Binance Black Friday? Platform offers Discount Buy for major tokens

Binance has launched a new product, the Discount Buy, which allows users to buy crypto at prices lower than the current market price and earn APR rewards. How does it work?

According to the recent notice on the platform’s page, Discount Buy is a product that supports yield and provides users the opportunity to purchase major tokens like Bitcoin (BTC) and Ethereum (ETH) as well as other assets at lower prices compared to the current market ones.

It implements a system that enables users to use “target buy” in order to purchase crypto below the current market prices. After subscribing to Discount Buy, users can either accumulate crypto at the chosen target buy price they have set prior to the purchase or they can instead earn yield in return.

Basically, what this means is either users can buy crypto at “discounted prices” using target buy. If the targeted price doesn’t occur, then users can get the equivalent of “cash-back rewards” by earning some passive yield on tokens they wanted to buy at lower prices.

How Binance users can make use of Discount Buy

Users who subscribe to Discount Buy have two options: either purchase crypto at a discounted rate in the future or earn fixed annualized rewards if market prices rise. The product appeals to those looking for a strategic entry into the market without committing to current prices.

Before subscribing to Discount Buy, users must first select one of three key parameters: Target Buy Price, Settlement Price, Knockout Price, and the Settlement Date.

The Target Buy Price is typically lower than the current market price, while the Knockout Price is the price at which the user will no longer choose to buy the crypto asset they had their sights on. The Settlement Price is the average price during a 30-minute window on the Settlement Date, which determines the final outcome.

What happens on the Binance settlement date?

By the time the deadline of your Binance Discount Buy rolls around, there are a few outcomes that could occur. Based on the Settlement Price, your funds will either buy crypto, earn rewards, or a mix of both.

• If the settlement price set by the user is less than or equal to the target buy price, then the user will be able to use up 100% of their investment into buying crypto at the set target buy price.
• If it’s between the Target and Knockout Price, half the user’s funds will be used to buy the crypto asset. Meanwhile, the other half is returned in stablecoins.
• If it’s at or above the Knockout Price, the user does not purchase the crypto. Instead they will receive their investment back in full alongside additional APR rewards.