Automatic investment on the Binance platform (Binance Auto-Invest) is a tool that allows users to purchase digital currencies periodically and regularly according to a specified schedule, without the need for continuous manual intervention. This system relies on a "dollar-cost averaging" (DCA) strategy, where a fixed amount is invested at specified time intervals, helping to reduce the impact of market volatility on your investments.
How automatic investment works:
1. Choose digital assets: You can choose a single digital currency like Bitcoin (BTC) or Ethereum (ETH), or create a plan for an investment portfolio that includes several digital currencies.
2. Specify the investment amount: You determine the amount you want to invest in each cycle (e.g., $50).
3. Determine the schedule: You choose the frequency of investment, whether daily, weekly, bi-weekly, or monthly.
4. Choose the funding source: You can use your balance in the spot wallet or other linked wallets.
5. Execute the plan automatically: After setting up the plan, Binance will automatically purchase the appropriate amount of digital currencies based on the selected settings.
Main advantages:
Reduce the impact of market volatility: Through the DCA strategy, investments are spread over different time intervals, reducing the risks of price fluctuations.
Flexibility: You can modify or stop the automatic investment plan at any time, giving you complete control over your investments.
Comfort and ease: Once the plan is set up, operations are executed automatically without the need for constant market monitoring.
Types of automatic investment plans:
Single token plan: Targets a single digital currency.
Investment portfolio plan: Includes a selection of digital currencies, allowing for investment diversification.
Index-linked plan: Allows you to invest in a set of digital currencies that make up a specific index, with the investment portfolio being rebalanced monthly to reflect changes in the index.
How to get started:
1. Log in to your Binance account.
2. Go to the automatic investment section.
3. Choose the type of plan that suits you (single token, investment portfolio, or index-linked plan).
4. Specify the digital assets, amount, and schedule.
5. Confirm the plan, and Binance will begin executing purchases automatically according to the settings you specified.
