A Quick Guide to Binance Dual Investment
If you’ve been involved in the world of crypto for a while, you’ll know that cryptoassets can be extremely volatile. The total value of your portfolio can experience large swings, leaving you holding on to dear life in the front seat of a wild roller coaster. Binance Dual Investment provides a way to earn passive income no matter which direction the market goes.
What can you do to protect yourself from volatility but still generate yield? Binance Savings offers many convenient ways to earn passive income, but they may expose you to price risk. The option to use more volatile cryptocurrencies to generate income is enticing, but they are directly related to market conditions.
You can also use stablecoins, such as BUSD or USDT, but Binance Dual Investment takes this concept to the next level. You have the opportunity to enjoy yield no matter which direction the market goes. Let’s see how it works.
What is Binance Dual Investment?
Binance Dual Investment lets you deposit a cryptocurrency and earn yield based on two assets. You commit your crypto holdings, lock in a yield, but earn more if the value of your committed holdings increases. It’s basically a way for you to have more control over your risk.
The return you get is dependent on the outcome of your bet at the expiry date. If the value of your holdings increases so that your earnings exceed the savings rate, you’ll get a higher return. If the value of your holdings doesn’t exceed the savings rate, you’ll still get the yield from your savings.
Before we get into how these products work, let’s clear up some of the terms you’ll need to know.
Subscription cut-off date – the date until you can subscribe funds to this Dual Investment product.
Expiry date – This is when you can redeem your crypto with the interest that you earned.
Strike price – The price threshold that determines which settlement currency you’ll get paid in.
Settlement price – The price of your crypto at the expiry date. It’s calculated using an index of some of the most liquid spot BTC-USD market pairs.
Rate of return – The fixed interest you’ll earn when the product settles.
Annualized rate of return – The interest you’d earn if you’d lock your crypto in a Dual Investment product for a year. For example, if your annualized rate of return is 365%, then an estimation of your daily return is 1%.
Binance Dual Investment allows you to earn passive income no matter which direction the market goes. Do you still have questions about Binance Dual Investment? Check out our Q&A platform, Ask Academy, where the Binance community will answer your questions.