BitOffer institute: Bitcoin dual currency, without worry about ups and downs

[Hugo Barbosa]

To the general public, mostly, coinage investors seem to be short-term speculative traders, trading spot or futures contracts with leverage to make large profits at the risk of exploding positions. However, in addition to short-term speculative traders, there still some long-term investors and the stable earnings robust investor. Normally, miners and the massive investors don't care about short-term fluctuations of the market, but the long-term and sell it out at the higher spot. Meanwhile, the stable income investors are the group of risk-averse, they prefer the steady yield.



For these two types of investors, the market lacks an investment that could resist the risk of volatility and at the same time bring certain returns. The dual currency emerged as the times require. Different from the existing interest-bearing deposit and currency financing, dual-currency determines the income settlement method based on the "pegged price". Dual-currency financing can gain value from one of the two digital currencies.

Taking BTC/USDT dual currency which recently launched by BitOffer as an example, it is assumed that the pegged price is 9000USDT. Within a fixed investment cycle, the investor can obtain a fixed 5% return rate. If the price of bitcoin rises beyond the pegged price of 9000USDT at maturity, the principal and interest will be settled by USDT. If the price of bitcoin at maturity does not exceed 9000USDT, the principal and interest shall be settled by BTC. From the investor's point of view, whether the due currency price is above the fixed price, the investment results are all earned, the only different part is the earned currency.

Thus, can dual currency really break even? This is a matter of concern to many investors, Lucian chief analyst of BitOffer exchange believe that the dual-currency is actually a non-principal protected investment product when we talk about break-even, is that you have always been able to get double money in one currency appreciation. We talk about non-principal protected, is when there exists a critical value for money as if you buy dual-currency and the currency price is P, the established revenues by 5%, and the currency fell upon the expiry of more than P/(1 + 5%), the value less than the market price. However, this kind of situation is less except during extreme prices.

How to realize dual currency to maximize income? This is related to the fluctuations of the standard currency when the standard currency is in a stable bull market, investors can choose to link the high price, high yield, and longer cycle of dual-currency. Because in this market, the price of the due currency can usually exceed the link price, to achieve the increase of the standard currency. In the volatile market, the maturity of the currency price has the possibility of a callback, choose low peg price, slightly lower yield, and a shorter period of dual-currency finance, will easier to achieve gains.



Dual-currency is very suitable for stable investors who are averse to fluctuations. If such investors only hold the currency, it is difficult for them to get extra income in the current volatile market. Dual-currency finance can ensure the growth of investors' accounts at the given rate of return.

BitOffer as the largest digital currency derivatives trading platform, committed to providing investors with a richer, more appropriate investment category, the pioneering BTC, ETH, BCH, BSV various mainstream currency options, day trading user must, recently launch BCT/USDT dual-currency money, for investors in an uncertain market environment, provide deterministic appreciation, fearless and double benefits.

Sign up and enter the referral ID 007RTX to get $50.
https://www.bitoffer.com/en

[Michael.sol]

Already I used bitoffer website from longtime because they offer a good service to its users . bitoffer is really a trusted platform in market from longtime . Thanks for giving a update about it .

[Cici Lee]

Already I used bitoffer website from longtime because they offer a good service to its users . bitoffer is really a trusted platform in market from longtime . Thanks for giving a update about it .

Then you could try BitOffer's new product Dual Currency

[Hugo Barbosa]

Let's take a look at how the Dual Currency - USDT Product works:

Here we have a product with the parameters as follows:

Linked Price: 8,000

Expiry Date: 10-Apr-2020

Yield: 5%

Investment Currency: USDT

On 06-Apr-2020, John bought 10,000 USDT notional of the above product.

On 10-Apr-2020

If BTC rallies between April 6 and April 10, and the Settlement Price is above 8,000 USD, John receives his original investment + 5% yield in USD. Therefore, he receives 10,000 + 5%*10,000 = 10,500 USDT.

If BTC weakens against USDT between April 6 and April 10 and the Settlement Price is at or below 8,000 USD, John receives his original investment and 5% return in BTC. Therefore, he gets 10,000/8,000 + 10,000/8,000*5% = 1.3125 BTC.

Simply put, it is guaranteed that John will get a 5% yield on the expiry date. The only uncertainty is whether he will receive it in BTC or USDT, depending on where BTC/USD stands on the expiry date.

Even the Dual Currency Financial Product is an investment that brings investors a floating return, but we can clearly see that in the example that even the settlement price is less than the Linked price, we can still get BTC with the same yield.

In the short-term, we may lose money from the bitcoin price drops. However, in the long-term, since we get more Bitcoin at that moment, our assets will finally become much more valuable. (Why?: Bitcoin is the asset that owns the best performance in the past 10 years)