This tutorial will guide you to understand how to earn more Bitcoins. Explore how Pionex Dual Investment works:
Pionex Dual Investment lets you earn free cryptocurrency on top of your current investment instead of holding idle funds in your wallet or placing a limited order or other yet-to-be accomplished orders.
In other words, you stand a chance to gain from an increase in crypto price/value over the time before the settlement date and still earn a guaranteed APY on the invested amount.
Pionex Dual Investment supports 38 products, among them about 18 cryptocurrencies that are paired against the USDT, USDC, and BUSD stablecoins. This includes BTC.
What You Will Learn:
Learn How to Earn More Bitcoins
Details of the Pionex Dual Investment
Pionex Dual Investment uses the option trading idea.
If one person is agreeing to sell a given asset at a given price in the future to another party regardless of the change in the future market price, the seller may enter into a contract for a premium worth a specified amount and retain the right to sell at the specified price and date, while the buyer bears the risk for the asset’s price change.
If the market price rises above the agreed or target price at the settlement date agreed, the seller may decide to forfeit the contract terms and sell at the higher price in the market but will lose the premium to the buyer.
If the market price stays lower than the target/agreed price in the future at the settlement date, the seller will oblige themselves to fulfill the terms of the contract and sell the sell option to the buyer at a higher target/agreed price than the market price. So the risk to the buyer is that they will buy at a higher price than the market price.
If a party agrees to buy a given asset from another party at a certain target price in future at a future settlement date because the buyer fears the price of the asset will go up, the buyer signs a contract for a specified premium amount to retain the right to buy the asset at that target price while the seller bears the risk due to possible price changes.
In this case, the buyer of the buy option can choose to fulfill the terms of the contract to buy at the targeted price in the future settlement date if the market price is higher than the targeted price. So they will buy cheaper and retain the price difference as profit.
Otherwise, they will forfeit the contract terms and buy from the market at a market price that is lower than the agreed target price. In the latter case, the seller earns the premium amount agreed.
Pionex Dual Investment FAQs
Q #1) What is the trial Fund on Pionex?
Answer: Pionex offers $1,288 trial funds to trial the Dual Investment feature that lets users earn a specified interest on crypto held in Dual Investment trading positions. The trial funds are invested in USDT-BTC or other available USDT-Crypto dual investment options. Anyone can also get $12,888 in referral funds per referee after that.
The trial funds cannot be withdrawn and are returned to Pionex after earning interest on the first investment in a Dual Investment option. Interest can be re-invested or withdrawn.
Q #2) How do you trade on Pionex?
Answer: The first thing is to sign up on the Pionex web or mobile app. Pionex lets you trade a variety of cryptos either with manual orders, swap orders, smart order types, or bots. Deposit crypto by sending it to the right address found under the Deposit page per each supported crypto on your dashboard.
Then head over to Trade or markets and trade or swap cryptos. To trade with the bot, the default Markets tab allows you to create a bot easily by selecting the type of bot and customizing the parameters. Input the amount to trade with the bot and proceed to activate.
The Dual Investment trading feature can be found under the Earn -> Structured -> Manual or Auto Invest page. Click/tap +Invest on the mobile app or if on the desktop, click Details against the Dual Investment options available. Input amount and click/tap Buy to invest in that option.
Q #3) What are the target price and settlement date in dual investment?
Answer: The target price for Pionex Dual Investment is the price you set to buy or sell crypto if it is exceeded. This is not the settlement price. When the market or settlement price exceeds the target price, a sell option is exercised. If not, it is not exercised.
If the market price drops below the target price when buying the dip, then the buy order is exercised and vice versa.
Q #4) Does Pionex work with Coinbase?
Answer: Pionex does not work with or allow you to connect to Coinbase exchange even through APIs. Instead, it is its own crypto exchange. It supports crypto trading like Coinbase. It also uses a separate trading engine.
Q #5) Is the Pionex trading bot legit?
Answer: Pionex is licensed with an MSB license by the Financial Crimes Enforcement Network (FinCEN) of the United States. It is thus a legal investment and trading platform. The platform, however, does not guarantee that the invested or traded funds will generate profits and how much it will.
Crypto trading may be prone to risks like volatility, which customers must take other precautions to shield themselves against.
How Pionex Dual Investment Works
If Pionex is selling the buy option to traders, the trader commits to buying given crypto at a certain targeted price on future settlement date. The trader thus commits stablecoins like USDT to accomplish the buy and the buying price should be a dip buy.
