The dual currency winning system has some differences among various platforms, and the details covered by these differences can be extensive. Therefore, let me introduce how to invest in $BTC through dual currency investment on #Binance.
First of all, Binance's dual currency investment skips weekends, meaning there are no settlements on weekends. The settlement time is also at 4 PM. As you can see, I placed my order at 2:41 AM, just before going to sleep. In fact, it was executed at 8 AM this morning, but I won't be able to access my BTC until 4 PM on February 9th (Monday). If I don't buy it, I will receive USDT instead.
Binance's dual-currency investment can also be used for high selling and low buying, so can dual-currency investment be used for arbitrage?
The answer is yes, but to engage in this kind of dual-currency investment arbitrage, you must have both USDT and Bitcoin, because selling high uses $BTC. So, assuming I already have one BTC bought at $63,000, I want to sell it at $70,000, but I feel that placing an order has no interest, then I can choose to sell high to place an order.
You can see that if I place an order to sell one Bitcoin at $70,000, it will be 'settled' at 4 PM on February 9. If the price of BTC is equal to or higher than $70,000 at that time, I will receive $70,245 in USDT. However, if the price of BTC remains below $70,000 until the settlement time, I will receive 1.0035 BTC.
So it is obvious that if I intend to place an order to sell at $70,000, the high sell in dual currency will bring me an interest income of 245 USDT (executed) or 0.0035 BTC (not executed).
Of course, friends might also notice that if tonight Americans go crazy and suddenly buy a lot, pushing the price of BTC to $80,000 or even higher, but I still want to sell my BTC at $70,000, the dual-currency investment order cannot be canceled after placing, and you have to pay for your own judgment.
So dual-currency investment can indeed bring additional earnings compared to ordinary order books, but it loses flexibility; buying or selling is the same. Moreover, using dual-currency investment for hedging will be slower, and if the transactions do not match in order, you need to have both USDT and BTC equipped at the same time, which is slightly more complicated than contract hedging.
Some friends might say, I just want to sell at $100,000, so can I place an order at $100,000 and wait? The answer is no; I checked the highest dual-currency investment order price on Binance currently, which is $90,000, and you have to wait 77 days for settlement. Moreover, the other two dates of 112 days and 140 days have not exceeded $90,000.
This also shows that you cannot just place any price whenever you want; you need to look at the 'schedule' released by the exchange. Only orders within the schedule can be placed, and buying and selling are the same.
Of course, if you just want to sell at $90,000 and don’t mind waiting for 77 days, then indeed using dual-currency investment to place an order should yield higher returns. If it reaches $90,000 before settlement, you will receive $90,729, and the $729 is your return for 77 days. If it does not reach this price, you will receive 1.0081 BTC, and the 0.0081 BTC is your return for 77 days.
So for me personally, dual-currency investment is a very good short-term tool. If I consider using it long-term, it should be to buy low and mainly used for financial management. If this can really be realized, it is a price I can accept.
For example, if I don't believe that the BTC in this cycle can drop below $48,500, I will place $1 million at the position of $48,500. The settlement time is 49 days. If it indeed does not reach $48,500 at the time of settlement, I will receive $1,010,000 in USDT. The $10,000 is my interest income for these 49 days, which is about 7.74%. Although it's not a lot, it's definitely higher than the financial products of the exchange itself, about twice the income of US Treasury bonds.
However, if I predict incorrectly and BTC really drops below $48,500, I will get 20.8247 BTC. I think this price should be acceptable; I bought it, so I bought it.
Using dual-currency investment with this mindset will be more comfortable.