Navigating Uncertainty: Capitalize on the Crypto Market Conditions pt.1
Dual Currency is a short-term investment tool designed to capitalize on investment opportunities and optimize profits during market fluctuations and volatility.
Cryptocurrency prices are showing signs of life as we entered the historically bullish month of October. Prices, however, have remained flat as investors await signs of the US Federal Reserve backing down from continuous interest rate hikes to combat historic inflation.
Bitcoin and macro markets have been highly correlated since global markets began contracting at the start of 2022. Movements in crypto markets will likely continue to be governed by macroeconomic conditions in the short to mid term, and this correlation and volatility can present investment opportunities for digital currencies.
Some investment products represent suitable tools for beginner to advanced investors to capitalize on short term market fluctuations as well as sideways movements to accumulate interest or buy the crypto dip.
Dual Currency is one of them.
Dual Currency is a short-term investment tool designed to capitalize on investment opportunities and optimize profits during market fluctuations and volatility. Whether the market is bearish or bullish, Dual Currency offers a capital efficient mechanism of monetizing a market view.
It features two strategic investment options: buying or selling a certain digital asset at a desired price and future date, while earning high interest yield regardless of the market direction. At the same time, Dual Currency investments pivot on two types of digital currencies — a stablecoin at par with the US dollar (USDT or USDS), and an alternate cryptocurrency (Bitcoin or Ethereum).
Investors select the asset that will be invested (investment currency), and the asset that the user will receive their investment in (settlement currency), depending on market movements.
Let’s take a closer look at the two investment options: “Sell-High” and “Buy-Low”.
- Sell-High is ideal for investors looking either to exit a position at a target price in the future, as with a limit-order. The Sell-High position can also be used to earn high interest by investors who don’t think the market price will reach the specified target within the tenor of their investment.
- Buy-Low allows investors to accumulate an asset at low prices by “buying the dip” when the price of an asset decreases. The Buy-Low position can also be used by investors who aim to earn high interest on USD-pegged assets, and don’t feel the price of the target asset will decrease to their buy price within the tenor of their investment.
In any of the above scenarios, the investor earns attractive interest on their initial investment regardless of whether the buy or sell target prices are met.
Here is an example of the Buy-Low position:
On October 12th, the Bitcoin (BTC) market price is at $19,065.03, and an investor decided to purchase BTC on October 14th if the market price hits $19,000. For the agreement, the investor will receive an annualized return of 206.83%.
On the maturity date, the product is exercised if the BTC price is equal to or lower than the strike price of $19,000. The investor’s deposit (investment amount in USDT) will be used to buy the cryptocurrency at the target price, and the investor will earn 206.83% interest.
Result
If the price of BTC is higher than the strike price on the maturity date, the product will not be exercised, but the investor will still earn interest. The deposit and earned interest will be returned to the investor in the investment currency.
What are the advantages of Dual Currency?
High Interest Yield During Low or High Volatility
Investors are given the opportunity to earn high interest yields no matter what direction the market goes.
Hedging Strategy
When an investor subscribes to both investment options (buy-low and sell-high) at the same time, yield is generated while hedging against a downside move in the market prices.
WhaleFin Dual Currency
Dual Currency is a powerful, multi-purpose investment vehicle that facilitates high returns during up, down, and sideways markets. WhaleFin packages this somewhat complex structure in an intuitive and accessible way, making it easy to set parameters and anticipate the results of an investment with confidence.
What are the advantages of WhaleFin’s Dual Currency?
High Interest Yield
Under similar market conditions and investment options, WhaleFin offers high APR yields compared to other platforms.
Customizable
WhaleFin’s settings are flexible, offering detailed customization and clear calculations on parameters like Target Price and Tenor. Currently USDT, USDS, BTC, and ETH are available with WhaleFin’s Dual Currency product.
Investors can customize the tenor ranging from 1 to 121 days, and the minimum investment is very low at 10 USDS/0.001 BTC/0.010 ETH.
Secure
WhaleFin invests significantly in the security, safety, and privacy of its users and their assets. Assets held on WhaleFin are protected by multiple layers of security:
- Holder of the gold standard of security. WhaleFin is SOC 2 Type II- certified by Deloitte.
- Industry-leading asset custody. WhaleFin works with world-leading partners like Fireblocks to provide institutional-grade custody and protection for the assets of its users.
- Up to $100 million insurance coverage on digital asset wallets. Amber Group, the company behind WhaleFin app, has comprehensive insurance coverage protecting its digital asset wallets, including direct insurance policy, indirect coverage, and insurance-backed Theft Protection, which are subject to the terms, conditions, and exclusions under the relevant insurance policies and agreements.
What are the risks of Dual Currency?
The principal risk associated with Dual Currency as with many investment products is volatility of the market price on the expiry date since the settlement currency can either be in USDS/USDT or the target crypto asset (BTC or ETH).
Users have temporarily reduced liquidity since funds are locked until the settlement date, meaning they could potentially miss out on buying or selling at a more profitable price while their assets are invested in Dual Currency.
Remember to do your own research to understand the implications of investing using Dual Currency.
The Dual Currency Product is not principal protected. You may lose a part or the entirety of your investment principal due to market conditions. Past performance is not an indication of future returns.
About WhaleFin by Amber Group
WhaleFin, powered by Amber Group, is an all-in-one digital asset platform designed to empower you to diversify, manage, and grow your wealth digitally in a secure manner. On WhaleFin, you can buy, sell, trade, and invest in crypto with ease.
Download the app here.
Amber Group is a leading digital asset platform operating globally with a presence in Asia, Europe, and the Americas. We provide a full range of digital asset services spanning investing, financing, trading, and spending, backed by some of the best investors across the world such as Sequoia Capital, Temasek, and Tiger Global Management.
For more on WhaleFin’s announcements and news, please follow us on social media:
For support and assistance, please contact us at service@whalefin.com
The availability of WhaleFin’s products and services is subject to jurisdictional limitations and regulatory requirements.
This material is strictly for information purposes only, and does not constitute or shall not be considered as, an offer, solicitation, or recommendation, to deal in any products. The information provided is not intended to provide a sufficient basis on which to make an investment decision. It is intended only to provide observations and views of certain personnel and has not been reviewed by any regulators elsewhere, which may be different from, or inconsistent with, the observations and views of Amber Group.
Amber Group assumes no obligation to update or otherwise revise this material, Amber Group does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions or changes or from the use of information presented in this material. Contents in any third-party sources (if any) in this material are completely beyond the control of Amber Group. As such, Amber Group shall not be held responsible for the accuracy, completeness and legality of the contents of such third-party contents. Any reference to third-party contents does not imply an endorsement, representation or warranty by Amber Group. No liability will be accepted for any loss or damage arising from or in reliance upon the contents of this material or these independent third-party contents provided here.
This material is not directed to or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Amber Group to any registration or licensing requirement within such jurisdiction.
This material does not purport to contain all of the information that an interested party may desire and, in fact, provides only a limited view. Any headings are for the convenience of reference only and shall not be deemed to modify or influence the interpretation of the information contained.
All rights reserved. This material is not to be reproduced, in whole or part, without the written consent of Amber Group.
