6 Best Ways to Trade With Dual Investment

6 Best Ways to Trade With Dual Investment

6 Min.

Taking advantage of a short-term volatile market is possible with Dual Investment, which offers the opportunity to use different strategies depending on one's market view. This investment option appeals to both less-experienced and experienced investors. With Dual Investment, less-experienced investors can easily take profits, buy dips, and earn interest on their crypto and stablecoin holdings. Meanwhile, experienced investors can enter multiple Dual Investment positions and make the most out of the short-term volatile market.

Basics

With Dual Investment, investors can opt for a more advanced way to earn profits by setting a specific buy or sell price of a cryptocurrency for a future date. This option guarantees a high-interest income, regardless of the market's direction. To start earning through Dual Investment, investors can choose from various strategies that complement their market predictions and trading approach.

Taking Profits

When it comes to investing, taking profits at the right time is crucial. With one of the Dual Investment strategies, investors can benefit from additional returns and realize their crypto gains in the future.

Here's how it works:

Start by selecting the Sell High Dual Investment product. For example, let's say you're looking at an ETH product with a price of $1,600 in USDT.
Set a Target Price of $2,200 and select a Settlement Date one week from now.
If the ETH price reaches or exceeds $2,200 USDT on the Settlement Date, the deposited ETH will be sold for USDT at the Target Price.
This strategy ensures that profits are taken at the predetermined price, eliminating the possibility of missing out on potential gains due to greed. Additionally, investors will earn APR during the investment period.
If the Target Price is not reached on the Settlement Date, the investor will still earn APR on the deposited ETH and receive the ETH back.

Buying the Dip

Dual Investment offers a simple way to take advantage of market downturns while earning an additional interest income. This trading strategy is known as "buying the dip." Here's how to plan for potential dips using Dual Investment:

Let's use BTC product purchasable with USDT as an example. Suppose the current BTC price is $29,000.
Select a Target Price of $26,500 for BTC and set a Settlement Date in one week.
If the Market Price on the Settlement Date is $26,500 or lower, such as $26,000, BTC will be purchased at the Target Price. You will also receive your earned interest.
If the Target Price is not reached on the Settlement Date, you will still earn APR on the deposited USDT before receiving it back.

Earning on Existing Crypto

Dual Investment doesn't always require betting on market movements. Even when the price is stable or doesn't reach the Target Price, it's possible to earn good returns through interest. Here's an example:

Let's consider BTC at the current price of $25,000.
We'll set a Target Price of $26,000 for BTC with a Settlement Date in a week.
If Bitcoin's price remains stable or decreases and doesn't meet the Target Price, we'll earn APR.
Assuming the Settlement Date arrives, and BTC is priced at $24,000, the deposited BTC will be returned along with all the earned interest. This is a simple way to earn a high-interest income on crypto holdings.

Earning on Stablecoins

Earning returns on stablecoins is possible, and this can be a simple way to start earning interest. The strategy is based on hoping the Target Price isn't reached.

Let's consider an example of using USDT to purchase a MATIC product. The current price for MATIC is $1.30.
We'll set a Target Price of $1.20 for MATIC with a Settlement Date in one week.
To earn stablecoin APR, we hope that MATIC's price will remain stable or increase and doesn't reach the Target Price.
At the Settlement Date, MATIC's price is $1.32. Therefore, you can keep your deposited USDT and receive all earned stablecoin interest. This offers an uncomplicated method of earning high interest on your stablecoin holdings.

Making Money Grow in a Quickly Changing Market

Dual Investment provides more advanced plays that allow experienced investors to take advantage of market volatility. This strategy involves a combination of Buy Low and Sell High products, which requires careful consideration of market trends.

Let's consider the use of BNB, which is currently trading at $280, as an example. We will set a target price of $315 and a Settlement Date one week from now.
If the market is volatile, two things may happen. If the Target Price isn’t reached, you’ll keep your BNB and earned interest. You can create a new Sell High order to earn more interest or sell at a higher price.
If the Target Price is reached, you’ll sell your BNB for $315 per unit and gain interest. You can then place a Buy Low order to purchase crypto at a lower price.
Every time your Target Price is met, you can take advantage of Dual Investment products in the opposite direction. If the Target Price isn't met, you can continue in the same direction until it is reached. This strategy enables you to buy low and sell high while compounding your returns.

However, investors should note that investing always carries inherent risks, and this strategy is best suited for experienced investors who are comfortable with market volatility.

Positions on Both Sides

Let's take a look at the final strategy, which is somewhat similar to the previous one, but instead of one, two positions are opened simultaneously. This requires holding two types of tokens, one in crypto, such as ETH, and another in stablecoin, like USDT. Suppose that the current price of ETH is $1390.

Invest ETH in a Sell High ETH Dual Investment product with a Target Price of $1420 and a Settlement Date in one week.
Invest USDT in a Buy Low ETH Dual Investment product with a Target Price of $1360 and a Settlement Date in one week.
There are three possible outcomes due to market volatility:
- If the Target Price of both positions isn't reached as the price remains between $1360 and $1420, you'll keep your original ETH and USDT deposits, as well as earned interest in both currencies.
- If the price of ETH reaches $1420 or above, the Sell High position's Target Price is reached, and your ETH and accumulated interest will be sold for $1420 per unit. Additionally, you'll keep your Buy Low USDT deposit plus earned interest. Therefore, you can take a profit from selling ETH while also accumulating interest in USDT.
- If the price of ETH reaches $1360 or below, the Buy Low position's Target Price is reached. You'll purchase ETH at your desired price and receive your interest, and you'll also keep your Sell High ETH deposit plus earned interest. Therefore, you can buy ETH at a lower price while also accumulating interest in ETH.

Conclusion

Exploring Dual Investment is a great way to diversify your investment portfolio while also utilizing the product to plan your trading strategies. The product offers the bonus of APR, making it an attractive option. While earning interest and buying or selling are great benefits of Dual Investment, the product has much more to offer. Consider exploring the full potential of Dual Investment to take your investments to the next level.

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