What's your strategy for crypto trading pairs?
In the crypto space, trading pairs are fundamental. They allow traders to exchange one cryptocurrency for another, often pairing a dominant currency, like Bitcoin or Ethereum, with many others.
While it can be daunting to trade crypto pairs, our Dual Investment structured product makes it simpler and intuitive to do so. The innovation behind the product allows you to earn interest while giving you the option to buy at discounts or sell at premiums to the current market price.
We offer a variety of target prices above and below the current market price based on your preferences, along with 20 coins, assured ordered execution, and zero trading fees.
In this article, we'll explore trading crypto pairs using Dual Investment and share some helpful strategic examples.
What is Dual Investment?
Dual Investment is a structured product that rewards you with earnings. If the target price of a coin is met, you can successfully buy or sell the asset at the target price.
How does Dual Investment work?
Let's say you have BTC or USDT in your portfolio. If you hold USDT, you can buy BTC when its price is low. Or if you hold BTC, you might sell it at a high price for USDT.
Here's how to achieve this with Dual Investment:
Select your strategy: Choose whether you want to buy low or sell high.
Choose your target price: Select the target price you're comfortable with.
Wait and watch: Here's what you'll get on the expiration date if your target is met.
For buy low, if the BTC price is at or below the target price, you buy BTC and receive earnings in BTC; otherwise, you receive earnings only in USDT.
For sell high if the BTC price is at or above the target price, you sell BTC and receive earnings in USDT; otherwise, you receive earnings only in BTC.
What are trading pairs?
Crypto trading pairs represent two cryptocurrencies that can be exchanged for one another on a trading platform. For instance, a BTC/ETH trading pair denotes that you can trade Bitcoin for Ethereum or vice versa.
Mechanics of executing a trade
When you see a trading pair like BTC/ETH, the first currency (BTC) is called the base, while the second (ETH) is the quote. If the current rate is 0.05, you need 0.05 BTC to buy 1 ETH. To execute a trade, you would select the trading pair, decide the amount you want to trade, and then place a buy or sell order at your desired price.
Liquidity in crypto trading pairs
Liquidity refers to how easily assets can be converted to cash without affecting their price. High liquidity means large volumes of trades can be executed without causing significant price fluctuations. A trading pair's liquidity is crucial because it allows for smoother trades and more accurate pricing. Always remember that higher liquidity often results in lower trading costs.
The different types of crypto trading pairs
While Dual Investment only offers stablecoin pairs, it's important to understand the different crypto trading pairs. However, the most commonly traded pair is the stablecoin pair, whether you're buying BTC for USDT or selling BTC for USDT.
Fiat-to-crypto pairs: These are trading pairs where a cryptocurrency is paired with a traditional fiat currency, like USD, GBP, or JPY. For example, BTC/USD represents the exchange rate between Bitcoin and US dollars.
Crypto-to-crypto pairs: This refers to trading pairs where two different cryptocurrencies are paired. An example is BTC/ETH, indicating the exchange rate between Bitcoin and Ethereum.
Stablecoin pairs: This is a trading pair where a cryptocurrency is paired with a stablecoin. Stablecoins are digital assets pegged to the value of a fiat currency, providing stability. An example is BTC/USDT, where USDT (Tether) is a stablecoin pegged to the US dollar.
Why choose Dual Investment?
OKX Dual Investment is an innovative structured product in the crypto space, providing a simple way for traders looking for a blend of flexibility and potential returns.
Zero fees: Subscribing to Dual Investment on OKX means no additional fees. What you invest is what gets put to work.
Risk management: You're in control. Decide how much risk you'll take and select products that align with your financial goals and appetite.
Flexible returns: Whether the market is bullish or bearish, there's an earning potential. You may grow your funds and potentially execute trades at a favorable price.
Example: Dual Investment
Let's simplify this concept with a BTC scenario: you opt to sell BTC at a specific target price, expecting it to rise.
Scenario A: BTC doesn't meet your target price by the term's end. In this case, not only do you keep your BTC, but you also earn additional BTC as a reward for holding.
Scenario B: BTC hits or surpasses your target price. You've sold your BTC for more than you initially paid, and in return, you earn extra USDT.
While Dual Investment offers flexibility and potential rewards, it's essential to remember that it's a non-principal protected product. The final payout, whether in crypto or stablecoin, is contingent on the market conditions at expiration.
Dual Investment allows you to navigate the unpredictable world of cryptos with a safety net, ensuring gains regardless of the market's direction.
How does Dual Investment work?
Read on for a video and step-by-step guide to help you get started with Dual Investment today.
Go to OKX APP/WEB, select the 'Grow' tab
Go to Structured Products > Dual Investment
Select the crypto you want to subscribe
Choose whether you want to 'buy low' or 'sell high'
Choose the term and target price
Input your amount (E.g. a minimum of 10 USDT for buy low or 0.0001 BTC for sell high)
Continue and subscribe
We currently offer 20 coins for you to explore with Dual Investments, from PEPE to ETH, BTC, and more.
Dual Investment offers welcome flexibility with duration periods of:
1-7 days
7-30 days
30+ days
To help you fully understand your Dual Investment options and make the right choice for you, here are the definitions of some key terminology.
Target price: The benchmark price used to compare the price at expiry, when the product matures to determine the final settlement currency.
Expiration time: Means 16:00 (UTC+8) on the product's expiration date.
Term rate: The absolute rate of return for the product derived from the rate (APR). The calculation formula is: Term Rate% = Term * (est APR % / 365). Term calculates the settlement amount when it's due.
Interest accrual time: The next nearest hour after the Dual Investment product is successfully purchased. For example, if the product is successfully purchased at 14:15 (UTC+8), the interest will accrue from 15:00 (UTC+8).
The final word
Dual Investment is a financial mechanism tailored for a crypto market that transitions between steady and volatile phases. Users select a primary cryptocurrency pair, aiming for consistent rewards based on a predetermined target price.
You'll be rewarded with earnings in your chosen cryptocurrency if the target price is achieved by the expiration date. Conversely, if the target isn't met, you'll benefit from earnings accumulated on stablecoin investments.
It's important to understand that Dual Investment, while promising, carries inherent risks. The outcome is deeply tethered to the ever-evolving crypto market, which is unpredictable.
You might miss potential higher gains if your selected cryptocurrency fails to reach the target price. With the return system rooted in a fixed target, it may not always reflect broader market trends or expectations.
Disclaimer:
THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE OR SELL OR HOLD DIGITAL ASSETS. DIGITAL ASSET HOLDINGS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.
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