Leçon 3

Dual Investment Strategy and Case Analysis

Dual Investment serves as both a financial product and a powerful trading tool. It enables strategic crypto-to-crypto trading by combining different cryptocurrencies, helping you manage risks while maximizing returns.

When to Use Dual Investment

  1. During market downtrends, when you want to buy the dip at a suitable price while earning additional returns;
  2. When you want to take profits by selling at your desired price while earning extra interest income;
  3. When you want to passively increase your cryptocurrency assets, whether in USDT, BTC, or ETH.

Advantages of Dual Investment as a Trading Tool

  1. No trading fees;
  2. Earnings potential regardless of market trends; high-interest earnings even when bottom-buying or profit-taking conditions aren’t met;
  3. More coin-denominated income when successful in bottom-buying or profit-taking;
  4. Ability to continuously reinvest principal and interest for compound returns.

Risks to Consider with Dual Investment

  1. Once subscribed, funds are locked until maturity with no early redemption;
  2. Risk of missing better buying (or selling) opportunities when prices deviate significantly;
  3. Final transaction price is determined solely by the market price on the settlement date.

Mastering Dual Investment allows you to earn additional returns while waiting for your target price. As an investment tool, Dual Investment offers new opportunities to manage your crypto assets better.

Dual Investment Usage Scenario Comparison

  • Holding USDT, wanting to buy BTC at a lower price

The settlement price on the maturity date will determine which coin we receive. If the settlement price > $25,000, although we missed the dip, we still earn USDT-based returns. If the settlement price ≤ $25,000, we successfully bought the dip and earned additional BTC returns!

  • Holding BTC, wanting to sell BTC for USDT at a higher price

If the settlement price ≥ $30,000, we not only succeed in taking profit but also earn additional USDT-based returns. If the settlement price < $30,000, although we didn’t meet the profit-taking condition, we earn additional BTC return!

Dual Investment Case Analysis

  • Example 1: Investing in BTC to buy a BTC_USDT dual currency product
    User A invested in $1 BTC to buy a Gate.io Dual currency product with a linked price of $20,000. Upon settlement, user A would receive:
    (1) If the settlement price of BTC_USDT < 20,000 USDT, the payment will be settled in BTC, and the payment amount is = 1 BTC (1+100%/36531)=1.0849 BTC
    (2) If the settlement price of BTC_USDT is ≥ 20,000 USDT, the payment will be settled in USDT and the payment amount is = 1 BTC 20,000 (1+100%/365*31) = 21698.63 USDT

  • Example 2: Investing in USDT to buy a BTC_USDT dual product
    User B bought $20,000 USDT on Gate.io Dual currency product at $20,000. Upon settlement, user B would receive:
    (1) If the settlement price of BTC_USDT ≤ $20,000 USDT, the payment will be settled in BTC and the amount of the payment is = $20,000USDT/20,000(1+100%/36531)=1.0849 BTC
    (2) If the settlement price of BTC_USDT > $20,000 USDT, the payment will be settled in USDT, and the payment amount is = 20,000 USDT(1+100%/36531) = $21,698.63 USDT
    In summary, when the product is settled, users can get 108.49% of the collection of payment. However, the numerical relationship between the settlement price and the linked price can change the final currency collected by the user. That is, the user may finally receive the profits in a different currency.

Conclusion

This course examines Dual Investment through its practical applications, comparing Buy Low and Sell High strategies with traditional spot trading to explain complex concepts in simple terms. Through real-world investment examples, we’ve demonstrated the benefits of Dual Investment.

Clause de non-responsabilité
* Les investissements en cryptomonnaies comportent des risques importants. Veuillez faire preuve de prudence. Le cours n'est pas destiné à fournir des conseils en investissement.
* Ce cours a été créé par l'auteur qui a rejoint Gate Learn. Toute opinion partagée par l'auteur ne représente pas Gate Learn.
Catalogue
Leçon 3

Dual Investment Strategy and Case Analysis

Dual Investment serves as both a financial product and a powerful trading tool. It enables strategic crypto-to-crypto trading by combining different cryptocurrencies, helping you manage risks while maximizing returns.

