Bybit offers something called dual asset mining. This is called dual asset investment, and it is an investment that can be expected to make a profit even in times of little price fluctuation just by predicting the price movement of the cryptocurrency. What are the advantages of dual asset mining?
- What is Dual Asset Investing?
- Types of cryptocurrency pairs
- Earnings structure
- Advantages of Dual Asset Investing
- Disadvantages of dual asset investment
- How to start dual asset investing
What is Dual Asset Investing?
Dual asset investment is a short-term investment type asset management product that can aim for high returns, although it is limited to periods with little price fluctuation. By predicting the price movement of virtual currency and staking it, it is a method that you can get a high yield with low risk when there is no big change in the market price. At maturity, you can receive your earnings in USDT or your chosen cryptocurrency depending on the settlement price and mark price. Dual Asset Investing allows you to choose the type of cryptocurrency you want to deposit.
Types of cryptocurrency pairs
Bybit offers dual asset investments in the following currency pairs:
For dual asset investment, the currency to be paid is determined by the “base price” at the start of staking and the “settlement price” at the end of staking. Dual-asset investing allows you to earn staking rewards regardless of whether the price moves in either direction.
When the asset to be staked is USDT
If the settlement price is lower than the base price (receiving BTC, ETH, etc.): Revenue = deposit amount ÷ base price x (1 + annual yield ÷ 365 x days)
If the settlement price exceeds the base price (receipt is USDT): Revenue = deposit amount x (1 + annual yield / 365 x days)
When staking assets are BTC/ETH/BIT, etc.
If the settlement price is lower than the base price (receiving BTC, ETH, etc.): Revenue = deposit amount x (1 + annual yield / 365 x days)
If the settlement price exceeds the base price (receipt is USDT): Revenue = deposit amount x base price x (1 + annual yield / 365 x number of days)
Advantages of Dual Asset Investing
Dual asset investments have the following characteristics:
Choice of virtual currency
The advantage of dual asset investment is that you can basically choose the currency you deposit. Also, there is a condition that it must be paired with USDT.
Since the USDT pair is basically selected, it has the advantage of avoiding the risk of a crash. Compared to exchange rates, cryptocurrencies are much more volatile. You may also lose a lot.
Mining can be canceled at any time
Double mining can be canceled at any time. Depending on the user’s will, if you want to convert it to cash, you can withdraw it at any time, so it will not be blocked.
Dual-asset investing allows you to start small. Dual-asset investments have a minimum staking amount for each currency pair. The minimum stake amount is set low, creating an environment where you can invest from a small amount.
Disadvantages of dual asset investment
Explain the disadvantages of dual asset investment.
Loss of principal
With dual-asset investing, the principal and profits are granted to the user after staking ends. However, the principal is not guaranteed. There is no guarantee of principal in investing, so there is always the possibility of risk.
Of course, there is no guarantee that the coin you are investing in will necessarily rise. High volatility is common knowledge in the virtual currency market, so it is true that the risk is quite high as there is a good fear that it will suddenly crash.
Once you purchase a dual asset investment, you cannot cancel it midway. Therefore, please note that it is not possible to redo the process.
How to start dual asset investing
To start dual asset investment, please finish opening an account first. I will introduce it in the following article. Dual asset investment is possible only after completing KYC level 1 authentication.
After opening an account, please log in. From Home, select “Finance” → “Asset Management” → “Dual Asset Investment”.
Choose the currency pair you want to buy.