Bybit’s Dual Asset feature is an innovative and highly potential structured product that can not only help investors in maximizing their returns but also give them the peace of mind when market is experiencing low volatility. Who wouldn’t want to make profits daily without the infamous “stress” of trading? 

Don’t worry if you are new to Dual Asset and Bybit structured products, because in this guide to Bybit’s Dual Asset feature, we are covering everything. Read on to find out what dual asset is, how it works, how to use and who can benefit from it. 

 

What is Bybit Dual Asset?

 

The dual asset feature on Bybit lets you make money irrespective of how the market is behaving. With Bybit’s Dual Asset feature, you can make profits even when the market is going down. 

Dual Asset is an advanced trading feature that lets you earn higher returns in a short period. In short, by using this trading feature, you can make profits and earn from market volatility while providing short-term deposit of 1, 3 or 5 days. The main idea here is simple; predict the direction of a cryptocurrency’s value within a certain period and deposit some of your crypto to lock in the yield depending upon your prediction. When that period ends, you will get your deposited crypto plus the yield back. 

The reason it is called a ‘dual asset’ is because you are investing in a pair of assets, a stablecoin and a regular crypto. Let’s look at a quick example with the ATOM/USDT pair to understand this well. 

There are two scenarios that can happen:

1. If you think ATOM’s price will increase, you sell when it does and receive USDT and your yield. However, if it does not increase, you still get your deposit back with the yield. 
2. If you think ATOM’s price will decrease, you buy when it does and receive USDT and your yield. However, if it does not decrease, you still get your deposit plus the yield. 

Take a look at the table below.

Deposit in crypto	Movement of the market	Earning
USDT	Up	USDT+ Yield
USDT	Down	ATOM+ Yield
ATOM	Up	USDT+ Yield
ATOM	Down	ATOM+ Yield

The important thing to note when planning your strategy is that there are two important prices:

• Benchmark Price: The price of the assets when you are starting the plan.
• Settlement Price: The price of the assets when you are closing the plan. 

Currently, Bybit offers dual asset investing in 21 currency pairs including BTC, ETH, AVAX and BIT. Bybit lets you lock in your crypto deposits for 1, 3 or 5 days and earn profits in the short term. Dual Asset allows investors to potentially earn higher yields by capitalizing on the price movements and volatility in the cryptocurrency market. The product is designed to provide returns, depending on market conditions at the time of maturity. Choose your own type of cryptocurrency you want to deposit, predict its movement, deposit the crypto and enjoy the yield. This is basically Bybit Dual Asset’s Buy Low and Sell High. For buy low, you can use stablecoin (USDT) and for the sell high you can use crypto assets such as (BTC, ETH). On the closing date (also known as the settlement date), you will receive your returns depending upon the movement of the market). 

Now that you have learnt how dual asset works, let’s see if you are someone who can invest in dual assets.

 

Why Should You Invest in Bybit’s Dual Asset? 

While Bybit has provided the dual asset trading tool for investors to gain profits, it is important to see if this is ideal for you. Dual Asset can be provide the following advantages:

1. It allows you to make profits even when the market does not perform well. 
2. It takes only 5 minutes to set up and user can use auto-reinvest feature to automatically re-subscribe to a plan on the settlement date. (The auto-reinvest feature will only work on the same token and target price). 
3. Users can invest in a very small amount such as $10 and earn more than 500% APY. 
4. Since it is a short time investment, traders can cash out in 5 days or less. 
5. Setting up dual asset is hassle-free and offers a wide range of coins to choose from. 

So if you are an experienced investor who wants to enhance their portfolio returns, or a long-hodler, a yield seeker or an individual who is comfortable in playing with market movements, Dual Asset might be the perfect trading tool for you. Now, let’s see the steps of using Bybit’s Dual Asset. 

 

How to Setup and Use Dual Asset on Bybit

It is extremely easy to set up Bybit’s Dual Asset feature and will take you less than five minutes in total. To get started with Dual Asset on Bybit, follow these steps:

1. Log in to Your Bybit Account: Ensure you have a registered and verified Bybit account.
2. Navigate to Earn: On the main dashboard, go to the 'Earn' section and then click on ‘Bybit Structured Products’. 
   
3. Select Dual Asset: Within the Earn section, after clicking on 'Structured Products,' select 'Dual Asset.'
   
4. Choose Your Investment Pair: Pick the product type and trading currency pair you wish to invest in (e.g., BTC/USDT). Determine the target price and investment period here as well. Click on ‘Select’ to proceed.
   
5. Set Investment Duration: Enter the amount you want to invest and select the investment period. Click on ‘Order Now’ once all your information is checked and verified. 
   
6. Review and Confirm: Carefully review the terms, potential yield, and associated risks before confirming your investment.
   Please note once the order is placed it cannot be canceled. Review the data carefully. Dual Asset is a profitable trading feature, yet it is not completely risk-free.

 

What are the Risk Associated with Dual Asset? 

Here are the risks that you might want to keep in mind before investing in dual asset.

• Due to the unpredictable and volatile nature of crypto market, there is always an uncertainty in knowing which coin you will end up with at the settlement date. This means you might end up with either the stablecoin or regular crypto, depending on the market movement. 
• Market unpredictability can make your assets value fluctuate widely, as a result, your returns cannot be guaranteed. 
• Once you subscribe to a plan, it cannot be canceled or altered. Your assets will be locked until the settlement date. It is important that you don’t need to access the funds before the settlement date. 
• If the market price moves significantly away from your Target Price, you might miss out on the chance to buy or sell at a more favourable price. For example, if you expected the price to rise but it falls instead, you won’t benefit from the rise you predicted.
• The trade will happen on the price at the settlement date, not during the plan. Your final return will be determined by the price at the specific time regardless of the upward trend during that happened earlier. 

 

Conclusion

The Bybit Dual Asset feature provides the opportunity to generate a passive income in low-volatile market conditions without actively trading. It does not come without any risks, as the user is still dependent on the price direction of the asset. However, Whaleportal PRO charts could help in making better decisions when it comes to Bybit Structured Products like Dual Asset, as Whaleportal charts are mainly focused on the shorter-term timeframes and so is Dual Asset.