Binance Dual Investment Quiz Answers: Earn Free ETH

Last updated: 12/05/2022 09:30

It’s likely that you’d like to buy cryptocurrency at a cheap price and sell it when it rises in value. This isn’t always simple, as it’s nearly difficult to predict when the market will rise or fall. And even if you think you’ve hit rock bottom, you haven’t even come close.

If you’re familiar with Binance’s interface, you might have seen “Dual investing” in the earn section.

By using a novel approach to the age-old “buy low, sell high” maxim, dual-investing on Binance could help you reap substantial financial rewards. Allows investors to profit regardless of the state of the market. Thus, it is a wonderful supplement to standard spot trading.

Not everyone can use it. Due to the fact that it is quite intricate. After I explain everything about this feature and provide you some examples, you can decide for yourself whether or not you want to use it. The answers to the Binance quiz may be found at the conclusion of this post so that you can give it a shot yourself.

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Binance Dual Investment, Explained

You need to make two investments since you can go in opposite directions. Using an Acquire Low Dual Investment strategy, you can make money and wait to buy cryptocurrency when prices are lower. Another option is to use Sell High Dual Investment to buy cryptocurrencies at a discount and sell it later for a profit.

This means there are four potential results.

Using the Buy Low Dual Investment strategy:

If the price reaches your preferred target, your cryptocurrency will be “sold” at that price, resulting in additional earnings. For example, if you sign up with BUSD against BTC and BTC falls below your targeted price, your BUSD will be exchanged for BTC and you will receive a bonus %.
If the price is not met, you will still receive the APY yield.

Using the Sell High Dual Investment strategy:

Your investment will be converted into an alternative cryptocurrency if the asset’s price increases over the target price. If you sign up with BTC versus BUSD (as an alternative cryptocurrency) and the price of BTC rises over your desired value, your BTC will be sold for that stable coin.
If the price does not exceed the target price, the APY yield on your deposited cryptocurrency will still be paid.

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Potential Dangers of Binance Dual Investment

The inability to terminate the subscription presents the greatest danger associated with Dual Investments. Locking assets prevents access until the subscription expires.

As you can see from the above instances, if the market deviates too far below or beyond your target price, you may suffer significant losses in USD value.

However, there is an additional danger associated with this subscription because it cannot be terminated. The payoff is locked in at the starting bid. You risk losing some or all of your capital if the trade does not go through. During the lockup time, Bitcoin that was once worth $10,000 would have increased in value to $10,055. However, due to the fact that the product has not yet been produced, you will only receive $10,000 in Bitcoin plus APY. This means that you will incur some financial losses. That $5,000 profit is not going your way. However, the Bitcoin value relative to $10,000.

As a result, engaging in Dual Investment is not without significant peril. But if you plan to keep the investment for the long haul, you have nothing to worry about.

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Binance Dual Investment Quiz Answers

Just so you know, there is a little quiz you’ll need to pass before you can use the Binance Dual Investment option, as I said at the beginning of this article. It’s not difficult, however I would recommend learning more about the product on your own before relying on my Quiz answers. But if you insist, here are the solutions to the Binance Dual Investment Quiz.

1. What kind of product is Dual Investment?

Answer: Investment product where users have a chance to sell high or buy low at their desired target price on the desired settlement date which does not guarantee a minimum return

2. What is the Target Price and Settlement Date in Dual Investment?

Answer: Target Price = the price at which I want to buy or sell cryptocurrency

Settlement Date = the date at which I want to buy or sell cryptocurrency

3. Once I subscribe, will my Target Price ever change?

Answer: The target price will not change once subscribed

4. I am hoping to sell my 1 BTC for 52,000 BUSD. I subscribed to the BTC Dual Investment “Sell High” product with a $52,000 Target Price to sell BTC.

Answer: At the Settlement Date, the BTC price is $52,500. How much will I receive at the end?

52,000 BUSD + interest yield in BUSD

5. I am hoping to buy 1 BNB at 330 USDT. I subscribed to BNB Dual Investment “Buy Low” product with a $330 Target Price to buy BNB.

At the settlement Date, the BNB price is $345. How much will I receive at the end?

Answer: 330 USDT + interest yield in USDT

6. What are the risks of Dual Investment?

Answer: The risk is that if the market price on the Settlement Date goes far below my Target Price to buy, I am buying at a relatively higher price and vice-versa.

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Conclusion

One of the more involved options offered by Binance is the Dual Investment. The process is more complicated than regular spot trading. But the undeniable benefit is the potential for profit regardless of the state of the market.

However, the additional risks you take on—most notably by tying up your money for an extended length of time—more than cancel out the advantages. Which is not consistent with selling during a severe market drop.

We think it’s a fantastic chance for those who invest for the longer term but yet wish to cash out occasionally while earning excellent returns.

Feel free to ask any remaining questions regarding this function in the feedback section. The official Binance website also features a video guide.

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