Get the Most From Dual Investment: Customizing Returns to Suit Your Needs

Dual Investment is a non-principal-protected product that allows clients to customize returns to suit their investment needs. Its main risk comes from possible changes in market prices. Users may find it challenging to anticipate potential disparities between the goal price and the market price at maturity when there is substantial market volatility. As a result, determining the settlement currency may also be challenging. Therefore, before signing up, be sure you are aware of both the product’s features and any associated hazards.

Nevertheless, Dual Investment is frequently touted as one of the most secure investments available in the crypto world. Additionally, it seems pretty convincing given how it is presented. You are guaranteed to receive a specific percentage return, but once more, market conditions may cause you to accept payment in one of two different assets or currencies.

How to Anticipate Potential Disparities in Dual Investment Processes

So how does Dual Investment work? Let’s look at an illustration from KuCoin (source link), which reads as follows:

Example 1: Invest BTC for BTC-USDT Dual Investment

Target Price: 20,000

Delivery Date: DECEMBER 15, 2022

APR: 300%

Investment Currency: BTC

Assume that the current time is December 01, the BTC price is 48,000, and the user chooses to invest 1 BTC in Dual Investment due in 14 days.

On December 15:

Scenario 1: If the Settlement Price of BTC on that day is lower than the Target Price of 20,000 USDT, the user will get 0.115% of BTC, that is, 1 * (1+300%* 14 /365) = 1.115 BTC

Scenario 2: If the Settlement Price of BTC is higher than the Target Price of 20,000 USDT, the end user will get 0.115% of USDT, that is, 1 * 20,000 * (1+300%* 14/365) USDT = 22,301 USDT

After the order expires, the user will get 0.115% of the income, the only uncertainty is the currency of the return, which depends on the BTC/USDT settlement price at the time of expiration.

The statement “After the order expires, the user will obtain 0.115% of the revenue, the only uncertainty is the currency of the return” seems to imply that there is no chance to lose money on the investment, even if it accurately describes the results.

In the simplest way possible, the quantitative relationship between the settlement price and the target price might alter the final currency received by the user when the product is resolved. Finally, the user might get paid in a different currency.

Closing Thoughts:

Given the FUD surrounding some exchanges’ dual Investment products, it is true that you could lose more cryptocurrency than you had originally subscribed to. It is true as well that you can collect a positive return.

One of the benefits of dual investment is that they allow you to earn from buying crypto low and selling high, which aligns you with the fundamental investing principle. With the “Sell High” option, you make money as long as the price is within the range of the starting price and the objective price. If you choose the “Buy Low” option, you profit as long as the price exceeds your target.

This is not financial advice in any manner, as always. I wrote this to provide information and gather feedback. Please let me know what you enjoyed and, perhaps more significantly, what you didn’t like. We value your opinions.



Writer | Cultural Activist | Violinist

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