What are Dual Currency Products?
Gate.io Dual Investment is a non-principal-protected financial product with floating income. The product’s yield rate is fixed and clearly defined at the time of purchase. Once a subscription is successful, the order cannot be canceled, nor can early redemption be made before maturity. Upon purchase, investors are guaranteed to receive a fixed minimum return in the originally invested currency by the settlement date. However, due to market fluctuations, the invested currency may be converted into another currency, which is the key feature that makes Dual Investment attractive to investors.
What is Gate.io Dual Investment?
Gate.io Dual Investment is a non-principal-protected financial product with floating income. The product’s yield rate is fixed and clearly defined at the time of purchase. Once a subscription is successful, the order cannot be canceled, nor can early redemption be made before maturity. Upon purchase, investors are guaranteed to receive a fixed minimum return in the originally invested currency by the settlement date. However, due to market fluctuations, the invested currency may be converted into another currency, which is the key feature that makes Dual Investment attractive to investors.
Given the ongoing value fluctuations in the crypto market, the settlement currency for Dual Investment is uncertain. At maturity, the settlement currency depends on comparing the settlement price and the target price. For example, if the settlement price is higher than the target price, your earnings will be in USDT; if the settlement price is lower than the target price, your earnings will be in BTC.
Simply put, Dual Investment allows you to deposit one cryptocurrency and earn returns based on two assets. By locking in a yield rate, you can generate returns when the value of your invested assets increases. The final amount of earnings you receive will depend on the performance of the staked asset at the maturity date.
How Dual Investment Works
The core strategy of Dual Investment is simple: Buy Low and Sell High.
- Dual Investment: Buy Low
When users plan to purchase cryptocurrency but are uncertain when to enter the market, they can use the “Buy Low” strategy of Dual Investment. Regardless of whether the purchase is successful, users can earn returns.
Example:
Alice chooses a product with a 5-day term and a target price of $60,000 for BTC.
At settlement date, two scenarios are possible:
- BTC Settlement Price > $60,000: The yield strategy succeeds, and Alice receives both her USDT principal and USDT interest earnings for the investment period.
- BTC Settlement Price ≤ $60,000: The “Buy Low” strategy succeeds, and Alice purchases BTC at the $60,000 target price while earning BTC interest for the investment period.
USDT Buy Low and Earn Strategy - Auto Reinvestment
The Auto-Reinvest feature maintains an ongoing USDT low-buy strategy. When a low-buy opportunity is missed, users earn USDT interest income instead. This interest automatically reinvests to generate compound returns, creating a sustainable strategy that provides consistent USDT earnings.
- Basic Auto-Reinvest: This strategy executes purchases at a predetermined target price, automating the Buy Low and Earn approach. Upon successful low-buy execution, the system converts both the initial investment and accumulated interest into BTC.
After converting to BTC, users can continue selling high at the target price (selling at the same price point). Through auto reinvestment and reinvesting the interest, your assets can grow using compound interest.
- Dual Investment: Sell High
When users hold cryptocurrency and want to sell at market peaks but cannot time the market perfectly, they can use Dual Investment: Sell High strategy. Whether the high-sell succeeds or not, users will earn returns.
Example:
Bob invests in a BTC product with a 3-day subscription period and a target price of $100,000 BTC for selling high. At settlement date:
- BTC Settlement Price > $100,000: The “Sell High” strategy succeeds, BTC is sold at the target price, and Bob receives USDT interest earnings for the investment period.
- BTC Settlement Price ≤ $100,000: The yield strategy succeeds, and Bob receives his BTC principal plus BTC interest earnings for the period.
Advantages of Dual Investment
- High Returns: Buy crypto at low prices and sell stablecoins at high prices for maximum profit.
- Guaranteed Interest: Earn consistent interest returns while funds remain active.
- Zero Trading Fees: No transaction fees for buying or selling.
- No Slippage: Dual investment trading eliminates slippage, reducing transaction costs.
