Usually, beginner traders who have just entered the digital currency market prefer different investment methods. Because in these methods, risks and losses are less than trading methods. Fund double placement (Dual Investment) is a type of investment in the digital currency market that allows you to receive your profit in the form of two assets.
In other words, if your transaction is executed on the settlement date, you can receive the transaction profit in the form of deposit currency or alternative currency. In the following, we will explain more about this type of investment.
Dual investment
Simply put, double depositing is a type of investment where traders can receive interest from their asset in the form of two other assets. To start, you must first select the exchange you want. Among the valid digital currency exchanges, exchanges such as Binance And Cocoin, offer the possibility of double investment. Now you need to lock or stake your digital asset in one of these exchanges. After a certain period of time in which your asset earns profit, its profit can be withdrawn for you in two ways.
This type of deposit is a non-core financial product with floating returns. This floating return is set based on predetermined criteria, i.e. target price. The amount of investors’ income depends on the performance of their assets at the specified time and based on the target price. Like all other methods of buying and selling digital currency, double investment also has risks and is considered risky. The highest level of risk is related to market fluctuations that affect your property.
Dual investment performance
For a more accurate understanding, it is better to get to know a little about its performance that makes investors profitable. In this type of investment, investors can buy an asset at a low price or sell that asset at a higher price in the future. Remember, in Dual InvestmentIf your transaction is not executed, you will receive the return on the asset in the form of a deposit currency, and if the transaction is executed, you will receive the return on the asset in the form of an alternative currency. Let us explain to you separately the two important approaches in double depositing, selling high and buying low.
The first approach: buy low
The meaning of executing the transaction in double investment is the decrease of the settlement price target price Is. For this economic model, first you need to specify the duration of the deposit and the target price on the settlement day. So, when the settlement day arrives and the price of your asset is lower than the target price of the trade, the trade is executed. But if the price of the asset is higher than the target price, the transaction will not be executed.
Now in this approach, i.e. buying at a low price, if the transaction is executed; You can in settlement date, buy your alternative digital currency. To receive an alternative digital currency, you have to deposit some stablecoin such as USDT to the exchange account and set the settlement time and target price to buy the alternative currency such as Bitcoin Choose. Now, on the settlement day, with the initial asset, i.e. stablecoin and its profit, some alternative currency, i.e. Bitcoin, is purchased.
The second approach: high sales
The high selling approach is different from the low buying approach. In this approach, the price of your asset should reach or exceed the target price. In this case, you can sell your digital asset at a high price. To do this, first a digital asset is saved It is a stablecoinChoose and deposit it. Now specify the target price, which should be a high price to sell, and the settlement time of the transaction.
On the settlement day, if the asset price reaches the target price; The transaction is done. This means that your digital asset will be sold along with its profit, and finally, the reward of this transaction will be credited to your account in the form of stablecoin. As we mentioned above, if the asset price does not reach the target price and the transaction is not completed, your asset will not be damaged. You can withdraw it in the same currency as the deposit plus interest Sticking get it
Advantages of dual investment
Until this part of the article, to the definition Dual investment And we paid its performance. Now we have to check the advantages and disadvantages of this type of investment so that you can go towards it with full knowledge. The advantages of double deposit are:
- Buy high, sell low: You can buy at a low price and sell your property at a high price.
- Passive Yields: In binary investing, regardless of the market trend, you get profit or reward from staking your assets. This earning is fixed and passive.
- Transaction fee: If your transaction goes through, you will not be charged any transaction fees.
- Multiple objectives: In this type of investment, you can consider several goals for your property and its profit in order to earn money.
Dual investment risks
As dual investment like other investments such as collective investment has good benefits for earning money, it also has risks. The risks of double deposit are almost equivalent to the risks of trading in the spot market. But a better understanding of these risks will help you experience a better situation.
- Locked property: Once deposited, your assets will be locked and inaccessible until cleared. This type of investment is not flexible.
- Settlement date: Your earning and profit in dual investment depends on your settlement date. What is the market trend on the settlement date is important.
- damage: In this type of investment, if the price of your asset is far from the target price, you will have to buy at a higher price or sell at a lower price, which is a loss in the investment.
Double investment method
One of the exchanges that allows you to double deposit is Kocoin exchange. This exchange is very popular among Iranian traders due to the lack of restrictions for Iranian users. In the following, we will teach step by step dual investment in Kocoin exchange and Binance exchange.
Double investment in Kocoin exchange
Follow the steps below to start the double deposit process on Kocoin exchange.
1. Log in to the Kocoin exchange website and open your account.
2. If you don’t have an account in Kocoin exchange; Create a new account.
3. From the menu at the top of the page, select the Earn option and from its sub-category, click on the KuCoin Earn option.
4. According to the image below, from the opened page, find the Dual Investment option and click on it.
5. The new page that will appear for you contains the selection of all items in the double deposit.
For the first step, you must choose one of the available digital currencies for purchase. For example, if you buy Ethereum, your earnings will be in Ethereum or USDT.
The second step is to choose the settlement day. Among the available dates, choose one according to your strategy and analysis.
The third step is to select the target price from among the available options.
In the fourth step, you must specify the amount of your property to buy.
After checking all the entered information, you can click on the Confirm option.
At this stage, you cannot use your deposited property. Your deposit will be locked until the settlement day.
Finally, after the settlement day, the Kocoin exchange will deposit your earnings to the same account where you made the purchase.
Double investment in Binance exchange
Another exchange that provides you with the possibility of double deposit is the Binance exchange. Unfortunately, currently, the account of Iranian users in the Binance exchange is blocked and its use is prohibited for Iranian users. But it is better to familiarize yourself with the environment of making double deposits in the Binance exchange.
Go to the website of the Binance exchange and open your account. If you haven’t opened an account in this exchange yet, create a new account for yourself and authenticate it.
From the top menu, select Earn Select and from among its subcategories, on the option Dual investment click.
On the opened page, you will see several digital currencies listed, from which you must choose one.
Now, specify whether to sell or buy that digital currency.
At this stage, you should also specify the target price and settlement date.
After completing the dual investment information, enter the amount you want to invest to be deducted from your account.
Finally, after reading the service agreement, confirm the deposit and wait for the settlement date.
Market conditions and dual investment
Generally, Double deposit It is a relatively low risk deposit method. For this reason, it is often recommended to beginners in the cryptocurrency market. In this type of investment, even in the event of a loss, you still receive your income from locking in your assets. So, almost the loss in double deposit can be compensated. However, before starting any deposit, you should pay attention to the market conditions and analyze the future days for the settlement date. Market conditions for investment depend on your goal. Whether your goal is to buy at a low price or sell at a high price is important. Because you should start investing according to it and your analysis of the market.
What is double investment writing? Introduction of Dual investment for the first time on Valax blog. appeared.
