Binance Auto Invest Review – Is Binance Auto Trading Worth It?
Felix Küster
What you'll learn 👉
BINANCE AUTO INVEST OVERVIEW
In the ever-evolving world of cryptocurrency, Binance has introduced a new feature that is garnering attention – Binance Auto Invest.
This innovative tool is designed to simplify the investment process, making it more accessible and manageable for users of all experience levels. But what exactly is Auto Invest in Binance, and is it good?
In this Binance Auto Invest review, we delve into the specifics of this feature, exploring its benefits and potential drawbacks. We’ll also discuss the Binance Auto-Invest hourly plan, a unique aspect of this tool that sets it apart from other investment options.
Whether you’re a seasoned investor or a newcomer to the crypto scene, understanding the ins and outs of Binance’s Auto Invest feature is crucial. So, is Auto Invest in Binance legit? Let’s find out.
ere’s a summarized table of the content from the URL:
| Summary | |
|---|---|
| 💰 | Binance Auto Invest is an automatic investment program launched in 2021 that allows users to earn passive income with little or no stress. It uses a Dollar-cost averaging investment strategy. |
| 📈 | The program currently allows users to purchase BTC, ETH, or BNB on a daily, weekly, bi-weekly, or monthly basis. These coins can only be bought with USDT or BUSD. |
| 🏦 | Once a purchase is made, the purchased coins are transferred to your flexible savings account, ensuring that your bought crypto continues to generate interest. |
| 👍 | Benefits of Auto-Invest include effective risk management, good market timing, continued earnings through flexible savings, and easy management. |
| 👎 | Drawbacks include sometimes getting the timing wrong, the risk of buying a coin that will keep going down (catching a falling knife), and your money being idle, gathering ‘dust’. |
| 📝 | To start earning with Binance Auto-Invest, you need to create a Binance account, complete verification, select the coin you want to invest in, create a plan, and confirm. |
| ❓ | Binance Auto-Invest allows users to set up automatic recurring buys either daily, weekly, bi-weekly, or monthly. This service is currently available for investments in BTC, ETH, and BNB. |
WHAT IS BINANCE AUTO-INVEST
Binance auto-invest is an automatic investment program that allows Binance users to earn passive income with little or no stress. It was launched on November 23, 2021, and runs on the Dollar-cost averaging investment strategy.
This strategy involves buying a specific amount of crypto at predetermined intervals regardless of the price. It is a well-known, less risky way of investing in cryptocurrencies over a protracted period.
Thus, the program allows users to purchase BTC, ETH, or BNB on a daily, weekly, bi-weekly, or monthly basis. For now, those are the only three coins that can be purchased with the program, and they can only be bought with USDT or BUSD. However, considering that the program is still in its infancy and that Binance keeps upgrading its product suite, it is safe to say that more options will be introduced as time goes on.
Once a purchase is made at the selected time interval, the purchased coins are transferred to your flexible savings account. This also ensures that your bought crypto continues to generate interest for you even without your supervision.
BENEFITS OF AUTO-INVEST
Effective Risk Management Strategy
Dollar-cost averaging has proven to be one of the best ways to manage the risk of cryptocurrency trading over the years. It works so well because it eliminates emotions from the trading process and protects users from extreme crypto market reactions. This is something each crypto trader likes to see.
Good Market Timing
Timing the crypto market well is a delicate process. No one seems to have an almighty formula on how to do it, especially as the market seems to develop a mind of its own at times. With Binance Auto-invest, this process is taken care of automatically.
Continued Earnings through Flexible Savings
Your purchased coins are deposited into your flexible savings account, ensuring that you keep earning on your crypto assets even after purchase.
Easy to Manage: You can easily edit, pause, or unpause the program whenever you like.
DRAWBACKS OF AUTO-INVEST
Sometimes, it gets the timing wrong is mainly because the market seems to rise upwards in the long term. Therefore, if you had invested a considerable sum of money in the cryptocurrency of your choice instead of dollar-cost averaging, it is more likely to be profitable in the long run.
For example, if you purchased BTC with 100 dollars when it first crossed $1 on February 9, 2011, you would have 100 BTC, which would currently be worth about five million dollars at the current price. Meanwhile, if you had used that same amount to purchase BTC over ten years, buying with ten dollars every day, you would not have up to half that number of BTC.
You could catch a falling knife: Catching a falling knife in the crypto investments world simply means buying a coin that will keep going down. If for some reason, a coin has lost its footing and is getting massively dumped, you could keep buying all the dumps and eventually end up as a bagholder(an owner of a lot of coins with negligible value).
Your money would be idle, gathering ‘dust’: Fiat tends to lose its purchasing power over time due to inflation.
HOW TO START EARNING WITH BINANCE AUTO-INVEST
The first step towards this would be creating a new Binance account and completing the required verification procedures. You can also download the mobile application for easier navigation. Once that is done, follow the outlined steps below:
- Log into your account and click on Finance at the top of the website. If you’re using the mobile application, open the app and click on services on the front page
- From the Finance tab, you will be introduced to a number of finance products. Click ‘Auto-invest.’
- Here, you will see the coins available under this subscription. For now, only three are available, namely BTC, ETH, and BNB. The Auto-invest page also shows how much you would have gained(or lost) if you had used Auto-invest for a stipulated timeframe.
- On the Auto-invest page, select the coin you want to invest in and click ‘Create a plan.’
- A window pops up requiring you to enter the number of dollars you want to invest at your selected interval. The minimum amount you can enter is 10 units of either USDT or BUSD.
- Select your recurring cycle. It could be daily, weekly, bi-weekly, or monthly. Select the repeat time or date.
- Lastly, select if your flexible savings balance should be used when your spot balance is insufficient.
- Review and click ‘Confirm.’
You can view and manage your Auto-invest plans under ‘My Auto-invest plans’ under the Binance savings tab.
FREQUENTLY ASKED QUESTIONS
Read also:
- How to Stake Coins on Binance?
- Binance Tax Calculators
- Binance Crypto Debit Card Review
- Binance Alternatives & Competitors
- How Do Binance Fixed & Flexible Savings Work?
