Binance Automated Investing is a feature that aims to facilitate your investment in cryptocurrencies in an organized and sustainable manner without the need for constant manual intervention. Automated investing uses a strategy known as "Dollar Cost Averaging" (DCA$), #DCA where cryptocurrencies are purchased at regular intervals and in fixed amounts, regardless of the market price.
Detailed explanation:
1• How it works:
You choose the cryptocurrency you want to invest in (such as Bitcoin or Ethereum).
You specify a fixed amount that you want to invest periodically (daily, weekly, monthly).
Cryptocurrencies are purchased automatically according to the schedule you set up.
2• Interest:
It helps you reduce the impact of market fluctuations, as the purchase is distributed over different time periods.
Suitable for investors who do not want to follow the market daily or worry about the timing of the investment.
3• Setup:
From the "Automatic Investing" section, you can set up the plan by choosing:
The cryptocurrency to invest.
The periodic amount to invest.
Frequency of the process (daily/weekly/monthly).
Source of funds (your account balance or payment card).
4• Cancel or modify the plan:
You can easily modify or cancel the plan at any time from the same section.
5• Result:
Over time, you get an average cost of investment, allowing you to build a strong portfolio over the long term