Double Investing: The Six Best Trading Strategies

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  • With Double Investments, different strategies can be used depending on your view of the market. Less experienced traders can easily take profits, buy dips, and earn interest on the cryptocurrencies and stablecoins they own. Seasoned traders can open multiple positions with Double Investments and take advantage of short-term market fluctuations.


    Article originally written and published on Binance Academy


For users looking to diversify their investments, Binance Earn products are a good place to start. Investments doubled is one of the most advanced ways to earn, which allows you to buy or sell cryptocurrencies at the desired price on a date chosen by the user in the future. Regardless of your position, you will earn high interest income regardless of the direction the market takes.

Now that we understand the basic concept, how exactly do you start making money? In fact, there are many ways to use Double Investments. Each of them can complement trading strategies and market forecasts. Work!

While it’s easy to get carried away, it’s always a good idea to seek profit when possible. With this particular double investment strategy, you can earn additional returns and earn some of your cryptocurrency profits in the future.
1. Select a product Sell ​​heavily doubled investments on Binance Earn. In this example, we will be looking at the product Ether (ETH). The current price of ETH is $2,900 (all prices are in BUSD).

2. We set a target price of $3,500 and a settlement date per week.

3. We will then have the option to sell the deposited ETH at the target price if it is reached on the settlement date within a week. If on the settlement date the ETH value is 3500 BUSD or more, it will be sold for BUSD.

This eliminates the situation where we forget to take profits or don’t out of greed! At the same time, you will also get APY profits.

4. If the target price is not reached on the settlement date, you will continue to earn APY on your deposited ETH and you will receive your ETH back.

Buying dips is another popular investment strategy that allows you to take advantage of downward pressure in the market. By buying at a lower price, you can anticipate a later rally in the market when you can sell assets at a profit. With the Double Invest program, you can easily plan for potential future declines while earning additional interest income.

1. Select a product Buy low double investments on Binance Earn. In this example, we will be looking at the BTC product that can be purchased with Tether (USDT). The current price of BTC is $39,000.

2. We will select a target price of $36,500 per BTC with a weekly settlement date.

3. If on the settlement date the market price is $36,500 or less, for example $36,000, BTC will be bought at our target price. You will also receive the interest earned.

4. If your target price ($36,500) is not reached on a settlement date, you will continue to earn APY on the USDT deposited before receiving it back.

When entering Double Investments, it is not always necessary to bet on market movements. In fact, you can make good use of a product even when the price remains relatively stable or does not reach the target price. In this case, we simply want to recover the crypto out of interest.

1. Select a product Sell ​​heavily doubled investments on Binance Earn. In this example, we will be looking at a BTC currency product. The current price of BTC is $39,000.

2. We will select a target price of $40,000 per BTC with a weekly settlement date.

3. For just earning APY, we hope that Bitcoin price will stay stable or fall and not reach the target price.

4. On settlement date, the price of BTC is $38,000. This means that you keep your deposited BTC and receive all interest earned. This provides an easy way to earn high interest on the cryptocurrencies you own.

Many of us have stablecoins as a way to keep profits captured in the blockchain ecosystem. However, that doesn’t mean we can’t make them start winning too. This strategy is similar to the previous one because we hope that the target price will not be reached.

1. Subscribe to a product Buy low double investments on Binance Earn. In this example, we will be looking at the MATIC product which can be purchased for USDT. The current price of MATIC is $1.20.

2. We will select a target price of $1.10 for MATIC with a settlement date per week.

3. To earn APY from stablecoins, we rely on the MATIC price to remain stable or rise and not hit the target price.

4. On the settlement date, the price of MATIC is $1.22. This means you keep your deposited USDT and get all the interest you earn on your stablecoins. This way you can easily earn high interest on your assets.

In the previous four strategies, we’ve described simple ways to earn interest and buy or sell at set prices based on your own strategy. However, with Double Investments, more advanced games are also possible.

As always, there are inherent risks involved in investing. This strategy should only be used by seasoned traders who are comfortable in volatile markets. In this example, we expect market volatility, but we don’t have a clear idea of ​​whether the market is bullish or bearish.

To take advantage of this situation, apply a combination of Buy Low and Sell High products. Let’s take an example.

1. Select a product Sell ​​high Investments doubled on Binance Earn. In this case, we will be looking at the BNB product. The current price of BNB is $395.

2. We select a target price of $420 for BNB with a settlement date of one week.

3. The market is very volatile, which means two things can happen.

  1. If the target price is not reached, you will keep your BNB and the interest earned. A new job can be created Sell ​​highthat allow you to earn more interest or sell for a higher price.

  2. If the target price is reached, you will sell your BNB at $420 per unit and earn interest. You can now place an order Buy lowgiving you the opportunity to buy cryptocurrencies at a lower price.

4. Each time the target price is reached, switch to the double investment products in the opposite direction. If the target price is not reached, continue in the same direction until the target price is reached.

5. Playing the market in this way allows you to buy lower and sell higher, while increasing your profits.

Our last strategy is similar to the previous one, but in this case we open two positions at the same time. To do this, you need to have two types of tokens: a cryptocurrency (like BNB) and a stablecoin (like USDT). Let’s see how it will work if the price of BNB is currently $390.

1. Subscribe to the product using BNB Sell ​​high Double BNB investment with a target price of $420 and a weekly settlement date.

2. Use USDT to subscribe to the product Buy low BNB Double Investments. Set the target price at $360 with a settlement date within a week.

3. The market is volatile, leading to three possible outcomes:

  1. The target price for both positions was missed as it remains within the $360-$420 range. In this case, you will keep your original deposits in BNB and USDT as well as the interest earned in both currencies.

  2. The BNB price is at or above $420, which means that the target price of the position has been reached Sell ​​high. Your BNB and accrued interest will be sold at $420 each, and you will also keep your deposit Buy low USDT with interest earned. In conclusion, you can profit from selling BNB and earn interest in USDT.

  3. The BNB price will reach $360 or less, which means that the target price of the position has been reached Buy low. You buy BNB at the price you want and receive interest, while keeping your deposit Sell ​​high BNB with earned interest. In conclusion, you buy BNB at a cheaper price and at the same time earn interest on the BNB.

Double Investing is more than earning interest and buying or selling. This product can be used to plan your trading strategies and the added benefit is the return on investment. So if you’re looking for a way to diversify your investments, Double Investments is a great product to explore.

Disclaimer: Double Investments is not a capital guaranteed product. Subscribed assets are locked and users cannot cancel or redeem before the settlement date. If the market price drops significantly below the target buy price on the settlement date, you will buy at a price relatively above the market price and vice versa. Binance is not responsible for losses incurred as a result of price fluctuations. Please read the product terms carefully before approving your subscription.

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