One of the ways to earn crypto on KuCoin is through their dual investment program, it can be a little confusing and you can also lose money when using it, so let me explain it so you can use it to your advantage.
You choose an asset (BTC, ETH, BNB, XRP, SOL, DOGE, LDO) that you would like to use, then you choose how long you want to “stake” your asset, then out of the options they provide you chose a target price - meaning what price you think the asset will be at when that date arrives.
When the closing date arrives, if the asset is worth more than your target price you will receive the equivalent of your starting asset in USTD plus a little (which will be worth more than what the asset was worth when you started this transaction, but less than what the asset is currently worth).
If however the closing price is lower than your target price you will receive the amount that staked and some in the asset that you chose.
For example, say I choose to enter 100 XRP into the dual investment program for 3 days, at the time of entry say XRP is at 0.50 now I select my target price for in three days from now for 0.55
Fast forward three days and it’s closing time and the price of XRP is 0.57 then I will receive around $50.50 which is 50 cents more than what the XRP was worth at the starting date, but less than the worth of 100 XRP at the current price.
If however at the closing day the price of XRP is 0.52 then I receive 101 XRP.
(They also have dual investment where you “stake” USDT and the payout could be in one of the above mentioned assets, but then it works the opposite, if closing is above target price you receive the asset and if it’s below you receive USDT).
Where you need to be careful is when the price of an asset is moving fast and your payout is in USDT, if you immediately try to buy back into your position that you were holding before, you will end up with less than the amount that you started with.
In the above example, if you take the $50.50 and buy XRP when the price is at 0.57 you will purchase about 88.5 XRP down from your 100 XRP that you started with.
Also keep in mind that the platform is making money either way, if your target price is lower than the the closing then essentially they bought your asset for cheaper then it’s currently worth, (they pay you what it was worth and keep the difference), if your target price is higher than the closing even though you receive more of the asset it’s still not as much as it’s currently worth.
Be aware that the platform decides the options for target prices which will work in their favor.
Sometimes it’s worth it to get less rewards by choosing an option that is offering less percentage but seems more likely to work in your favor.
Also know that you don’t have to buy back immediately sometimes patience pays off, wait till it cools down a bit and maybe you won’t lose as much as you thought.
I’m sorry if it was a little complicated or confusing maybe I’ll get back to this topic ti try and simplify it. In the meantime I hope it’s at least somewhat helpful.
