Auto-invest and recurring buys are both DCA strategies. DCA means Dollar-Cost Averaging. DCA is when you buy a fixed amount of crypto at regular times. Binance offers these services to all its users.
This DCA strategy on Binance saves time, and you don’t have to time the market. It also reduces the impact of market volatility. So, let’s have a look at how you can set this up.
Dollar-cost averaging (DCA) is a less volatile investment strategy that involves buying crypto regularly in smaller increments.
Learn more about DCA here 👇 https://t.co/agVykfQNX6
— Binance (@binance) April 18, 2022
How to Set Up Recurring Buy
Recurring Buys are one of the DCA strategies that Binance offers. You can choose which currency you want to buy. For how much and how often. We already mentioned the advantages. It is also a great way to grow your portfolio. Recurring Buy automates your purchases. There’s no need anymore to manually buy crypto at set times.
Here are three reasons why Recurring Buy is a good option to use.
- Portfolio Keeps Growing—Reduce volatile market influences.
- Convenience and Flexibility—Choose from 50+ cryptocurrencies.
- Easy Access to the Binance Ecosystem—Enjoy staking, yield farming, or trading. Or buy your first NFT.
Minimise stress and maximise gains with #Binance Recurring Buy.
— Binance (@binance) March 31, 2022
5 Steps for Setting Up Recurring Buy
- Choose Your Crypto and Enable Recurring Buy
Start with logging in to your Binance account. On the app, click the homepage tab [Credit/Debit Card] option. Select the preferred crypto you want to buy. Now you need to enable the ‘Recurring Buy’ option.
If you use the desktop version, click the [Buy Crypto] tab on the homepage. After that, choose [Credit/Debit Card].
Source: Binance support
- Select Your Preferred Fiat Currency
You can choose from well over 40+ fiat options.
- Set up the Frequency
Choose a date, and you can opt for weekly, bi-weekly, or monthly periods. It’s also possible to select the day and time for your Recurring Buy.
- Select Your Payment Methods
Currently, Binance accepts Visa or Mastercard. You can add up to 5 cards. In case you want to add more cards, you will first need to remove an older card. And if you use a card for Recurring Buy, you will first have to cancel the associated plan.
- Confirm Your Order Details
You have one minute to check and confirm your order. After one minute, the program will recalculate the price and the amount of crypto you will receive. To see the latest market price, tap [Refresh]. Once you confirm your order, you’re done. To check the status of your recurring buy plan, visit your order history.
Here is a video explaining the Recurring Buy option.
How to Set Up Auto-Invest
With Auto-Invest, you can earn passive income. To clarify, it’s a DCA strategy, but this strategy also earns interest for you. You can invest on a daily, weekly, bi-weekly, or monthly basis.
Any BNB you buy, will automatically deposit into the BNB Vault. Subsequently, you can earn various rewards with your BNB.
Most of you will be choosing this option if you live in a place where you can’t use cards on Binance to set up recurring buys. This plan works with money already in your Spot Wallet like your stablecoins.
Any other crypto you buy, adds to your Flexible Savings account. As a result, you receive an interest over your investment.
Required Steps for Setting Up Auto-Invest
- Log In to Your Binance Account
See the picture below how this looks like in the desktop version. So, click the ‘Earn’ tab and go to ‘Auto-Invest’.
In the app, there are two screens to go through. On the first screen click on [More] and on the second screen click on [Auto-Invest]. See below.
Source: Binance support
- Available Crypto
Now you can see which crypto is available for Auto-Invest. What’s more, there are two options for Auto-Invest. One is for a Portfolio Auto-Invest and the other one is for a single coin. It also shows the simulated ROI (Return of Investment) over the last 1, 2, or 3 years.
Source: Binance Auto-Invest
Set up Portfolio Auto-Invest
Let’s start with the Portfolio Auto-Invest. We walk you through this, step-by-step. However, for the app, see the video below.
For the website, here are the steps.
- Under Portfolio Auto-Invest, click on ‘Create a plan’.
- Click [+ Add Coins] and choose at least two coins. For instance, BNB and BTC. Once you selected all coins, click ‘confirm’.
- Now enter how much you want to add for each chosen coin. However, the minimum allocation % is 10%, and it should not exceed 100%.
- Enter how much you would like to add each period and choose a stablecoin do to this with. Currently, you can choose between USDT and BUSD. Now select a daily, weekly, bi-weekly, or monthly cycle. You can also add a specific day and time for each purchase.
- You can also choose to enable [Use Flexible Savings Balance]. In other words, if you don’t have enough balance on your spot account, it activates your Flexible Savings account. The system will automatically redeem enough funds. This way, it will be able to complete the buy order.
- Check the summary and click [Confirm] to subscribe.
Set Up an Auto-Invest Plan
For the app, check the video below.
Here are the steps for the website.
- Look for the coin you want to auto-invest and click [Create a plan]. See the picture below.
- Enter the amount you want to subscribe with and which stablecoin you like to use. Currently, Binance offers USDT and BUSD. Check if you want daily, weekly, bi-weekly, or monthly payments. You can also add a specific day and time for each purchase.
- Now you can also choose to enable [Use Flexible Savings Balance]. In other words, if you don’t have enough balance on your spot account, it activates your Flexible Savings account. The system will automatically redeem enough funds. This way, it will be able to complete the buy order.
- Check the summary and click [Confirm] to subscribe. See the picture below.
How to Check Your Auto-Invest Plans?
- View your ongoing Auto-Invest plans under; [My Auto-Invest Plan].
- You can also manage your Auto-Invest plans, by clicking [Go to Earn Wallet].
- When you like to view your Auto-Invest purchase history, click [Go to History].
- To view all your plans, go to [Auto-Invest Plan]. See the picture above.
- If you like to pause or resume a plan, you can toggle the [On/Off] button. You can also edit a plan. For instance, to change the frequency of the investment, click [Edit]. However, if you like to stop a plan permanently, click [Remove Plan]. See the picture above.
- You can also see your purchased crypto. Go to [Auto-Invest History].
We showed you two different ways to set up a DCA strategy. The Recurring Buy and also the Auto-Invest. The latter has the benefit of earning passive income. With Auto-Invest, you can also set up a portfolio. The Recurring Buy plan lets you go directly from fiat to crypto. With Auto-Invest, anyone who has money in their Spot Account can use it to set up automatic buys.
These are strategies that save time. You also don’t have to worry about timing the market right. DCA also reduces the impact of market volatility. Both options are great samples of ‘set and forget’.
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