Résumé

  • Double Investing allows you to earn interest regardless of market direction.

  • Use Double Invest - Buy Low to buy crypto for less than the current price by earning interest.

  • Use Double Investment – ​​Sell High to sell crypto for more than the current price by earning interest.

  • If the target price is reached, your deposit will be used to buy/sell cryptocurrencies. If it is not reached, your deposit and interest income will be returned to you.

  • You can compound your gains and roll over your positions using the Auto-Compound feature.


Introduction

We all know that to generate added value, you have to Buy low and Sell high. Investing in cryptocurrency is no different. Binance Dual Investing offers a great way to capture Buy Low and Sell High opportunities while earning you additional returns. Let's see how it works and how you can get started.


Key Benefits of Double Investing

Binance Double Investing offers users four key benefits:

  • Buy Low or Sell High: Dual Investing allows you to buy crypto at a lower price or sell crypto at a higher price.

  • High Yield: You will get high passive income regardless of market direction.

  • Extensive Selection: You can choose from a wide variety of assets and set the target date and price at your convenience.

  • No trading fees: No trading fees when the target is reached and the buy or sell order is executed.


How does Double Investing work?

Binance Double Investing allows users to buy crypto at a lower price or sell crypto at a higher price in the future. It also allows users to earn a high interest return during the subscription period, regardless of the direction of the market. For many, Double Investing is an alternative to spot trading with Limit orders on the Binance trading platform.

There are two types of dual investment products: Buy Low and Sell High.

Buy Low products offer the possibility of buying the cryptocurrencies of your choice at a price lower than the current price. Sell High products offer the possibility of selling the cryptocurrencies of your choice at a price higher than the current price.

Double investment - Buy low

There are two reasons why you may want to use a Double Investment - Buy Low product:

1. Use your existing stablecoin holdings to purchase cryptocurrencies at the desired price, on a desired date, while generating additional income.

2. Accumulate more stablecoins through interest.

Double investment - Sell high

Similarly, the Double Investment – ​​Sell High product also provides two use cases:

1. Sell your existing cryptocurrency positions at the desired price on the desired date while generating additional income.

2. Accumulate more crypto through interest.

Trading Strategies

Sell ​​High and Buy Low products can easily be used in different trading strategies. Be sure to check out our LINK guide for recommendations on the best dual investing strategies. These six techniques can help you maximize returns and meet your investment needs.


Key Terminologies for Double Investment Products

Before we get into how these products work, it's worth clarifying some terms you need to know:

1. Subscription amount: the amount deposited when subscribing to a dual investment product.

2. Target price: a fixed price at which you want to buy or sell a cryptocurrency.

3. Settlement date: defined date on which you wish to buy or sell cryptocurrencies. You will also receive the interest from your subscription on this date. It is at 08:00 (UTC) that the target price is compared to the market price to decide whether it has been reached or not.

4. Settlement Price: an average of market prices in the 30 minutes prior to 08:00 (UTC) on the settlement date. The settlement price and target price determine whether you manage to Buy Low or Sell High.

5. Annualized Percentage Yield (APY): The interest you would earn if you locked your cryptocurrencies in a Double Investment product for one year, this includes compound interest. For example, if your annual return is 36.5%, then an estimate of your daily effective return is 36.5% / 365 days = 0.1%.

6. Subscription period: the number of days from the subscription day until the Settlement Date.


How to subscribe to a Binance Double Investment product?

Using Binance Double Invest is quite easy if you are familiar with how the product works. Follow the steps below to subscribe to Double Invest.

1. Go to the Double Investment page.


2. Select the crypto you want to buy or sell.


3. Complete the Double Investment questionnaire if this is your first use of the product.


4. Decide whether you want to Buy Low or Sell High.


5. Select a target price and settlement date.


6. Enter the amount to subscribe, accept our conditions and click [Subscribe].


7. You're ready to go! Your funds will be settled within 6 hours of the settlement date at 08:00 UTC. You can view your previous orders on the Double Investment History page.

Beginner Mode

If you are not familiar with double investment, you can activate the “Beginner Mode” option, this is accessible using a toggle button. Beginner Mode provides a step-by-step guide to help you through the underwriting process.

Once you are familiar with Double Investing, you can use the same toggle button to turn off Beginner Mode and take advantage of our advanced features.


How is my ROI calculated?

There are two components that affect the return on dual investment products: interest and subscription amount. Your return will vary depending on whether or not the target price was achieved.

First, let's look at how interest is calculated. Interest income is calculated using the formula below:

Interest Income = Subscription Amount x APY % x Subscription Period (in days) / 365

For a Double Investment - Buy Low, there are two possible scenarios.

1) When the target price is reached on the settlement date (i.e. the price is at or below the target price):

a) Your subscription amount and interest income will be used to purchase cryptocurrencies at the target price.

b) Formula: (Subscription amount + interest income) / Target price.

2) When the target price has NOT been reached on the settlement date:

a) You receive your subscription amount and your interest income without any conversion.

b) Formula: Subscription amount + interest income


For a Double Investment - Sell High, there are two possible scenarios.

1) When the target price is reached on the settlement date (i.e. the price is greater than or equal to the target price):

a) Your subscription amount and interest income will be used to sell cryptocurrencies at the target price.

b) Formula: (Subscription amount + interest income) x Target price.

2) When the target price has NOT been reached on the settlement date:

a) You receive your subscription amount and your interest income without any conversion.

b) Formula: Subscription amount + interest income


On each settlement date, Binance uses 08:00 UTC as the check time to decide whether the settlement price has reached the target price or not. The settlement price is the average market price over the 30 minutes before 08:00 UTC on the settlement date. Your funds will be returned to you within 6 hours of the settlement date at 08:00 UTC.


How to Automatically Compound Your Double Investing Returns

A common investment strategy is to compound your profits to increase your returns. Double Investing can automate this process for you with its Auto-Compound feature.

On the settlement date of any open Double Investment position, you can automatically resubscribe to a new position with a settlement date set to the next available date.

Settlement dates for BTC and ETH are Tuesdays and Fridays. The settlement date for all other digital assets is every Friday. Up to 30 minutes before the settlement date, you can choose to activate/deactivate the Auto-compound function.

Two Auto-Compound strategies are available:

1. Basic strategy

  • If the target price is reached, Auto-Compound will stop. The system will close the position and distribute the funds.

  • If the target price is not reached, the Auto-compound will remain active. The system will automatically subscribe to a new position with settlement taking place on the next available settlement date, until the target price is reached.

For example, if the current target price of your Sell High product is not reached, on the settlement date your funds will automatically be consolidated into a new Sell High position. If the target price is reached, the double investment will end the Auto-Compound feature.

2. Advanced strategy

  • If the target price is reached, the system will automatically subscribe to a new position with settlement taking place on the next available settlement date in the opposite direction.

  • If the target price is not reached, the system will automatically subscribe to a new position with settlement taking place on the next available settlement date in the same direction. For example, you subscribed to a Sell High product and the target price is not reached. Auto-compound will open a new Sell High position for you.

In our example, if the current Sell High target price is reached, Double Investment will open a new Buy Low position with settlement on the next available settlement date. If the target price is not reached, on the settlement date your funds will automatically compound into a new position of Sell High.



To conclude

Binance Double Investing allows you to earn passive income regardless of the market trend. If you are an investor or trader with a Binance account who wants to do more than just stake or lend coins that you HODL, dual investing can be a good way to diversify.

You can monetize your view of the market and attempt to hedge against the market while generating additional interest and with the security of a Binance product. As always, be sure to do your own research on the subject before investing your funds.