What is Dual Investment: A Beginner's Guide to Earning Crypto Returns

Dual Investment is a structured crypto product that allows users to earn returns while managing risk through automated market strategies. Stobix offers a way to generate yield on digital assets such as BTC, ETH, or USDT while participating in a "buy low, sell high" mechanism. This guide explains how it works, key concepts, and how to use it effectively.

How Dual Investment Works

Dual Investment enables users to automate market strategies without needing to predict price movements manually. Here’s how it works:

1. You deposit one cryptocurrency (such as BTC, ETH, or USDT).
2. The platform automatically sets up your position.
3. At settlement, you receive either:
   1. Your original crypto plus earned returns.
   2. An alternate crypto (e.g., stablecoin or digital asset) at market price plus earned returns.

This structured approach allows investors to earn passive income regardless of whether the price moves in their favor or not. Stobix supports over 70 cryptocurrencies, making it a flexible option for various assets.

Understanding Settlement Outcomes

To better understand how Dual Investment works, let’s take an example using BTC/USDT:

• If you start with BTC:
  • If the price rises, you receive USDT (selling high) + interest.
  • If the price falls, you keep your BTC + interest.
• If you start with USDT:
  • If the price rises, you keep your USDT + interest.
  • If the price falls, you receive BTC (buying low) + interest.

This means you always benefit from a return on your investment, even if the price does not move in the expected direction.

Investment Durations and Flexibility

Dual Investment strategies can be tailored based on different time horizons:

• Short-term (8 hours): Quick market exposure with fast settlements.
• Daily (24 hours): A balanced approach with frequent opportunities.
• Extended (72 hours or more): Designed for traders who prefer longer market engagements.
• Weekly & Monthly: Longer durations suit advanced traders seeking strategic positioning.

The minimum investment amount is usually low (about $10), making it accessible for users to experiment with different strategies.

ATM vs OTM Pricing: Choosing the Right Approach

Dual Investment platforms offer different pricing models that impact strategy and potential returns:

At-The-Money (ATM):

• Trades execute at the current market price.
• Higher potential returns compared to OTM, sometimes significantly higher.
• Simplifies the investment process.
• Removes the need to predict future price levels.
• Best suited for beginners and most investors, as it provides stable and predictable outcomes.

Out-of-The-Money (OTM):

• Trades execute at a predetermined price level.
• Requires selecting a target price.
• Typically involves a more complex strategy.
• Can offer specific risk/reward trade-offs, making it more suitable for advanced traders.

For most users, ATM-based Dual Investment is the ideal choice, offering a straightforward approach with strong yield potential. However, experienced traders familiar with traditional options concepts may find OTM strategies useful for specific market scenarios.

Dual Investment Risks

While Dual Investment provides structured returns, it is important to understand its limitations:

• Locked Funds: Assets are held until the settlement date, but Stobix offers an Early Redemption feature, allowing users to exit the deal earlier for a small fee.
• Market Price Risk: If the price moves significantly in the opposite direction, you may end up with an asset you did not initially intend to hold.
• Volatility Impact: Sudden market movements can impact the effectiveness of Dual Investment, particularly for long-duration trades.

Understanding these risks will help users manage their exposure effectively and use Dual Investment as part of a diversified strategy.

Best Practices for Beginners

To maximize success with Dual Investment, follow these best practices:

• Start small – Test the mechanics with a small amount before committing more funds.
• Choose short durations – Gain experience with 8h or 24h terms before trying longer ones.
• Watch the market – Stay informed on trends to make smarter decisions.
• Diversify investments – Spread funds across different cryptos and durations to balance risk.
• Use Early Redemption – Exit early if market conditions change, even for a small fee.
• Prefer ATM pricing – Best for beginners, offering higher returns and easier execution.
• Reinvest profits – Grow your returns by rolling earnings into new positions.
• Keep cash available – Always have some funds ready for new opportunities.

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Conclusion

Dual Investment provides an innovative way to earn passive returns while engaging in structured crypto trading. Whether you choose an ATM-based approach for simplicity or an OTM strategy for greater flexibility, this method can help optimize your portfolio.

By understanding settlement mechanics, pricing models, and risk factors, you can make informed decisions and leverage Dual Investment to enhance your crypto earnings over time.