If the market price is lower than the targeted price, the USDT (or other stablecoin invested) is sold and converted to BTC (or other target crypto involved) and given to the user plus an APY interest in the target crypto.
So the user gets more BTC (or target crypto) than expected because of the APY. Notice also that crypto is sold at the settlement price or market price. If the market price is higher than or equal to the agreed target price, the buy option is not exercised, so the customer receives back their USDT investment plus an APY interest.
Therefore, if a trader is investing in a Dual Investment and the target is to buy crypto at a dip, they should look at the possibility of nailing a market price that is lesser than the targeted price they set. In that case, they will buy lower otherwise they will buy at a higher price.
However, remember that the target prices are decided by Pionex – the seller of the buy option, although the trader can choose from many alternatives.
If a trader is buying the sell option from Pionex – in other words, the trader wants to sell crypto invested in the Dual Investment at a certain price in the future, the intention is to sell it at a higher price than the current market price and earn more in USDT or other stablecoins.
If the market price – which is the settlement price exceeds the target agreed price at the settlement date, the crypto will be sold for the stablecoin. The trader is paying their investment in the form of a stablecoin sold at the settlement/market price, plus an agreed APY interest.
If the market price does not reach the agreed targeted price (higher than the market price), the crypto is not sold. Hence, the trader gets their investment in invested cryptocurrency plus an agreed APY. The sell option flops.
Hence, when selling the crypto, the trader would want to consider a target price that the market price will exceed. But Pionex is the seller of the option and decides the target prices, although the trader can choose from the multiple options available.
Auto-Investing Dual Investment
Pionex allows you to automate Dual Investment and earn more of the USDT/USDC/BUSD you want to use to buy a chosen crypto before the market price falls below your target price. You can also use the option to earn more of the crypto you want to sell to USDT/USDC/BUSD in the future before the market price exceeds the target price.
Click or tap Earn -> Structured -> Auto orders -> +Invest, and then either the Buy at a fixed price option or Sell at a fixed price option.
Click or tap the Create button beside the Buy at a fixed price and select BTC or Eth from the option if you want to invest USDT/USDC/BUSD to buy the crypto at a targeted price while earning USDT before the price falls below your target price when the crypto is bought.
Input the target price, amount of investment in a stablecoin of choice, and the longest tolerance period (1 week, 1 month, or none). Click Continue.
Click or tap the Create button beside the Sell at a fixed price option if you want to earn coins to be bought before the price passes your target price. It will auto-invest in the crypto you want to sell. Enter the amount to sell and the target price. Choose the tolerance period or select zero for none and continue to invest.
Further Reading => A Complete Review of Pionex Dual Investment
How to Invest in Pionex Dual Investment and Earn More BTC
You can choose to either buy BTC at lower prices in the future than the current price. This is called buying the dip. Buying the dip earns you more BTC because of the APY interest that is also converted to BTC at the settlement date and price.
- Sign up on Pionex and verify the account. Upon verification, Pionex gives free trial funds worth $1,288. This must be invested in USDT-BTC Dual Investment, meaning you are investing in it to buy the dip. If the market price is lower than the targeted price at the settlement date, you get BTC in your account.
Free Dual Investment Trial Funds:
- You can also earn more Bitcoin with the Dual Investment by getting referral trial funds worth $12,888 per referral after earning the first $1,288 trial funds. You can still invest this in the USDT-BTC Dual Investment option and place to buy BTC dip. You earn more BTC because of the APY interest paid in BTC.
- Buy USDT through supported purchase methods – credit card, debit card, wire, bank account, etc, and invest it in the USDT/USDC/BUSD-BTC Dual Investment to buy the dip.
- You can still opt to deposit or buy BTC and invest it in the BTC-USDT/USDC/BUSD option. Your target is to sell BTC at a future higher price and get returns in USDT/USDC/BUSD. However, you can still use the latter to purchase Bitcoin at dip prices.
- You can still invest USDT/USDC/BUSD against other cryptos to earn more of the crypto by buying them at dip prices. You can then convert earned crypto to BTC using the swap feature that accrues no trading fees.
- The other alternative is to invest in cryptos to sell them at future higher prices than target prices. You get returns in USDT/USDC/BUSD and can use the latter to buy Bitcoin at dip prices using the USDT/USDC/BUSD-BTC Dual Investment option.
