Since Buy-the-Dip is a Dual Investment product, we recommend reading our Dual Investment guide first. This will help you understand the basics and how the product works before you invest.
What is Buy-the-Dip?
Buy-the-Dip is a dual investment product that allows you to earn high interest before successfully buying crypto at your target price. The APY can range from 10% to over 300%, depending on your chosen target price and settlement date.
When should you use Buy-the-Dip?
Trading crypto is riskier than trading stocks because the crypto market is highly volatile. Pionex’s Dual Investment products aim to help customers earn steady returns with relatively lower risk. With Buy-the-Dip, you can purchase BTC at a lower price while earning passive income. Here are three common scenarios:
Scenario 1: You have a specific target price
If you know the market well and have a clear target price for buying crypto, simply set that price and invest accordingly.
Scenario 2: You want to protect your cash from inflation, but are unsure about the market
Set your target buy price significantly below the current price. For example, If BTC is at $20,500 and you set your target at $16,000, the APY may be around 10% — enough to outpace inflation. If BTC never drops to $16,000 by settlement, you still earn yield in USDT. However, if it drops below $16,000, you will still buy BTC at $16,000.
Scenario 3: You are a long-term believer in crypto
If you believe in crypto’s long-term value, even after price drops, you can continue investing in Buy-the-Dip to lower your average entry price. You can also reinvest purchased crypto into Covered Gain at your target sell price to earn more yield while waiting for a price rebound.
How does Buy-the-dip work?
Buy-the-dip aims to help traders buy crypto at the bottom price while earning interest income. It is accomplished by setting up a target buy price and the amount you want. Based on your input, we will find products for you to subscribe to.
Suppose you would like to buy 1 BTC at 20,000 USDT, but the current price of BTC is 22,000 USDT. In this case, you can subscribe to our BTC buy-the-dip product at the strike price of 20,000 USDT. Assume you subscribed to Buy-the-Dip with a target buy price of 20,000 USDT, duration of 1 day, APY of 30%, and return at the settlement of 0.6%.
You would expect the following payoff at settlement:
Scenario 1: Price of BTC < 20,000 USDT, you get (1+0.6%) in BTC
Scenario 2: Price of BTC ≥ 20,000 USDT, you get (1+0.6%)*20000 = 20120 in USDT
In other words, at settlement, if the strike price of BTC drops below or at your target buy price, you will buy BTC with your investment and earned interest. Or, if the strike price of BTC is still higher than your target buy price, you will earn interest in USDT based on the displayed yield.
Note: APYs and returns are different with various settlement dates and strike prices, and we will provide you with different combinations for you to choose
Modes and Parameters Setting
Buy-the-Dip has two modes: Basic Mode and Pro Mode.
Basic mode
This is suitable for buying crypto at a fixed price.
Definitions：
Buying Price: The target price at which you want to buy crypto
Investment: The amount of USDT you want to invest
Lowest tolerance APY: The lowest APY you expect to earn. The strategy will filter out and skip any dual investment product with an APY lower than the submitted value.
Longest period: This is your acceptable investment period. The strategy will filter out and skip any dual investment product with a settlement date (duration) longer than the submitted value.
Rules for auto-reinvest： When you enable the Auto-reinvest feature, the product will automatically reinvest your investment and yield into a new term with the same target price once the previous term expires until you successfully buy crypto. You can also locate the auto-renewal condition based on your strategy settings by following the steps shown in the image below.
Pro mode
This is suitable for buying crypto at a drop in percentage from the current price.
Definitions：
Drop from price: How much price drop in percentage would you expect to buy crypto
Investment: the amount of USDT you want to invest
Lowest tolerance APY: The lowest APY you expect to earn. The strategy will filter out and skip any dual investment product with an APY lower than the submitted value.
Longest period: This is your acceptable investment period. The strategy will filter out and skip any dual investment product with a settlement date (duration) longer than the submitted value.
Auto-reinvest Rule: If you turn on auto-reinvest, the system automatically searches for dual investment products and selects the best fit for you. The products will have strike prices at “price at settlement of the last round *(1 - price drop in percentage)” when your subscription expires. We will reinvest your original investment and earned interest for you until you successfully purchase crypto. You can also locate the auto-renewal condition based on your strategy settings by following the steps shown in the image below.
How to invest in the Buy-the-Dip Strategy?
To get started, simply follow the tutorials for the Dual Investment strategy and create your first order today.
In APP：
Step 1: Open the Pionex app and go to [Earn] - [Structured] - [+ Invest] to access the structured products.
