The traders wager on the market that escalates or decelerates, commit their crypto possessions, and enclose a yield.
Investors can earn excellent yield by doing the same, despite where the market goes.
Thy crypto investors earn money according to the market behaviour.
Here, let’s take a look at some common terms –
- Delivery date: it’s the day when investors can cash in their crypto interests and deposit.
- Strike price: The fixed price decides what currency the settlement is reimbursed.
- Settlement price: the typical spot price half an hour before 08:00 on the date of delivery.
- APY (Annual percentage yield): it’s nothing but the interest gained with your locked cryptocurrency in a dual investment product for one year.
- Underlying asset: it’s the asset in a Binance Dual Investment product. Thus, if you deposit BUSD and wager for BTC to descend, BTC will be called “underlying asset”.
How does BTC Dual Investment work?
The BTC Dual Investment allows Bitcoin cash holders to dodge their bitcoin holdings. Up-and-Exercised dual investment products offer you an opportunity to sell the underlying asset with a higher interest rate at delivery time.
With an Up-and-Exercised dual investment, if the cost of settlement is higher than the strike rate, the investment is settled in BUSD, and it’s considered exercise.
However, if the settlement cost is less than the strike cost, the dual investment is settled in BTC. When it comes to Down-and-Exercised products, they work quite the opposite.
When the settlement cost is lower than the strike rate, the product is settled in BTC and considered exercised.
If the cost of settlement is increased than the strike rate, that will be settled in BUSD.
After exercising the Up-and-Exercised BTC product, your asset is translated into BUSD at strike rate according to the speed of conversion.
So, the question is, how is the rate of interest is calculated for dual investment.
The APYs vary depending on the price volatility, remaining days, and the strike price. But, your APY will impound when you have obtained the Dual Investment product.
What are the risks of dual investment?
Your invested asset can be changed according to the product execution case without another crypto upon delivery (BUSD, USDT, or BTC). You cannot cancel the Subscriptions, and there is a risk because of the funds blocking during an expected time of high volatility in the cryptocurrency marketplace.
Also, remember that the reference cost describe in the product description may be adjust again as per the rates on the spot marketplace, equal to one day post the begging of the offer.
Learn about six new altcoins added to Dual Investment
SOL is the abbreviation of Solana. It is a web-scale blockchain that offers decentralized, scalable, and secure marketplaces and apps. At present, it supports 50,000 Transactions per second (TPS) and 400ms Block Times.
The overarching objective of the application is to show that there is a set of algorithms with the mixture for creating a blockchain.
That would enable transaction throughout for scaling proportionally with different network bandwidths fulfilling all the properties of a blockchain, i.e., decentralization, security, and scalability.
Moreover, the system is capable of supporting a higher bound of 710,000 TPS on a regular gigabit network plus 28.4 million TPS on a standard 40-gigabit network.
It is a local cryptocurrency for Dual Investment launch by Polygon network and tends to assist drive development over the web. It can also used to stake and pay for transaction charges.
You can easily earn MATIC tokens by giving computational services and resources to the Polygon system. You can easily verify transactions or execute their smart agreements on the network.
According to the market capital, Cardano or ADA is one of the largest cryptocurrencies. It made to be a revolutionary altcoin of the Ethereum. It made with a blockchain that is a scalable, sustainable, and flexible platform for operating smart contracts, which will enable the growth of a large variety of decentralized finance applications, games, new crypto tokens and more.
BNB or Binance Coin is a cryptocurrency for Dual Investment that users can use for trading and paying the prices on the Binance crypto exchange. The Binance Exchange is consider the biggest cryptocurrency exchange.
It is the local cryptocurrency present by Polkadot. It’s a blockchain interoperability protocol establish in 2016. DOT is a sharded blockchain, and it links various chains together in just one network. It enabling them for processing transactions in parallel and share data among chains without compromising security.
BCH or Bitcoin Cash is a cryptocurrency Dual Investment that possesses a lot of similar features to BTC. However, it also incorporates various features and changes that make it stand out. It is also a decentralized peer-to-peer digital cash system. It doesn’t depend on any central body like a financial institution or government. As such, it shows a fundamental redesign of the unique nature of money.
With Dual Investment, users can earn attractive passive income despite where the market goes. This product is perfect for long-term holders and investors. It wish to evade their position and make money while doing the same.
Because the cryptocurrency market is famous for its highest volatility. Having the means to earn some stable and secure returns is an excellent idea.
Just keep one thing in mind that like with every type of investment product. There is no profit without some risk.
Also, remember that you cannot cancel the subscriptions; hence there is a risk that your money will be lock in case of high volatility. Thus, you should always do some asset risk and research despite anything.