What is Binance bicurrency investment

Available cryptocurrencies

When Dual Investments launched in October 2020, you could only open trades in bitcoin and ether. By January 2024, the list of coins was expanded. More details are in the table.

Bicurrency investment products

The instrument allows you to get a profit higher than in the deposit, but carries additional risks – the lack of protection of the initial investment amount and high volatility. If the option is used correctly, you can quickly increase your capital. The minimum transaction amount is $0.5. The general order is as follows:

1. To earn, you need to analyze the chart of the cryptocurrency pair and make a forecast. The first asset is one of the available coins, the second is USDT and FDUSD stablecoins. You can also subscribe to BNBBTC, BNBETH, ETHBTC.
2. To invest, you need to select the asset, trading direction, settlement date and strike. The remuneration is calculated according to the following formula: investment amount × annual interest rate × term in days / 365.
3. If the forecast is not fulfilled, the user will receive the deposit and profit in the original currency. If the strike is reached, the payout will be recalculated at the target rate.

Buy cheap

Investors use this option during a sideways market. As long as the purchase price is not reached, the client earns a high profit in stablecoins.

If the quotes fall to the specified strike or lower on the settlement date, the user will receive coins at a good rate and a percentage profit. The formula is as follows: (investment amount + profit in USDT) / target price.

Sell high

Holders can not just hold the asset, but place it in bicurrency investments on Binance. The scheme is as follows:

1. The client deposits coins, specifies the sell strike and settlement date.
2. If the market quotes are higher than the desired level during the expiration, the invested coins along with the interest profit are sold. The calculation formula is as follows: (amount of investment + profit in cryptocurrency) × the specified strike.
3. If the market is below the target price, the transaction is not executed. The user gets his coins and earnings back. Thus, the client does not just wait for the fulfillment of the prediction, but increases the amount of cryptocurrency.

How to start investing on Binance

Beforehand, you need to make a forecast for a pair of coins and buy the desired amount of cryptocurrency on the spot market. To place assets in Dual Investments will require:

1. Select the Earn section.
2. Go to the “High Yield” tab.
3. Open the Dual Investments section.
4. Select a coin. You can click on the “Match My Assets” button. Cryptocurrencies that the user does not have will be removed from the table.
5. Go to the product tab – “Sell Expensive” or “Buy Cheap”.
6. Select a paired asset.
7. Specify the settlement date and click on one of the available offers.
8. Enter the subscription amount. At the bottom of the page you will see a detailed calculation of the profit under different scenarios. Click on the “Next” key.

9. If necessary, you can activate the “Auto Accumulate” mode and select a plan.
10. Confirm the transaction.

Auto accumulation in bi-currency investments

You can choose any investment period – from 1 day to several months. But it is more profitable to make a transaction every week.

In this case, funds are blocked for a short period of time, after which the investor can change the forecast.

However, you will have to constantly monitor the end of the subscription and register it for a new term. If you activate the “Auto Accumulation” function, you can set up program renewal:

1. Go to Earn.
2. Select a subscription.
3. The option construction data will appear on the screen – investment amount, settlement date and profit in different scenarios. You will need to move the “Auto-Accumulate” slider to the ON position and select a plan.

Available options

When executing the product, the user sets the target value of buying or selling an asset. Auto Accumulation works like this:

• Basic plan. If a buy or sell order is executed, the subscription is not renewed. If there was no transaction, a new product is issued on the settlement date at a price 10% lower/higher than the current one.
• Extended Plan. If the order is executed, the opposite position will be automatically opened. If the cryptocurrency is sold, a “Buy Cheap” subscription will be issued for the same term, but at a rate 10% lower than the current one. If the price is not reached, the system will automatically extend the expiration date.

The auto-accumulation mode can be activated when creating a subscription or later at any time, but no later than half an hour before expiration. In some scenarios, the algorithm cannot find the price that is specified in the plan. For example, you need to buy BTC for $39.6k (10% lower than the current price), but the minimum available strike is $42k. In this case, a suitable offer will be selected.

Advantages and Risks of Dual Currency Investments

The Dual Investments tool can be used as an alternative to limit orders or to get additional profit when holding. In most cases, the rates in bicurrency investments on Binance are higher than in deposits and staking. But this method has disadvantages:

• Users block assets for the subscription period. It is impossible to return the money early.
• The order will be executed only if the market price is higher/lower than the set price at the time of calculation. If the quotes rise above the strike and fall by expiration, the transaction will not take place. The investor can get a loss.
• The cryptocurrency market is very volatile. The price can go in the right direction, but too far. The level that seemed attractive for a transaction will become unprofitable. A more profitable transaction can be made at the market price. But the order at Dual Investments will be executed at the specified strike.

Comparison with holding

Crypto coins can be held in a wallet or placed in deposits and high yield products at interest. The financial results are different in these scenarios:

• The target price is not reached. In Dual Investments, the investor keeps the initial investment and earns a high profit. In Holdings, there is no profit; in Deposits it is less.
• The target level is reached. Profit in Dual Investments is greater than with holding due to high percentage profile and no trading commissions.
• The target level was reached, but by expiry the price went backwards. In high-yield products, the user loses the opportunity to sell an asset expensively or buy cheaply, the loss is partially offset by the interest profit realized.
• By the time of expiration, the market rate has deviated significantly from the set price. In Dual Investments, the user will receive a profit, but it would be larger with a holding.

Comparison with the spot market

Dual Currency Investments on Binance is a more favorable alternative for traders who trade with limit orders. In both cases, the transaction will be executed when the specified price is reached, but in the first case, you can get additional profit and not pay the trading fee.

There is a disadvantage: at high volatility the price can spike to the specified level and go back. The limit order will be executed in this case, but the deal in Dual Investments will not. The trader will lose the opportunity to buy/sell the coin at an attractive price.

Frequent questions from users