Binance Auto-Invest vs Recurring Buy
- Even seasoned investors use the strategy of making regular investments.
- Consistent investing can help your wealth develop over time.
- Binance offers two tools—Recurring Buy and Auto-Invest—to facilitate regular cryptocurrency investments.
- Learn how to make the most of your cryptocurrency investments with Binance’s recurrent investing features.
Even seasoned traders may find it difficult to weather the choppy waters of the cryptocurrency market. “Time in the market” is a common investment strategy used to mitigate the effects of market fluctuations. In this article, you’ll learn about the how and why of using a recurrent investment strategy to expand your crypto holdings.
The volatility of the cryptocurrency market makes it challenging to “time the market” and determine the best times to enter and leave deals in order to maximize profits. Many investors prefer “time in the market,” or a strategy of regular investment, to mitigate the effects of market volatility and relieve the burden of trying to time the market.
Binance’s Recurring Buy and Auto-Invest features make it easy to implement a systematic approach to portfolio management based on periodic investments. Learn the distinction between the two, how to maximize your returns, and how to launch a systematic investment strategy on Binance by reading on.
Recurring Investment, Explained
The term “recurring investment” describes a method of investing money on a regular basis, typically automatically. It uses the DCA method of investing in which one invests modest amounts frequently in order to develop a portfolio. Both conventional and cryptocurrency investors can benefit from this strategy, which offers the chance to buy more assets at a lower average cost than would be possible with a single large purchase.
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Advantages Of Recurring Investment
Although it’s a basic concept, regular investing has many advantages over one-time investments. The three main benefits of regular investment are as follows.
1. Steady portfolio expansion
The regular inflow of funds into your cryptocurrency account is ensured through the use of recurring investments. Revenue and token value may increase for crypto projects in tandem with market growth. If you invest with a long-term horizon, you can steadily amass assets and avoid missing out on their appreciation.
2. Better handled risks
The impact and hazards posed by the fluctuating cryptocurrency market can be better managed with a regular investing plan. Spreading your investments out over time protects you from putting all your money in one place and evens out the market’s fluctuations. Because your investments are divided up into monthly portions, you can invest within your monthly budget and adjust your investment amount up or down depending on your financial circumstances.
3. Investing with greater discipline
Everyone understands that trading on impulse can be disastrous for their cryptocurrency holdings. For instance, investors who are feeling very nervous about the market can sell on impulse or lose out on price drops. By setting the investment amount and time frame months in advance, recurrent investments allow us to reduce the emotional involvement in our financial decisions. Last but not least, regular crypto investments help you maintain your investment discipline through rising and falling markets.
You may automate your crypto investments and get passive income with the help of Binance Earn’s Auto-Invest tool. Auto-Invest plans, in contrast to Recurring Buy plans, restrict recurring crypto purchases to USDT and BUSD stablecoins. Invest in stablecoins with fiat currency so that your portfolio can automatically grow. Learn more about Auto-Invest by clicking here!
Automatic Investing Or Recurring Purchases?
You can begin investing on a regular schedule using both Recurring Buy and Auto-Invest, but they are not identical in their offerings. To help you decide whether investment strategy is right for you, we’ve outlined the key distinctions below.
- DCA directly by using Recurring Buy to acquire cryptocurrency.
- 50 plus digital currencies supported
- Weekly, biweekly, and monthly purchases are available.
- Numerous Earn items are available for subscription using Recurring Buy-purchased crypto.
- Directly purchase DCA using stablecoins from Spot Wallet or Flexible Savings Balance.
- 10 or more cryptocurrency supported
- Daily, weekly, biweekly, or monthly purchases are permitted.
- Purchasing crypto using Auto-Invest To produce passive income, it is automatically transferred into Flexible Savings.
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The most valuable resource one may possess when making regular investments is time. If you’re new to Binance, you can get started quickly and easily by setting up an Auto-Invest or Recurring Buy plan to invest in cryptocurrency on a regular basis.
Need to step up your game with your automatic investment plan? If you’re looking to increase your long-term returns, you should check out the additional investing options that Binance Earn has to offer.
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