Binance Auto-Invest Tutorial: How to Earn with Auto-Invest?
Do You Need Binance Auto Trading? A Review of Binance’s Automated Investment Platform
Introduction of Binance Auto-Invest
If you’re familiar with cryptocurrency, you know about Binance. Since its launch in 2017, it has been one of the most prominent cryptocurrency exchanges in terms of trading volume. During 2021, its 28.6 million users generated a total trading volume of 76 billion USD. Really, that’s something to behold!
Although I’m sure you already know a lot about Binance and other cryptocurrency exchanges, this review is not really about them. The auto-invest program is the most recent addition to Binance’s suite of financial offerings. Simply put, what is it? Is it feasible for you to use? See what happens next.
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Binance Auto-Invest, Explained
Users of Binance can make passive investments with minimal effort thanks to Binance’s auto-invest feature. The program began operations on November 23, 2021, and uses a dollar-cost-averaging method of investing.
In this method, you’ll acquire a set amount of cryptocurrency at regular intervals, independent of the market price. It’s a popular strategy for investing in cryptocurrencies over the long term that reduces risk.
Consequently, the app enables users to make consistent BTC, ETH, or BNB purchases on a daily, weekly, biweekly, or monthly basis. The application currently only supports the purchase of these three currencies with either USDT or BUSD. Since the initiative is still in its infancy and Binance is constantly improving its offerings, it is reasonable to expect new features to be added in the future.
The coins you buy will be automatically deposited into your savings account at the end of the predetermined time period. Thus, you may rest assured that the cryptocurrency you have purchased will continue to earn interest for you even while you are not actively monitoring it.
Strategic Methods for Handling Risk
To reduce the potential for loss when trading cryptocurrencies, dollar-cost-averaging has proven to be an effective strategy. It’s effective because it shields traders from the most dramatic movements in the cryptocurrency market, and traders may trade without worrying about their own feelings. Every cryptocurrency investor would be pleased to see this.
Superior Market Timing
Coinciding with the peak of the cryptocurrency market is a tricky procedure. Since the market often seems to take on a life of its own, no one seems to have a foolproof strategy for doing so. Binance Auto-invest takes care of everything mechanically for you.
Continued Income through Adaptable Savings
After making a purchase, your coins will be placed into your savings account, where they will continue to accrue interest even after the purchase has been made.
Simple to Control
The software can be stopped, started, and paused whenever it’s most convenient for you.
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Since the market generally moves in an upward direction over the long term, the timing can be off at times. In contrast to dollar-cost-averaging, making a large initial investment in a cryptocurrency has a higher probability of yielding long-term profits.
100 Bitcoins bought for $100 on February 9, 2011, when Bitcoin’s price first surpassed $1, would be worth nearly $5 million at today’s exchange rate. If instead you spent $10 every day for ten years to get the same quantity of Bitcoins, however, you would not even have half as many Bitcoins.
It’s possible to “catch a falling knife,” or invest in a cryptocurrency that is expected to continue declining in value. A coin may have lost its value for whatever reason, and if it is being dropped heavily, you may wind up as a bagholder if you keep buying the dumps (an owner of a lot of coins with negligible value).
Your funds would be sitting in a savings account earning “dust” as inflation erodes their value.
How to Earn with Binance Auto-Invest
Creating a new Binance account and completing the necessary verification steps would be the initial step towards achieving this goal. Additionally, you can download the smartphone application to facilitate navigation. Once that is accomplished, proceed with the subsequent steps:
- Log into your account and select Finance from the menu at the top of the page. If you are using the mobile app, launch the app and select Services on the home screen.
- On the Finance tab, you will find an assortment of financial items. Click “Auto-invest.”
- Here, you can view the available coins for this subscription. Currently, there are just three available cryptocurrencies: BTC, ETH, and BNB. Additionally, the Auto-invest page displays how much you would have gained (or lost) if you had used Auto-invest for a specified time period.
- On the Auto-invest page, choose the cryptocurrency you wish to invest in and click ‘Create a plan.’
- A window prompts you to input the amount of dollars you wish to invest at the chosen period. The least amount that can be entered is 10 USDT or BUSD.
- Choose your repeating cycle. The frequency may be daily, weekly, biweekly, or monthly. Choose the repetition date or time.
- Finally, choose whether your flexible savings balance will be utilized when your spot balance is insufficient.
- Review and click “Confirm”
You can view and manage your Auto-investment plans in ‘My Auto-investment plans’ under the savings tab on Binance.
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