Hello friends, hope you are all doing fine. Using crypto Blockchain, there are plenty of ways to lose or gain your money depending on the tool you choose. Just a couple of days back, I came across a simple tool on binance's earning section called "Dual Investment". It literally means you would buy a certain coin in a pair when the price of that coin hits the target price and get interest as well for waiting through the period. Let me tell you in detail what I had learnt about Dual Investment in these past couple of days.
Basically, if you have a stable coin and are looking for investment but you have less than that of the spot trading minimum balance required to invest. Dual investment works like in a given period of time if the price of the opposite coin in the pair hits the target you choose depending on the options provided by the exchange, then you will get those coins along with interest for keeping the stable coin locked with the exchange at the price of the target. If the target price of the opposite coin in the pair doesn't hit, then your stable coin will be released along with the same interest you agreed while choosing the period. This is called buy low.
There is another option called sell high where the procedure goes same as above but the coins are different. In sell high you will sell a coin like BTC or BNB if you hit the target price below then you would get the stable coin or you can keep the default coin along with the interest.
The only downside to this option is you may end up paying a high price to a coin if the price of that certain coin is past the target price to another low point. Another thing is the funds you have invested will be released only after the period ends and not before, which makes it difficult when you need liquidity. The upside to this option is if you are into a systematic investment plan and want to purchase a certain coin at regular intervals, then it's the best option for you because even though your target price was hit and the price drops even further, it doesn't matter for you as you wanted to invest in regular intervals.
I will try to explain a little bit in detail with an example.
Suppose if I have $1 worth of USDT and I choose BNB/USDT pair for dual investment and I choose a 5 day period time limit with a target that I want to buy BNB if the price of the BNB is below 920 USDT to which I will get 20% APR.
After 5 days period, if the price of the BNB doesn't hit that 920 USDT, then I would get 1.002739 USDT as the APR is 20%
1%20 = 0.20/365 = 0.0005479*5 = 0.002739
Suppose if the BNB price does hit that 920 and below, then I would get a total of 1.002739 USDT worth of BNB for that target price.
That's why if the price of the BNB goes further down, then that's there you will get loss. But if you want to invest in regular intervals like that 5 day period or 8 or 12 then these tool is for you.
I hope I explained it well to understand or else I didn't quite get the idea of how the dual investment works😁.
These explanation is in no way be treated as financial advice, please do your own research before any investment.
