.

3. If the Market Price is $36,500 or lower on our Settlement Date, for example $36,000, BTC will be purchased at our Target Price. You’ll also get your earned interest too. 

4. If your Target Price ($36,500) isn’t reached on the Settlement Date, you’ll still earn APY on the deposited USDT before receiving it back.

 

3. Growing your HODLed crypto

When entering into Dual Investment, you don’t always have to be betting on market movements. In fact, you can make good use of the product even when the price remains relatively stable or doesn’t reach your Target Price. Here, we’re just looking to make returns on crypto through interest.

1. Select the Sell High Dual Investment product on Binance Earn. In this example, we’ll look at a BTC product. BTC’s current price is $39,000.

2. We’ll choose a Target Price of $40,000 for BTC with a Settlement Date in one week.

3. To simply earn APY, we hope that Bitcoin’s price remains stable or decreases and doesn’t meet the Target Price.

4. At the Settlement Date, BTC’s price is $38,000. This means you keep your deposited BTC and receive all earned interest. This provides an easy way to earn high interest on your crypto holdings.

 

4. Growing your stablecoin stash

Many of us keep stablecoins as a way to keep captured profits in the blockchain ecosystem. But that doesn’t mean that we can’t make them start earning too. This strategy is similar to the previous one, in that we hope the Target Price isn’t reached.
1. Subscribe to a Buy Low Dual Investment product on Binance Earn. In this example, we’ll look at a MATIC product purchasable with USDT. MATIC’s current price is $1.20.

2. We’ll choose a Target Price of $1.10 for MATIC with a Settlement Date in one week.

3. To earn stablecoin APY, we hope that MATIC’s price remains stable or increases and doesn’t meet the Target Price.

4. At the Settlement Date, MATIC’s price is $1.22. This means you keep your deposited USDT and receive all earned stablecoin interest. This provides a simple way to earn high interest on your stablecoin holdings.


5. Compound earning in a short-term volatile market

Our previous four strategies have provided simple ways to earn interest and buy or sell at preset prices according to your strategy. However, there’s also the opportunity for more advanced plays with Dual Investment.

As always, investing has an inherent risk. This strategy should only be used by experienced investors who feel comfortable in volatile markets. With this application, we expect market volatility but have no clear view of whether the market is bullish or bearish.
To take advantage of this situation, we need to use a combination of Buy Low and Sell High products. Let’s look at an example.
1. Select the Sell High Dual Investment product on Binance Earn. In this case, we’ll look at a BNB product. BNB’s current price is $395.

2. We’ll choose a Target Price of $420 for BNB with a Settlement Date in one week.

3. The market is volatile, meaning two things may happen. 

  1. If the Target Price isn’t met, you’ll keep your BNB and earned interest. You can create a new Sell High order, allowing you to earn more interest or sell for a higher price. 
  2. If the Target Price is met, you’ll sell your BNB at $420 per unit and gain interest. You can now place a Buy Low order, giving you the chance to purchase crypto at a lower price. 

4. Every time your Target Price is met, go for Dual Investment products in the other direction. If the Target Price is not met, continue in the same direction until the Target Price is met. 

5. Playing the market in this way lets you keep on buying lower and selling higher, all while compounding your returns.


6. Double-sided positions

Our final strategy has similarities with the previous one, but in this case, we open two positions simultaneously. To do this, you’ll need to hold two types of tokens: one in crypto (like BNB) and one in stablecoin (like USDT). Let’s see how it works if the price of BNB is currently $390. 

1. Use BNB to subscribe to a Sell High BNB Dual Investment product with a Target Price of $420 and a Settlement Date in one week.
2. Use USDT to subscribe to a Buy Low BNB Dual Investment product. Set your Target Price to $360 with a Settlement Date in one week.

3. The market is volatile leading to three possible outcomes: 

  1. The Target Price of both positions isn’t met as the price stays between $360 and $420. In this case, you’ll keep your original BNB and USDT deposits, as well as earned interest in both currencies. 

  2. The price of BNB reaches $420 or above, meaning the Sell High position’s Target Price is reached. Your BNB and accumulated interest will be sold for $420 per unit, and you’ll also keep your Buy Low USDT deposit plus earned interest. In conclusion, you get to take profit from selling BNB and also accumulate interest in USDT.
  3. The price of BNB reaches $360 or below, meaning the Buy Low position’s Target Price is reached. You’ll purchase BNB at your desired price and receive your interest, and you’ll also keep your Sell High BNB deposit plus earned interest. In conclusion, you get to buy BNB at a lower price while also accumulating interest in BNB.


Closing thoughts

There’s a lot more to Dual Investment than just earning interest and buying or selling. You can use the product as a way of planning your trading strategies with the added bonus of APY. So, if you’re looking for a way to diversify your investments, Dual Investment is a great product to explore.

Disclaimer: Dual Investment is not a principal-guaranteed product. Subscribed assets are locked and users are not able to cancel or redeem before the Settlement Date. If the market price goes far below your Target Price to buy on the Settlement Date, you will be buying at a relatively higher price than the market price, and vice-versa. Binance does not assume liability for any losses incurred from price fluctuations. Please read through the product terms carefully before subscribing.