- To auto invest the dual investment on Pionex, click or tap Earn > Structured > Auto Orders> Auto Invest >+Invest. Click or tap the Create button beside any option as shown in the image below. The first option (Sell at a fixed price) allows you to invest USDT to buy either BTC or Eth at a future fixed price but you can also earn more USDT before the price falls below your target price.
The second option (Sell at a fixed price) lets you auto-invest dual investment to invest a coin that will be sold at a future higher-than-market price target price. However, you can earn more crypto before the market price passes your target price.
The image below shows the Auto-invest option:
Click Create and select the crypto to buy in the first option or sell in case of the second option. Set the target buying or selling price, the amount to invest (USDT in the first case and BTC/ETH in the second option), then the tolerance period. Continue to invest.
- The Covered gain under Earn -> Structured -> Manual Orders ->+Invest acts as a tiered saver for crypto investments. It enables users to invest in cryptos like BTC, ETH, XRP products, etc. with a future target price, APY payable, and duration.
If the crypto market price is less than the set price, the investor gets the crypto investment together with the APY. If the settlement price is greater or equal to the set price, the trader receives; crypto is converted to a stablecoin.
In a Covered Gain investment, the tool will look for the crypto-USDT/USDC/BUSD covered gain with the target price set/specified and delivery date. If the target price is not yet settled, the take-profit will be unsuccessful and you will receive the APY in BTC or other invested crypto.
Your initial investment continues to search for the next BTC-USDT/USDC/BUSD covered gain with the specified target price.
If the target price is reached and above at settlement, the take-profit is successful and you receive the APY interest specified on the investment and the initial investment converted to USDT/USDC/BUSD at the target price.
Dual investment settlement is paid through deposit if the crypto is converted to stablecoin. The tool cannot find the covered gain with a delivery date earlier than next week and an APY greater than 8%.
In the crypto-stablecoin buy the dip option with the covered gain product, the tool will find a stablecoin-crypto (e.g. USDT-BTC) dual investment with the specified fixed target price. If the settlement price is above the target price, the buying dip is not successful. The specified APY interest is paid in the invested stablecoin.
The initial investment in stablecoin continues to search for the next stable coin-crypto dual investment with the specified target price. The buying dip is successful when the settlement is below the specified target price. The stablecoin investment and APY interest are converted and paid in the crypto involved.
Other Ways of Earning Free BTC on Pionex
- Investing in trading bots: Pionex offers 16 free trading bots that can generate interest in BTC, other cryptos, or stablecoins if the right trading strategy and signals are applied. The bots include arbitrage, martingale, grid, leverage, reverse grid, DCA, rebalancing, BTC moon, Eth moon, Infinity grid, margin grid, TWAP, stop limit, and leveraged reverse. Also available are Trailing sell, smart trade, and trailing buy. You can also trade crypto and earn more of it using smart order types.
- Lending: Pionex allows you to invest crypto into its lending product and earn passive income. BTC earns 0.10% APY redeemable every day.
Pionex provides multiple ways through which newbies and advanced users can earn extra BTC through the Dual Investment products. There are 100+ Dual Investment product options. Each of these provides a way of either directly or indirectly.
You can earn extra BTC directly by using Dual Investment to buy the dip with stablecoins. The APY provides extra BTC.
You can indirectly earn more BTC by selling BTC for more USDT/USDC/BUSD at a future higher market price than the target price. You can then use USDT/USDC/BUSD to buy BTC at future dip prices. You realize you could also be set to buy other cryptos at dip prices and convert them to BTC.
The other alternative is to sell other cryptos on Dual Investment at a future higher stable coin value and then either swap the stablecoin for BTC or use the stablecoin to buy BTC at dip prices.
Other channels for buying dips and earning more BTC in APYs are USDT/USDC/BUSD-BTC Auto-invest Cover Gain products. These pay APY interest on top of the investment, whether the target price is reached or not.
Apart from the above, you can also earn more BTC directly or indirectly on two more products – Auto Invest Sell at a fixed price and Auto Invest Buy at a fixed price.
These allow you to earn more crypto (BTC and Eth) before the market price exceeds the invested BTC/ETH target price at a future date and earn more USDT/USDC/BUSD (which can then be used to buy BTC at dip prices or swapped with BTC) before the market price falls below the target price at a future date.