Dual Investment is a great way to optimize your income, no matter the market conditions. It’s a unique product that combines buying and selling crypto with receiving interest.
Understanding Dual Investment
Dual Investment allows you to exchange major crypto pairs, such as BTC/USDT or ETH/USDT, at a future date if a certain price is met. While waiting for a potential exchange, you’re earning interest on your subscribed assets.
Let's explore an example of how Dual Investment works. This scenario will provide a clear illustration of how you can manage your portfolio using BTC and USDT:
Strategy Selection: Choose between the Buy Low and Sell High strategies based on whether you aim to buy BTC at a lower price with USDT or sell BTC at a higher price for USDT. After that, you need to choose from preselected Target Prices and Settlement Dates that suit your strategy.
The Returns: What you receive on the Settlement Date depends on where the market price is in relation to the Target Price:
Sell High Strategy: If the BTC market price is higher than your Target Price, the subscription is automatically exercised. You'll sell BTC at the Target Price, receiving USDT, plus interest in USDT.
Buy Low Strategy: If the BTC market price is lower than your Target Price, the subscription is automatically exercised. You'll buy BTC at the Target Price, receiving your BTC, plus interest in BTC.
What happens if the Target Price isn’t met? If the Settlement Date is reached and the Target Price is not met, your subscription is not exercised. In this case, you'll receive back the currency you’ve subscribed with plus the interest in that same currency.
Dual Investment provides a structured approach to earning interest while possibly rotating your portfolio. Here are the use cases you might consider.
1️⃣ Taking Profits: Dual Investment can be a smart way to realize gains while earning interest. Here’s how it works:
Choose the Sell High Strategy: Let’s assume you have BTC, and your average purchase price is $29,000.
Choose Your Preferred Target Price and Settlement Date: Decide from the available Target Prices, that you deem likely to realize profits (for example, $32,000), at the Settlement Date that is most convenient for you, say one week from now.
Profit at the Settlement Date: If BTC reaches or exceeds $32,000 on the Settlement Date, your BTC will be sold for USDT at a profit with interest accumulated for the period, also in USDT. If the Target Price is not met at the Settlement Date, you will receive your BTC plus earned interest in BTC.
2️⃣ Buying the Dips: With Dual Investment, you can also accumulate blue-chip assets on market downturns while earning interest. Here's how it can be implemented:
Select the Buy Low Strategy: Consider BTC is currently priced at $36,000, and you have USDT that you’re willing to exchange.
Set a Lower Target Price: Choose a Target Price for BTC, like $34,000, with a Settlement Date set for a week ahead.
Purchase at Target Price: If BTC falls to $34,000 or lower on the Settlement Date, for instance, you will buy BTC, and also receive the interest in BTC. If BTC doesn't drop to $34,000 by the Settlement Date, you will receive interest in USDT, plus the amount in USDT used for the subscription.
3️⃣ Growing Your Holdings: The product can be ideal for those who want to earn interest on their crypto holdings and don’t anticipate large market movements.
Choose Sell High: Suppose you have BTC, currently priced at $35,000.
Pick a Higher Target Price: Set a Target Price that is far away from the current price, say $40,000, with a Settlement Date a week away.
Earning Interest: If BTC stays stable or decreases in price and doesn’t reach the Target Price, you don’t sell your BTC. In such a scenario, you earn interest on your BTC holdings and receive back your BTC.
There’s also a possibility to use a combination of Buy Low and Sell High to fit your investment style. All presented use cases of our Dual Investment product offer guaranteed interest whether the market moves up, down, or stays stable. Remember that their success depends on the market conditions and requires a thorough understanding of the product.
How to Start with Dual Investment on the Nexo Аpp
After you create a Nexo account and verify your identity, you need to top up BTC, USDT, or ETH - you can do so via debit or credit card purchase, or а crypto transfer from an external wallet. You can then begin using Dual Investment directly from your dashboard on the Nexo platform or access it from the Savings Hub of your Nexo app.
1. Pick Buy Low or Sell High and select one of the subscriptions.
2. Choose the amount you want to subscribe with and view the potential returns.
Keep in mind that once you subscribe to a strategy, your assets will be locked until the Settlement Date and you cannot cancel the subscription. You also can’t change the subscribed amount, Target Price, or interest rate, once you subscribe. If you want to learn more about how Dual Investment on the Nexo app works, please visit our dedicated article.
Currently, the minimum amount depends on the asset you subscribe with. The minimum for BTC is 0.1 and for ETH it is 1. When subscribing with USDT to a Buy Low strategy, the minimum amount depends on the target price. For example, subscribing to a Buy BTC Low strategy with a target price of $23,000 will require 2,300 USDT. The same strategy with a target price of $24,000 will require subscribing with at least 2,400 USDT.
There's also a shared quota among Nexo users - when reached, no more subscriptions are accepted.
Before Your Start
When considering Dual Investment, particularly in the volatile world of cryptocurrency, understanding the inherent risks is vital. There is potential for buying at a higher price or selling at a lower price than anticipated. This scenario can occur if the market price significantly diverges from your Target Price. While there's no danger of losing your subscribed digital assets, transactions might occur at less favorable prices than you hoped for. It’s also important to note that Dual Investment doesn’t guarantee a minimum return.
Dual Investment is a great way to earn income on your cryptocurrency holdings. It is easy to use and offers a variety of features that can help you optimize your earnings. Get started with Dual Investment today ⎯ available on both the Nexo app and our web platform.