Binance Dual Investment is a structured financial product that lets you earn interest while simultaneously setting a target price to buy or sell cryptocurrency. It may sound complicated, but once you understand how it works, you'll find it's actually quite practical. Sign up on Binance to find Dual Investment products in the Earn section.
How Dual Investment Works
The Basic Concept
Think of Dual Investment as depositing your funds for a set period. When the term ends, depending on how the market price has moved, you'll either get your principal back plus interest (in the original currency), or your funds will be used to buy/sell cryptocurrency at your preset target price (converted to the other currency, plus interest).
Either way, you earn interest.
Two Types of Products
Buy Low (Bullish)
You deposit USDT and set a target price. At maturity:
- If BTC's price is above the target: You get back your USDT plus interest
- If BTC's price is at or below the target: You buy BTC at the target price and earn interest
This is ideal for users who want to buy BTC at a lower price.
Sell High (Bearish)
You deposit BTC and set a target price. At maturity:
- If BTC's price is below the target: You get back your BTC plus interest
- If BTC's price is at or above the target: You sell BTC at the target price for USDT and earn interest
This is ideal for users who want to sell BTC at a higher price.
A Concrete Example
Buy Low Example
Suppose BTC is currently trading at 60,000 USDT and you select a Buy Low Dual Investment product:
- Deposit amount: 1,000 USDT
- Target price: 58,000 USDT
- Duration: 7 days
- Annualized yield: 30%
On the settlement date, 7 days later:
Scenario 1: BTC price is 61,000 (above the target of 58,000)
- You receive 1,000 USDT + approximately 5.75 USDT in interest (30% annualized over 7 days)
- You didn't buy any BTC, but you earned interest
Scenario 2: BTC price is 57,000 (below the target of 58,000)
- You buy BTC at the target price of 58,000
- You receive approximately 0.01724 BTC + interest
- Although your purchase price (58,000) is above the current market price (57,000), you're compensated with interest
Download the Binance App to browse currently available Dual Investment products in the Earn section.
How to Use Dual Investment
Steps
Step 1: Open the Binance App > Earn > Dual Investment
Step 2: Choose the product type you want (Buy Low or Sell High)
Step 3: Select a target price and duration
- The farther the target price is from the current price, the lower the yield tends to be (since it's less likely to be triggered)
- Longer durations generally offer higher yields
Step 4: Enter the amount you want to invest
Step 5: Review the product details, including:
- Target price
- Settlement date
- Expected yield
- Possible settlement outcomes
Step 6: Confirm your purchase
Important Notes
- Dual Investment products cannot be redeemed early before maturity
- The actual settlement is based on the price at expiration
- Interest is earned regardless of the outcome
Pros and Cons
Advantages
- Earn interest regardless of market direction: No matter which currency you're settled in, you receive interest
- Set your ideal buy/sell price: It's essentially a limit order that pays you interest while you wait
- Higher yields: Annualized returns are typically much higher than flexible savings products
- Simple to use: Just choose your parameters and confirm with one tap
Disadvantages
- No early redemption: Your funds are locked until maturity
- Potentially unfavorable settlement price: If the market moves dramatically, the settlement price may be worse than what you'd get trading directly on the market
- Risk of principal loss: If you buy BTC and its price continues to drop sharply, your BTC holdings lose value
- Requires understanding: Investing without understanding the mechanics could lead to unexpected results
Who Is Dual Investment For?
Good Fit
- Users with idle USDT: Rather than letting it sit, earn interest through Dual Investment
- Users planning to buy a token at a lower price: Set your target price and earn interest while waiting for the opportunity
- Users planning to sell a token at a higher price: Set your sell price and earn interest while waiting for execution
- Users with some market insight: Those who can set reasonable target prices
Not a Good Fit
- Users who need access to their funds at any time: Funds cannot be withdrawn before maturity
- Complete beginners with no market awareness: May struggle to choose appropriate target prices
- Users with very low risk tolerance: Settlement outcomes may not match expectations
Tips for Choosing Products
How to Select a Target Price
- Conservative approach: Choose a target price far from the current price — lower probability of triggering, more likely to get your principal back plus interest
- Aggressive approach: Choose a target price close to the current price — higher probability of triggering, and higher yields
- Technical analysis: Use support and resistance levels to guide your target price selection
How to Choose a Duration
- Short-term (1-3 days): Lower yields but greater flexibility
- Medium-term (around 7 days): A balance between yield and flexibility
- Long-term (14+ days): Higher yields but funds are locked for longer
Sign up on Binance to explore Dual Investment products.
FAQ
Is Dual Investment principal-protected?
Interest is guaranteed, but your principal may be returned in a different currency. If that currency subsequently depreciates, you could experience a loss in fiat terms.
Is Dual Investment the same as options trading?
The underlying logic is similar to options, but the experience is greatly simplified. You don't need to understand complex options terminology to use Dual Investment.
Is the yield rate fixed?
The yield shown at the time of purchase is locked in and won't change with market conditions. However, different products purchased at different times may offer different rates.
Can I buy multiple Dual Investment products at once?
Yes. You can participate in multiple products with different target prices and durations simultaneously. Download the Binance App to manage all your Dual Investment orders.
Safety Tips
- Funds invested in Dual Investment cannot be withdrawn before maturity, so make sure you won't need the money during the lock-up period
- Fully understand both possible settlement outcomes before committing funds
- Don't put all your assets into Dual Investment
- Start with a small amount on your first try to learn the process
- Use market analysis to choose reasonable target prices and durations