Gate.io Dual Investment Product Principles
In the traditional financial field, relevant Dual Currency Products have existed for a long time, especially in the foreign exchange market. From the financial aspect, Dual Currency Products is a simplified investment product based on options. Users buying Dual Currency Products are similar to selling a set of options to the platform.
When a user purchases Dual Investment, it is similar to selling a set of options to the platform. Options are a relatively complex financial instrument originating as futures’ choice rights. When purchasing options, the buyer needs to pay a premium and gains the right to trade at the agreed-upon price (known as the strike price) within a specific time period.
There are two kinds of options: call options and put options. The buyer of a call option purchases the right to choose whether to “buy” assets from the option seller, while the buyer of a put option purchases the right to choose whether to “sell” assets to the option seller. Based on the buying and selling actions, options can be further classified into four categories:
Various strategies can be formed based on the four most common types of options mentioned above. Among them, Dual Currency Products can be seen as a combination of selling call and put options. When investors purchase Dual Currency Products, they are selling both a call option and a put option to the platform. Regardless of whether the market moves up or down within the strike price range, investors have the opportunity to profit, making it a good way to benefit from volatility.
Investors can achieve maximum profit when the delivery price is equal to the linked price. In situations where the market direction is unclear, Dual Currency Products allow investors to earn regardless of price action within a certain price fluctuation range. The greater the market volatility, the higher the potential yield set for Dual Currency Products. However, when the market price deviates significantly from the linked price, Dual Currency Products may also incur losses. Therefore, Dual Currency Products are financial products with fixed yields but are non-principal protected.
Conclusion
Gate.io Dual Investment, as a structured financial product derived from simple options, is a non-principal-protected product with floating returns that effectively balances risk and reward. It allows users to maximize potential returns while maintaining relatively low risk exposure. Dual Investment can improve capital utilization and efficiency in volatile market conditions where timing is difficult, enabling users to capture more market opportunities when profitable situations arise.
What are Dual Currency Products?
Gate.io Dual Investment is a non-principal-protected financial product with floating income. The product’s yield rate is fixed and clearly defined at the time of purchase. Once a subscription is successful, the order cannot be canceled, nor can early redemption be made before maturity. Upon purchase, investors are guaranteed to receive a fixed minimum return in the originally invested currency by the settlement date. However, due to market fluctuations, the invested currency may be converted into another currency, which is the key feature that makes Dual Investment attractive to investors.
What is Gate.io Dual Investment?
Gate.io Dual Investment is a non-principal-protected financial product with floating income. The product’s yield rate is fixed and clearly defined at the time of purchase. Once a subscription is successful, the order cannot be canceled, nor can early redemption be made before maturity. Upon purchase, investors are guaranteed to receive a fixed minimum return in the originally invested currency by the settlement date. However, due to market fluctuations, the invested currency may be converted into another currency, which is the key feature that makes Dual Investment attractive to investors.
Given the ongoing value fluctuations in the crypto market, the settlement currency for Dual Investment is uncertain. At maturity, the settlement currency depends on comparing the settlement price and the target price. For example, if the settlement price is higher than the target price, your earnings will be in USDT; if the settlement price is lower than the target price, your earnings will be in BTC.
Simply put, Dual Investment allows you to deposit one cryptocurrency and earn returns based on two assets. By locking in a yield rate, you can generate returns when the value of your invested assets increases. The final amount of earnings you receive will depend on the performance of the staked asset at the maturity date.
How Dual Investment Works
The core strategy of Dual Investment is simple: Buy Low and Sell High.
- Dual Investment: Buy Low
When users plan to purchase cryptocurrency but are uncertain when to enter the market, they can use the “Buy Low” strategy of Dual Investment. Regardless of whether the purchase is successful, users can earn returns.
Example:
Alice chooses a product with a 5-day term and a target price of $60,000 for BTC.
