How to earn more BTC/ETH/XRP coins? | Pionex Dual Investment

A crypto exchange that is furnished with its own functioning crypto trading automation tools simplifies the overwhelming process of trading. Using crypto bots effectively means the workload that might take hours of tedious labor gets delegated and reduced to mere minutes of oversight per day if even that much.

Pionex is among the world’s first cryptocurrency exchanges with built-in automated trading bots; it first launched in 2019 and has since grown into a world crypto platform. Additionally, Pionex offers low trading fees and an innovative mobile app, making it an appropriate solution for investors who trade large volumes on the go. Automating your investment strategy using in-built trading bots eliminates the requirement for you to watch the market continually.

 Summary 

  • Pionex is a great choice for beginners for crypto trading with built-in trading bots. Further, the platform offers 9 different automated trading tools.
  • Pionex dual investment is a tool that is non guaranteed with an increased annualized rate of return.
  • Options are basically a type of derivative contract for the right to trade investment targets which contains a right to decide regardless of performing the contract within a period. The options trading has the following categories: Buy Option/ Call and Sell Option/ Put.
  • Pionex dual investment can be operated in either of the two modes: in Pionex dual investment manual mode and Pionex dual investment beta mode. The Pionex dual investment product includes USDT-BTC Dual Investment and BTC-USDT Dual Investment.
  • The benefits are that there is no risk of forced liquidation, versatile and easy to use, there is an increased probability of success, and compounding profits. 
  • The risk is that there is no protection against a market crash, the expected profit is capped at the strike price and high price volatility would wipe out the potential profit that can be gained from the Dual Investment Bot.

What is Pionex?

Pionex is one of the first choices of beginners among the infinite cryptocurrency exchanges available online to perform cryptocurrency trading with built-in trading bots. It offers 9 different automated trading tools. Furthermore, all the bots provided by this platform are free, but there is an exchange trading fee of 0.05% only for makers and takers, and it has an easy-to-use interface mobile application. In addition, with this platform, you get innovative liquidity engines that sum up the liquidity from Binance and Huobi. Pionex is regulated in the United States and Singapore.  

What is a Crypto Trading Bot? 

Cryptocurrency trading bots are computer programs and algorithms that are programmed to buy and sell cryptocurrencies automatically at the appropriate time with the goal of generating a profit. Crypto bots perform the functions that include analyzing and interpreting market statistics, gathering market data, interpreting it, calculating the potential market risk, and executing buying/selling cryptocurrency assets. 

Also read, Different Types of Crypto Trading Bots

What is options trading? 

Options trading is a type of derivative contract for the right to trade investment targets or specific commodities, which also acts as a right to decide regardless of performing the contract within a period. Like other derivatives, options are basically contracts that allow the traders to assume or speculate on the future price of an underlying asset. The trading option can be categorized into the following:

  • Buy Option/ Call: The term assigned to the right to buy the investment targets at the strike price.
  • Sell Option/ Put: the term is used when the right to sell the investment targets at the strike price.

The process of option trading goes in the following order:

  1. An option seller generates call and put options contracts. Every contract has an expiration date when the contract is settled and a ‘strike price.’
  2. The option seller lists the contracts on a crypto options exchange.
  3. The option buyer places an order in an exchange to whom the option seller can sell it. 

What is a Dual investment in Pionex?

Pionex dual investment is a non-guaranteed investment tool with an increased annualized rate of return. With this tool, a dual investment bot allows you to purchase or sell cryptocurrency at your desired price and date, which can yield high returning profits. It is a non-principal protected structured product. You can choose the underlying asset, investment, investment currency, and the delivery date upon buying. Your profit will be denominated in the alternate currency or investment currency depending on the given circumstances:

  • The target is reached if Settlement Price > Target Price
  • The target is not reached if Settlement Price ≤ Target Price

Your returns will be obtained in USDT if the target price is achieved, and if the target price is not achieved, in that case, you will receive it in the target currency. There is a settlement date for every product that is bought. 

Let us assume that the EUR/USD exchange rate is 1.1, and I fund 1,000 EUR into the EUR/USD trading pair. Next, when the euro increases by 1% and the value of the US dollar remains unaltered (the exchange rate becomes 1.111), that means that I can make use of the original 1,000 euros to purchase 1,111 US dollars, which is equivalent to earning 1% more US dollars.

Pionex Dual Investment
Dual investment in Pionex

a) Pionex dual investment in Manual Mode 

Dual investment is a floating earning you can make and a non-principal protected saving product. The return on this product is fixed and precise at the moment when you are buying it while the settlement currency is uncertain. When the maturity of the product reaches, the settlement currency is based on the comparison of the pegged price and settlement price at maturity. The product of dual investment includes USDT-BTC Dual Investment and BTC-USDT Dual Investment.

  • USDT-BTC Dual Investment: implies that you need to purchase the contract in USDT. Here, the settlement currency is USDT or BTC, and the specific settlement currency is based on the comparison between the pegged price and settlement price at maturity. 
  • BTC-USDT Dual Investment: implies that you need to purchase the contract in BTC. Here, the settlement currency is USDT or BTC, and the specific settlement currency is based on the comparison between the pegged price and settlement price at maturity. 

b) Pionex Dual Investment beta mode

Pionex Dual investment beta mode takes on custom mode and automatic re-investment mode on Dual investment products. The automatic re-investment mode includes daily auto re-investment and target take-profit. In order to provide its users with diverse investment needs, the following rules are opened up for the product.  

  • USDT dual investment – daily auto re-investment
  • BTC dual investment – daily auto re-investment
  • BTC covered gain – target take-profit
  • ETH covered gain – target take-profit
  • BTC buy the dip – target buying-dip
  • OL covered gain – daily auto re-investment 
B) Pionex Dual Investment Beta Mode
Pionex Dual Investment beta mode

How to invest in Dual investment?

