Dual Investment is a structured financial product launched by Binance that offers higher yields than regular savings, but you need to understand how it works. After registering on Binance, you can find Dual Investment on the Earn page.
How Dual Investment Works
Dual Investment is essentially selling an option. You deposit a cryptocurrency, set a target price and settlement date. At settlement, depending on the relationship between the market price and target price, you receive your principal plus yield, but the settlement currency may differ.
Two Types
- Buy Low: Deposit USDT and set a target price below the current price. If the price is above the target at settlement, you get back USDT plus yield; if below, you buy the corresponding cryptocurrency at the target price plus yield
- Sell High: Deposit a cryptocurrency (e.g., BTC) and set a target price above the current price. If the price is below the target at settlement, you get back your original crypto plus yield; if above, your crypto is sold at the target price and converted to USDT plus yield
Who Is It For
- People who want to buy a certain coin at a lower price and don't mind waiting
- People who want to sell their holdings at a high price while earning yield during the waiting period
- Investors who understand basic options concepts and can tolerate currency conversion risk
Risk Warning
The risk of Dual Investment lies in this: during a major market crash, the Buy Low type forces you to buy at a target price higher than the market; during a major rally, the Sell High type forces you to sell below market price, missing out on further gains. While yields are high, the settlement outcome may not match your expectations.
Recommendations
Beginners should start with small amounts and choose shorter settlement periods. Try one or two trades to get familiar with the rules before increasing your investment. Download the Binance APP to find Dual Investment in the Earn section.