While crypto trading can be a bit too “volatile” for some, there are modern financial tools that can help neutralize it and make a profit. In this article, we decided to focus on dual investments that allow users to buy low and sell high while earning a high-interest yield. As advertised, no matter where the market goes, you will still get your profits. Is it really this simple and risk-free? Keep reading to find out!
What are crypto dual investments?
Crypto dual investment is a structured financial product that allows the participants to buy an asset low or sell it high on a specific date while earning a high-interest yield. Here are the main benefits to consider:
- Booking profits at the desired rate: traders use this tool to sell crypto high during market rallies or buy it low during the downtrend.
- Passive income during any market: the thing that attracts participants into crypto dual investments is the ability to earn passive income during any market trends
- High APR: dual investments offer a higher interest rate compared to traditional financial tools such as bank deposits. On Binance, for instance, the APR goes as high as 320% for some coins
- Zero fees: for making a transaction via the exchange’s Trades section, users have to pay fees. Dual investments, on the other hand, are usually commission-free.
How do dual investments work?
Typically, there are two main features to consider: Buy Low or Sell High.
Buying Low allows obtaining a cryptocurrency, such as BTC or ETH, at a lower price in the future. For instance, if you want to buy BTC at $19,000, choose one of the available investment products via the Buy Low feature. All the necessary info will be displayed automatically: APR, settlement date, target price, etc. Once you have committed, there are two possible scenarios:
Target price reached
Your forecast was correct and BTC dropped to $19,000. Since the target price was reached on the settlement day, the system will purchase the desired amount of Bitcoin. Moreover, you will receive interest for participating in dual investments (APR).
Target price not reached
In case BTC didn’t reach $19,000 on the settlement date, the system will not place any buy orders. Additionally, you will also earn interest for participating in the product.
Selling High works exactly the opposite — you choose a price and the date at which you want to sell your coins in the future. If the scenario plays out, you will get profits from the sell order plus interest. If not, you will hold onto your crypto but still earn passive income.
Are there any risks?
Yes, as there are to all investment tools currently existing. One of the main things to consider is irreversibility. You will not be able to cancel the subscription if, for instance, the chosen asset is behaving differently than expected. The target price and settlement date cannot be changed either.
To sum up, dual investment is an efficient tool for those who want to earn passive income in crypto regardless of the market situation. However, It does require a basic understanding of the market trends and sentiment to pick the right asset to buy low or sell high. Thus, put your toe in the water before diving deep, and don’t forget about risk management.