The procedure of investing in dual investment is straightforward and easy. 

  1. Firstly, you need to open the Pionex login page in your browser, log into your account, and click on “earn” at the top centre of the page. 
  2. Choose and select the investment coin as per your wish. 
  3. Next, decide the duration of the investment. Further, check and confirm your investment details and click on “Buy.”
  4. Input your amount of investment and wait till the order expires. 
  5. Lastly, all you need to do is receive your investment along with interest. 
How To Invest In Dual Investment?
Invest in Dual investment

How to calculate the return after investing in the dual investment?

As you reach the target price, your interest income, as well as your investment, will be converted into USDT with a target price as the conversion rate.

Example 1: When you invest BTC for BTC-USDT Dual Investment

Let us assume the presence of the following values: 

  • Target price: 60,000
  • Investment Currency: BTC 
  • Delivery date: July 1, 2022 
  • ROI: 0.6%
  • APR: 31.29%

Suppose that the current time is June 24, the current BTC price is 42000, and the user selects to invest 1 BTC in Dual Investment due in the week.

On July 1, 2022 

Case 1 – If the Settlement Price of BTC on that day< Target Price of 60,000 USDT, the user will receive 0.6% of BTC, that implies, 1 * (1 + 0.6%) BTC = 1.006 BTC.

Case 2 – If the Settlement Price of BTC on that day> Target Price of 60,000 USDT, the user will receive 0.6% of USDT, that implies, 0.6% of USDT, that is, 1 * 60,000 * (1 + 0.6%) USDT = 60,360 USDT.

After the expiry of the order, the user will receive 0.6% of the income, and the only concern is the currency of the return, which is based on the BTC/USDT settlement price at the time of expiration.

Example 2: When you Invest USDT for USDT-BTC Dual Investment

Let us assume the presence of the following values: 

  • Target price: 30,000
  • Investment Currency: USDT
  • Delivery date: July 1, 2022 
  • ROI: 0.6%
  • APR: 31.29%

Suppose that the current time is June 24, and the current BTC price is 42000, and the user selects to invest 30000 USDT in Dual Investment due in the week.

On July 1, 2022 

Case 1 -: If the Settlement Price of BTC on that day< Target Price of 30,000 USDT, the user will receive 0.6% of BTC, that is, (30000/30000) * (1 + 0.6%) BTC, that is, 1.1066 BTC.

Case 2 -If the settlement price of BTC> Target Price of 30,000 USDT, the end user will get 0.6% of USDT, that is, 30,000 * (1 + 0.6%) USDT, that is, 31,800 USDT.

After the expiry of the order, the user will receive 0.6% of the income, and the only concern is the currency of the return, which is based on the BTC/USDT settlement price at the time of expiration.

Benefits and Advantages of Dual investment Bot

The various benefits of this platform are: 

  • This particular platform operates on aggregated option orders from all the various active dual investment bots in place of the users. The end product of short positions is all sufficiently hedged to do away with the risk of forced liquidation.
  • For the manual execution of a dual investment bot, you must have a clear understanding of option trading; therefore, using the Pionex dual investment bot is beneficial for most users who are looking for a straightforward way to perform this strategy because it is versatile and adjustable based on your risk appetite. 
  • Options trading is considered a highly promising strategy since the users have complete control over the probability of success by selecting different contract durations and strike prices. 
  • Dual Investment Bot allows the user to compound the profits you have earned, which implies that the more times you perform this trade, the greater would be the compounding effect.    

Pionex Dual Investment Risk and limitation 

Below you will find the risk involved in the dual investment bots so that you can make a more informed decision.

  • This particular bot does not protect in the event of a 50-80% crypto market flash crash. This happens in the case of the USDT-BTC (CSP) Dual investment Bot even after you set a far-out strike price with a large margin of safety.
  • Furthermore, BTC-USDT (CC) dual investment bot has a limitation in that the expected profit is capped at the strike price. 
  • The conclusion drawn from the limitations that are imposed is that the dual investment bot is more useful when there is less volatility in the market conditions. High price volatility would wipe out the potential profit that can be gained from the Dual Investment Bot. 

Conclusion 

Pionex is an all-in-one platform that takes care of all the needs of its users. It is a perfect platform for beginners because of its straightforward and easy-to-use interface. Pionex has acquired MSB (Money Services Business) license by FinCEN, and hence this platform is licensed with low trading fees. There are 16 trading bots offered by the platform, which allows you to securely and automatically trade currencies like Bitcoin, Ethereum, Dogecoin, and so on. The Pionex dual investment is a high passive income for users to earn more coins.

Frequently Asked Questions 

Q. What is Pionex fees? 

The transaction fee charged by this platform is 0.05% only for the maker and taker.

Q. How to set up a crypto trading bot?

Crypto trading bots are created by the following the given steps that include Listing all the exchanges you want your bot to work with, Creating accounts on the listed exchanges, Pick the type of crypto trading bot you wish to make use of, Determining the architecture of the crypto trading bot, coding, testing and lastly Deployment process. 

Q. Is Pionex bot profitable?

Pionex is among the most suited cryptocurrency exchanges for trading bots and is perfect for beginners to begin their automated trading journey.

Q. Is the Pionex bot safe?

Yes, Pionex is legit and safe. Pionex has acquired the MSB(Money Services Business) license by FinCEN. 

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Neha Varshney

Beaming with confidence and positive energy. I am a very expressive person, so I command the air in the room. I'm good at management. I am an extrovert, so I can manage a lot of people. I am an active learner and pursuing BA in Economics Hons.

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