Step 2: Select [Buy-the-Dip] from the list of structured products. Choose the desired mode; for this tutorial, we will choose [Pro Mode]. Then select the asset you wish to buy, input the percentage value, and configure the advanced settings (optional). Finally, click [Search] to find the applicable dual investment products that match your parameters and choose your preferred dual investment product.
Step 3: Review the product details and click [Purchase]. Input the investment amount, enable “Auto re-invest” if required (optional), and click [Confirm]. Then check the box to acknowledge the risks and benefits, and finally click [Confirm] to place your Buy-the-Dip order.
On the Web：
Step 1: Log in to your Pionex account, click [Earn] in the upper menu bar, then select [Structured] - [Earning Robot].
Step 2: Select Buy-the-Dip from the list of structured products by clicking [Create the Bot]. Choose the desired mode; for this tutorial, we will select [Pro Mode]. Then choose the asset you wish to buy, input the percentage value, and configure the advanced settings (optional). Finally, click [Search] to find the applicable dual investment products that match your parameters.
Step 3: The applicable dual investment products that match your parameters will be displayed. Choose your preferred dual investment product, click the [Details] button to view the product details, and then click [BUY].
Step 4: Input the investment amount, enable “Auto-invest” if required (optional), and click [OK]. Then check the box to acknowledge the risks and benefits, and finally click [OK] to place your Buy-the-Dip order.
Benefits and Risks
Benefits:
Earn high USDT yield until your target price is reached
Buy BTC at a lower price while earning interest
Risks:
The price may continue falling after purchase
At settlement, if the market price is lower than your target, you will still buy at your set price
Buy-the-Dip FAQ
Q： What is the best time to use Buy-the-Dip?
A： You can use Buy-the-Dip when you are holding cash, want to earn yield while waiting, and are comfortable buying crypto at your target price. For example, if you believe BTC might drop to $15,000 and you’re okay purchasing it at that price, you can set up a Buy-the-Dip order with a target price of $15,000 and your preferred settlement date. At settlement:
If the current price is above $15,000, you will earn the displayed yield in USDT.
If the current price is at or below $15,000, your investment plus the earned profit (in USDT) will be used to purchase BTC at $15,000, and the BTC will be credited to your account.
Q： If I subscribe to Buy-the-dip, waiting to buy BTC at the target buy price of $20,000. However, at settlement, the price of BTC suddenly drops to $18,000. What will happen?
A： You will buy BTC at $20,000 and earn yield in BTC at the same time.
Q： Is there any risk when subscribing to Buy-the-Dip?
A： Yes — Buy-the-Dip carries the fundamental risks of investing.
Price Drop After Purchase – If your Buy-the-Dip subscription is exercised, you will purchase crypto at your target price. If the market price continues to fall after that, you bear the risk of further price decline — similar to buying crypto outright and then seeing the price drop.
Settlement Price Gap – At settlement, if the current market price is significantly lower than your target price, you also take on the risk of the price difference.
Example: You subscribe to Buy-the-Dip with a target price of $20,000 for BTC over 5 days. If, at settlement, BTC’s market price is $15,000 (well below your $20,000 target), you will still buy BTC at $20,000 using your investment plus the yield earned in USDT..
Q： When should I turn on the auto-reinvest in pro mode?
A： You might enable Auto-Reinvest when you have spare cash, want to earn extra income, and expect the market to move sideways. For example, if you set a price drop percentage of 10%, and a sudden market change causes the price to drop more than 10%, but you are still comfortable buying at that 10% lower price, Auto-Reinvest can be useful.
Example:
Current BTC price: $20,000
You expect BTC to trade between $18,000 (–10%) and $22,000 (+10%).
You subscribe to Buy-the-Dip at a 10% price drop with a reasonable settlement time.
At settlement:
If the market price (e.g., $19,000) is above your buy price, you earn the displayed yield in USDT, and your funds are automatically reinvested into another product with a 10% drop from the new market price.
If the market price is at or below your buy price (e.g., $18,000), your investment + yield will be converted into BTC at that buy price and sent to your account.
Q： What are the differences between basic mode and pro mode?
A： Different Strategies: In basic mode, we buy crypto at a fixed price; with pro mode, we buy crypto at the percentage price drop.
Different auto-reinvest rules: In basic mode, we filter and select the product with the same target buy prices for auto-reinvestment after the product expires. In pro mode, we calculate the target buy price based on the expected percentage drop and select the corresponding product for auto-reinvestment when the product expires.
Q： Other than USDT, can we use any other stablecoins to invest in the Buy-the-Dip strategy?
A： Yes, you can. Currently, Pionex supports both USDT and USDC as principal for this strategy. To switch, click the dropdown menu in the investment section (top-right corner) and select your preferred stablecoin, either USDT or USDC.
Please get in touch with Pionex Support if you have any other questions.