At settlement date, two scenarios are possible:
- BTC Settlement Price > $60,000: The yield strategy succeeds, and Alice receives both her USDT principal and USDT interest earnings for the investment period.
- BTC Settlement Price ≤ $60,000: The “Buy Low” strategy succeeds, and Alice purchases BTC at the $60,000 target price while earning BTC interest for the investment period.
USDT Buy Low and Earn Strategy - Auto Reinvestment
The Auto-Reinvest feature maintains an ongoing USDT low-buy strategy. When a low-buy opportunity is missed, users earn USDT interest income instead. This interest automatically reinvests to generate compound returns, creating a sustainable strategy that provides consistent USDT earnings.
- Basic Auto-Reinvest: This strategy executes purchases at a predetermined target price, automating the Buy Low and Earn approach. Upon successful low-buy execution, the system converts both the initial investment and accumulated interest into BTC.
After converting to BTC, users can continue selling high at the target price (selling at the same price point). Through auto reinvestment and reinvesting the interest, your assets can grow using compound interest.
- Dual Investment: Sell High
When users hold cryptocurrency and want to sell at market peaks but cannot time the market perfectly, they can use Dual Investment: Sell High strategy. Whether the high-sell succeeds or not, users will earn returns.
Example:
Bob invests in a BTC product with a 3-day subscription period and a target price of $100,000 BTC for selling high. At settlement date:
- BTC Settlement Price > $100,000: The “Sell High” strategy succeeds, BTC is sold at the target price, and Bob receives USDT interest earnings for the investment period.
- BTC Settlement Price ≤ $100,000: The yield strategy succeeds, and Bob receives his BTC principal plus BTC interest earnings for the period.
Advantages of Dual Investment
- High Returns: Buy crypto at low prices and sell stablecoins at high prices for maximum profit.
- Guaranteed Interest: Earn consistent interest returns while funds remain active.
- Zero Trading Fees: No transaction fees for buying or selling.
- No Slippage: Dual investment trading eliminates slippage, reducing transaction costs.
Gate.io Dual Investment Product Principles
In the traditional financial field, relevant Dual Currency Products have existed for a long time, especially in the foreign exchange market. From the financial aspect, Dual Currency Products is a simplified investment product based on options. Users buying Dual Currency Products are similar to selling a set of options to the platform.
When a user purchases Dual Investment, it is similar to selling a set of options to the platform. Options are a relatively complex financial instrument originating as futures’ choice rights. When purchasing options, the buyer needs to pay a premium and gains the right to trade at the agreed-upon price (known as the strike price) within a specific time period.
There are two kinds of options: call options and put options. The buyer of a call option purchases the right to choose whether to “buy” assets from the option seller, while the buyer of a put option purchases the right to choose whether to “sell” assets to the option seller. Based on the buying and selling actions, options can be further classified into four categories:
Various strategies can be formed based on the four most common types of options mentioned above. Among them, Dual Currency Products can be seen as a combination of selling call and put options. When investors purchase Dual Currency Products, they are selling both a call option and a put option to the platform. Regardless of whether the market moves up or down within the strike price range, investors have the opportunity to profit, making it a good way to benefit from volatility.
Investors can achieve maximum profit when the delivery price is equal to the linked price. In situations where the market direction is unclear, Dual Currency Products allow investors to earn regardless of price action within a certain price fluctuation range. The greater the market volatility, the higher the potential yield set for Dual Currency Products. However, when the market price deviates significantly from the linked price, Dual Currency Products may also incur losses. Therefore, Dual Currency Products are financial products with fixed yields but are non-principal protected.
Conclusion
Gate.io Dual Investment, as a structured financial product derived from simple options, is a non-principal-protected product with floating returns that effectively balances risk and reward. It allows users to maximize potential returns while maintaining relatively low risk exposure. Dual Investment can improve capital utilization and efficiency in volatile market conditions where timing is difficult, enabling users to capture more market opportunities when profitable situations arise.