Dual Currency Investment

[wtsimis]

Many platforms for volatility in the crypto market offer high risk and good income opportunities. One such high-risk investment is Dual Currency Investment. The method is only available in Binance and Bybit. When a user goes to the investment option, you can see this segment in the exchanger. I show the option of BYBIT as an example.



As soon as you go to this option, you will see that APY returns like 300% / 400%. It feels good at first sight. So many returns on investment would seem surprising. But this whole option is very complicated and risky.



Before investing, you need to look at the settlement date * (i.e., how many days you want to support).
Suppose today's bitcoin price is 44000; now, you have invested 100$ in this rate. Now, after 24 hours, if the price goes below  $44000, you will get extra bitcoin at the rate of (300% /  400% APY rate whatever) and if the price of bitcoin goes above $44000 then at that rate USDT Will get.
Usually, the APY rate of this option is much higher than other investments, but in fact, it is a very high-risk investment plan. If the price goes down, the people will hand over some more bitcoins, and if the price of bitcoin goes to the bar, they will hand over USDT to you.
You can also invest in this plan by investing USDT if you want.

I never suggest such an investment. If someone wants to invest after seeing the high APY, there is a request to check once and then invest.


The article is translated from: https://bitcointalk.org/index.php?topic=631891.msg59641770#msg59641770

[mindrust]

Why don't Binance rename their exchange into a casino? They have many games like this you described in your OP. I remember there was those LONG, SHORT tokens but somehow they didn't work when there were sharp market movements and people went mad at binance.

This is just another dice game which you can replicate by buying/selling on spot.

[Beerwizzard]

Few more services are providing such service. Seen it on matrixport and I guess there should be on some on some of decentralized exchanges. Just IMO but altcoin staking may be far more dangerous since despite insane apy it may lose price before you unstake it. At least Dual currencies are nominated not in garbage coins and you wouldn't end up with nothing.

You see 300-400% APY on some Dual Currency offers because they are expiring soon and wouldn't last for a year.

[JeromeTash]

Echoing what Mindrust said. All the various products in exchanges like Binance such as Liquidity farming, Defi staking, dual currency investment. Locked staking etc. are just a bunch of crappy products created to get Binance more money in terms of fees and traffic. Anything thing with such high APYs means also high risk of losing some or all assets.

If I can't day-trade, I would rather stick to buying and holding.

[mk4]

Can't believe they created their own name for liquidity providing lmao. But I guess they tried their best to dumb things down for the typical newbie exchange user.

If anyone's wondering what the potential losses are with impermanent loss: https://dailydefi.org/tools/impermanent-loss-calculator/

[Husires]

I did not understand how it works, but

• why does APY decrease with increasing time?
• The return on one day is higher than 5 days, is it not assumed that the longer the time, the higher the prediction of the bitcoin price becomes, and therefore the risk increases, which means that the profit will increase?
• Where will the difference come from?
• Is there a specific POOL? Margin or what?

I have no knowledge of the derivatives market but it is supposed to be Earn Up to 56% APY and not more than 100%.

[Beerwizzard]

I did not understand how it works, but

• why does APY decrease with increasing time?
• The return on one day is higher than 5 days, is it not assumed that the longer the time, the higher the prediction of the bitcoin price becomes, and therefore the risk increases, which means that the profit will increase?
• Where will the difference come from?
• Is there a specific POOL? Margin or what?

I have no knowledge of the derivatives market but it is supposed to be Earn Up to 56% APY and not more than 100%.

APY is decreasing because the settlement price is higher in such case. Therefore, you have more control over which currency you gonna get in the end.
High APY is a bit tricky thing. For 1 day contracts it is harder to guess the closure price. Therefore, you got a higher reward but since it is just 1 day contract the actual reward would be pretty small. This small reward would be recalculated like if you've been investing 24/7 for a year (you probably wouldn't be investing like that) and show a huge APY.

[wtsimis]

I did not understand how it works, but

• why does APY decrease with increasing time?
• The return on one day is higher than 5 days, is it not assumed that the longer the time, the higher the prediction of the bitcoin price becomes, and therefore the risk increases, which means that the profit will increase?
• Where will the difference come from?
• Is there a specific POOL? Margin or what?

I have no knowledge of the derivatives market but it is supposed to be Earn Up to 56% APY and not more than 100%.

The investment plan is only in BInance and Bybit and as far I know, it's not any pool or margin, it's just an investment plan. You'll better know from this quote post, where a member describes properly how one can increase his/her holdings with this risky plan. You can translate it.

এটি তো লম্বা সময়ের হোল্ডারদের জন্য খুবই ভালো উপায়।   আমি আমার নিজের একটি কৌশল সবার জন্য বলে দিতেছি:
 
প্রথমত ধরে নিলাম বিটকয়েনের মূল্য কমে গেল, তাহলে আমি বিটকয়েন পাবো। এরপর আমি বিটকয়েনের মূল্য বৃদ্ধির জন্য অপেক্ষা করব, কিন্তু সেটিতে বিনিয়োগ করব নাহ। যখন বিটকয়েনের মূল্য আবার বৃদ্ধি পাবে, তখন আমি বিটকয়নকে ডলারে কনভার্ট করার পর বিনিয়োগ করব। এরপর মূল্য হ্রাসের অপেক্ষা করবো, এতে আবার বিটকয়েন পাবো। এরপর এমন করে পুনরাবৃত্তি করতে থাকবো এবং আমার বিটকয়েন হোল্ডিং বৃদ্ধি পাবে।  

যারা দীর্ঘসময়ের জন্য বিটকয়েন হোল্ড করতে চান আমার মতো, তারা এই কৌশল নিজের রিস্কে ব্যবহার করুন। আশা করি, ক্ষতি হবে নাহ। কেননা আপনার বিটকয়েনের পরিমাণ বৃদ্ধি করা দরকার। বাকি আপনাদের মর্জি।

If you can translate it, you'll know why the exchanger decreases the rate for increasing settlement time.

[buwaytress]

Should check this section of forum more often for gems like these. Would have lol'd my own take but I see they've all been capably done by mk4 mindrust and others.

That's just fancying up liquidity provision, for a cut. I guess now that Defi scalpers (sorry I still feel nauseous even spelling the word) run out of ground on them DEXs, Binance trying to attract them to this instead.

Can't say they're not smart business people.