What is Dual Investment in Crypto? A Beginner's Guide to Structured Products

Heard people talking about dual investment but have no idea what it means? Don't worry. It's not as complicated as it sounds. Basically, it's a way to easily predict the price of cryptocurrencies and earn additional income. Just lock the coin for a short period of time and you get interest no matter what happens. Let's explain it briefly.

Understanding Structured Products First

Before you start, you need to understand what a structured product is. These are financial tools that combine different things and earn revenue in a specific way.

Banks always offer structured products.They're packaged deals that pay you based on certain conditions. Crypto asset structured products are similar, but use digital currencies instead of stocks.

Dual investment is a type of structured product. Perhaps the most obvious type for beginners.

What Dual Investment Actually Is

With dual investments, you can gain interest by predicting where the price goes. Select the coin, set the target price, and select the lock period. Usually it is days to weeks.

The platform pays interest on this forecast. Two results occur at the end. Either your crypto gets sold at your target price, or you keep it plus interest. You can benefit from either result.

This is what is called dual. There are two possibilities, both of which make a profit.

How a Simple Example Works

Bitcoin is currently worth $40,000. You think the price could rise and set a target of $45,000 in two weeks. Lock up 1 Bitcoin and earn interest

Two weeks later, if Bitcoin reaches $45,000, your Bitcoin will be sold at that price. You made $5,000 from the price increase plus interest.

Alternatively, if your Bitcoin only rises to $43,000, your Bitcoin will not be sold. You will receive interest while holding it. Despite failing to reach the target price, profits were secured.

Why People Use This

Regular holding is boring. Your crypto just sits there. The price may go up, but you don't earn anything while you wait.

Dual investment makes your crypto work for you. Interest is obtained during holding. If you intend to sell at a specific price, why not get additional income while you wait

It is also effective when the price falls. You get interest while you wait to buy at a low price. Stablecoins make money instead of sitting idle.

Many traders use platforms like CoinEx's dual investment to earn during sideways markets when prices barely move.

The Different Types Available

Most platforms offer two main types: Sell at a high price and buy at a low price.

When selling at a high price, we hold virtual currency. Set higher target prices. Sell when the price reaches. If you do not reach, you will gain interest.

If you buy at a low price, you have a stablecoin. Set a lower target price. Buy when the price falls. If you do not fall, you will retain stablecoins and interest.

Some platforms allow period selection. Interest will be low for a short period of time. The longer the interest is, the higher. Because the funds are locked longer.

What Beginners Should Know

Crypto assets are locked. You cannot withdraw until the period is over. Do not lock the funds you need suddenly.

Interest rates always fluctuate. Depends on the market situation and the possibility of achieving the target. Be sure to check the interest rate before contracting.

Sign a contract to buy and sell. When the target price is reached, the deal is automatically reached. Cannot change the contract contents on the way.

Start with a small amount. Let's test the mechanism before spending the real money. Learn the interface and timing.

You can also explore other blockchain options as you get more comfortable.

Common Mistakes to Avoid

Set unrealistic targets and aim for high interest rates. If you predict that Bitcoin will reach $100,000 next week, you will get staggering interest, but if it doesn't happen, did you really want to hold that long?

Lock in excess funds at once. In preparation for opportunities and emergencies, some crypto assets should ensure liquidity. All should not be invested in compound investment.

I do not understand the payment method. Know exactly what happens at the end of the period. Where do cryptocurrencies go how do you get it back

Ignore the reputation of the platform. Use a proven and reliable platform. The new platform presents a bankrupt interest rate, but the risk is also large.

Conclusion

With dual investment, you can earn interest by predicting the price of virtual currency. You can lock up your coins for a short period of time and profit whether your target hits or not. It is simpler than you can imagine. Start with a small amount that can be locked up safely, understand all the conditions before the contract, and use this for crypto you planned holding anyway.