How to Use Dual Currency to Sell Bitcoin — Binance Edition

The dual currency system varies among different platforms, and the details of these differences can be quite extensive. So, I will introduce how to invest in $BTC through dual currency on #Binance.

First, Binance's dual currency does not settle on weekends, meaning there will be no settlements during the weekend. The settlement time is also at 4 PM. You can see that I placed my order at 2:41 AM before going to sleep, and it was actually executed at 8 AM this morning. However, I will only be able to receive my BTC on February 9 (Monday) at 4 PM. If I do not buy it, I will receive USDT instead.

Binance's dual currency can also be used for high selling and low buying. So, can we use dual currency for arbitrage trading?

The answer is yes, but to engage in this type of dual currency arbitrage trading, you must have both USDT and Bitcoin at the same time. High selling uses $BTC. For example, if I currently have one BTC that I bought at $63,000 and I want to sell it at $70,000, but I feel that placing a limit order has no interest, I can choose to high sell and place an order.

If I place an order to sell one Bitcoin at $70,000, it will "settle" at 4 PM on February 9. If the price of BTC is equal to or higher than $70,000 at that time, I will receive $70,245 in USDT. If the price of BTC remains below $70,000 before the settlement time, I will receive 1.0035 BTC.

So, it is clear that if I intend to place a sell order at $70,000, the high sell from dual currency will yield me an interest income of 245 USDT (executed) or 0.0035 BTC (not executed).

Of course, friends may also notice that if tonight Americans suddenly go on a buying spree, pushing the price of BTC to $80,000 or even higher, but I still want to sell my BTC at $70,000, the dual currency order cannot be canceled after placing it, and you will have to bear the consequences of your judgment.

Therefore, dual currency can indeed bring additional earnings compared to regular order books, but it sacrifices flexibility. Buying or selling is the same, and using dual currency for hedging will be slower. If the transactions do not match in order, you need to have both USDT and BTC available simultaneously, which is slightly more complex than contract hedging.

Some may say that if I originally wanted to sell at $100,000, can I just place an order at $100,000 and wait? The answer is no. I checked the highest dual currency order price on Binance, which is $90,000, and it requires waiting 77 days for settlement. The other two dates of 112 days and 140 days also did not exceed $90,000.

This also indicates that you cannot just place an order at any price you want at any time; you need to look at the "schedule" released by the exchange. Only orders within the schedule can be placed, and this applies to both buying and selling.

Of course, if you want to sell at $90,000 and don't mind waiting 77 days, then using dual currency to place an order will yield higher returns. If it reaches $90,000 before settlement, you will receive $90,729, with the $729 being your earnings for the 77 days. If it does not reach this price, you will receive 1.0081 BTC, with the 0.0081 BTC being your earnings for the 77 days.

So for me personally, dual currency is a very good short-term tool. If I consider using it long-term, it should be for buying at low prices, mainly for financial management. If it can really be realized, I can accept that price.

For example, if I do not believe that BTC will drop below $48,500 during this cycle, I will place $1 million at the $48,500 position, with a settlement time of 49 days. If it indeed does not reach $48,500 at the time of settlement, I will receive $1.01 million in USDT, with the $10,000 being my interest income for these 49 days, approximately 7.74%. Although this is not a lot, it is definitely higher than the exchange's own financial products, roughly double the income of U.S. Treasury bonds.

If I predict incorrectly and BTC does drop below $48,500, I will receive 20.8247 BTC. I think this price should be acceptable; if I buy, then I buy.

Using dual currency with this mindset will be more comfortable.

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