When to Use Dual Investment

  1. During market downtrends, when you want to buy the dip at a suitable price while earning additional returns;
  2. When you want to take profits by selling at your desired price while earning extra interest income;
  3. When you want to passively increase your cryptocurrency assets, whether in USDT, BTC, or ETH.

Advantages of Dual Investment as a Trading Tool

  1. No trading fees;
  2. Earnings potential regardless of market trends; high-interest earnings even when bottom-buying or profit-taking conditions aren’t met;
  3. More coin-denominated income when successful in bottom-buying or profit-taking;
  4. Ability to continuously reinvest principal and interest for compound returns.

Risks to Consider with Dual Investment

  1. Once subscribed, funds are locked until maturity with no early redemption;
  2. Risk of missing better buying (or selling) opportunities when prices deviate significantly;
  3. Final transaction price is determined solely by the market price on the settlement date.

Mastering Dual Investment allows you to earn additional returns while waiting for your target price. As an investment tool, Dual Investment offers new opportunities to manage your crypto assets better.

Dual Investment Usage Scenario Comparison

  • Holding USDT, wanting to buy BTC at a lower price

The settlement price on the maturity date will determine which coin we receive. If the settlement price > $25,000, although we missed the dip, we still earn USDT-based returns. If the settlement price ≤ $25,000, we successfully bought the dip and earned additional BTC returns!

  • Holding BTC, wanting to sell BTC for USDT at a higher price

If the settlement price ≥ $30,000, we not only succeed in taking profit but also earn additional USDT-based returns. If the settlement price < $30,000, although we didn’t meet the profit-taking condition, we earn additional BTC return!

Dual Investment Case Analysis

  • Example 1: Investing in BTC to buy a BTC_USDT dual currency product
    User A invested in $1 BTC to buy a Gate.io Dual currency product with a linked price of $20,000. Upon settlement, user A would receive:
    (1) If the settlement price of BTC_USDT < 20,000 USDT, the payment will be settled in BTC, and the payment amount is = 1 BTC (1+100%/36531)=1.0849 BTC
    (2) If the settlement price of BTC_USDT is ≥ 20,000 USDT, the payment will be settled in USDT and the payment amount is = 1 BTC 20,000 (1+100%/365*31) = 21698.63 USDT

  • Example 2: Investing in USDT to buy a BTC_USDT dual product
    User B bought $20,000 USDT on Gate.io Dual currency product at $20,000. Upon settlement, user B would receive:
    (1) If the settlement price of BTC_USDT ≤ $20,000 USDT, the payment will be settled in BTC and the amount of the payment is = $20,000USDT/20,000(1+100%/36531)=1.0849 BTC
    (2) If the settlement price of BTC_USDT > $20,000 USDT, the payment will be settled in USDT, and the payment amount is = 20,000 USDT(1+100%/36531) = $21,698.63 USDT
    In summary, when the product is settled, users can get 108.49% of the collection of payment. However, the numerical relationship between the settlement price and the linked price can change the final currency collected by the user. That is, the user may finally receive the profits in a different currency.

Conclusion

This course examines Dual Investment through its practical applications, comparing Buy Low and Sell High strategies with traditional spot trading to explain complex concepts in simple terms. Through real-world investment examples, we’ve demonstrated the benefits of Dual Investment.

Clause de non-responsabilité
* Les investissements en cryptomonnaies comportent des risques importants. Veuillez faire preuve de prudence. Le cours n'est pas destiné à fournir des conseils en investissement.
* Ce cours a été créé par l'auteur qui a rejoint Gate Learn. Toute opinion partagée par l'auteur ne représente pas Gate Learn.