How to Use Binance Dual Investment

What Is Dual Investment

Binance Dual Investment is a structured financial product that allows you to earn enhanced returns while setting a target price at which you're willing to buy or sell cryptocurrency. Regardless of the market price at expiry, you earn a fixed return, though the settlement currency may differ.

In simple terms, the core logic of Dual Investment is: sell high to earn returns, buy low to get a bargain.

Two Dual Investment Modes

1. "Sell High" Mode

Ideal scenario: You hold cryptocurrency (e.g., BTC) and are willing to sell at a certain higher price.

How it works:

• You deposit BTC and set a target selling price (e.g., $70,000)
• Choose an expiry date and the corresponding APY
• At expiry:
  • If BTC price is below the target price → You get back BTC + BTC returns (not sold)
  • If BTC price is at or above the target price → Your BTC is sold at the target price, and you receive USDT + USDT returns

Example:

Suppose you deposit 1 BTC, target price $70,000, 7-day term, 50% APY.

In the second scenario, although you earned a fixed return, if BTC rose to $72,000, you effectively sold at $70,000 and missed out on the additional $2,000 gain.

2. "Buy Low" Mode

Ideal scenario: You hold stablecoins (e.g., USDT) and want to buy cryptocurrency at a lower price.

How it works:

• You deposit USDT and set a target buying price (e.g., $60,000)
• Choose an expiry date and the corresponding APY
• At expiry:
  • If BTC price is above the target price → You get back USDT + USDT returns (not bought)
  • If BTC price is at or below the target price → Your USDT buys BTC at the target price, and you receive BTC + BTC returns

Example:

Suppose you deposit 60,000 USDT, target price $60,000, 7-day term, 40% APY.

In the second scenario, you bought BTC at $60,000, but the market price was only $58,000, meaning you overpaid by $2,000 (though you also earned return compensation).

Return Calculation Details

Converting APY to Daily Rate

Dual Investment displays an annualized percentage yield (APY). The actual return must be calculated based on the term:

Daily rate = APY ÷ 365 Total return = Invested amount × Daily rate × Number of days

Example:

• Investment: 10,000 USDT
• APY: 36.5%
• Term: 30 days
• Daily rate: 36.5% ÷ 365 = 0.1%/day
• Total return: 10,000 × 0.1% × 30 = 300 USDT

Factors Affecting Returns

How to Participate in Dual Investment

Steps

1. Open the Binance App
2. Go to the "Earn" page
3. Find "Dual Investment"
4. Choose a mode:
   • Holding crypto and want to sell high → Select "Sell High"
   • Holding USDT and want to buy low → Select "Buy Low"
5. Select a trading pair (e.g., BTC/USDT)
6. Browse available target prices and expiry dates
7. Check the corresponding APY
8. Enter your investment amount
9. Confirm the subscription

Tips for Choosing Target Price and Expiry Date

Sell High mode:

• Set the target price at a level you are truly willing to sell
• Don't set an overly low target price just to chase higher returns
• Consider your outlook on the market

Buy Low mode:

• Set the target price at a level you are truly willing to buy
• Don't set an overly high target price just to chase higher returns
• Consider the long-term value of the cryptocurrency

Risks of Dual Investment

Core Risk: Mandatory Execution at Target Price

This is the biggest risk of Dual Investment — if the target price is triggered at expiry, you must execute the trade at the preset price, regardless of how favorable or unfavorable the market price is at that time.

Sell High mode risks:

• BTC surges well above the target price, and you miss out on more profit
• Effectively selling your BTC at a lower price

Buy Low mode risks:

• BTC drops well below the target price, and you buy at a higher price
• You may face unrealized losses if the price continues to decline

Other Risks

• Liquidity risk: You cannot redeem early before the expiry date
• Opportunity cost: Funds are locked during the term and cannot be used for other investments
• Extreme market volatility: Unfavorable settlement during extreme conditions

Who Should Use Dual Investment

Suitable Users

1. Holders with a target sell price: If you already plan to sell BTC at a certain price, Dual Investment lets you earn extra returns while waiting
2. Observers with a target buy price: If you plan to buy the dip at a certain price, earn returns during the waiting period
3. Users seeking enhanced returns: Willing to take some risk for higher yields than standard savings products
4. Investors who understand options logic: Dual Investment is essentially a simplified options strategy

Unsuitable Users

• Users who absolutely don't want to change their positions (since forced buying or selling may occur)
• Conservative investors who cannot tolerate price fluctuations
• Users who blindly chase high returns without understanding the product rules

Practical Tips

1. Start small: Use a small amount for your first try to familiarize yourself with the rules
2. Diversify: Don't put all your funds into a single target price and expiry date
3. Tiered pricing: Invest in batches at different target prices to spread risk
4. Align with market outlook: Lean toward Sell High in bull markets and Buy Low in bear markets
5. Watch for auto-reinvestment: Some Dual Investment products support auto-reinvestment; pay attention to whether it's enabled
6. Understand the essence: Dual Investment is fundamentally an options selling strategy with capped returns but uncapped risk

FAQ

Q: Is Dual Investment guaranteed to be profitable? A: The fixed return portion is guaranteed. However, if the target price triggers a forced buy or sell, the overall result may not be optimal. For example, in Sell High mode, if BTC surges, you earn the return but miss out on more upside.

Q: Can I redeem early before expiry? A: Typically no. Once subscribed, Dual Investment must be held until expiry. Make sure the funds you invest won't be needed before the expiry date.

Q: What determines the settlement price? A: It is usually based on the market price at a fixed time on the expiry day (e.g., spot price at UTC 08:00). Refer to the specific product details for exact terms.

Register a Binance account through the registration link to experience the enhanced return opportunities offered by Dual Investment.