*This post may contain affiliate links that help keep the lights on, find more info in our full disclaimer.
Passive Income + Dollar Cost Average = BINANCE AUTO INVEST 2023
How Binance Auto-Invest Works
Did you know you can schedule reoccurring cryptocurrency buys and automatically earn interest with Binance Auto-Invest?
That means you can fully automate your investing and passive income strategy with Binance Auto-Invest. That makes it ideal for those looking to Dollar Cost Average (DCA).
Automate Your Crypto DCA Strategy With Binance Auto-Invest
Whether you are looking to invest daily, weekly, or monthly, Auto-invest is a great fit for those investors who prefer a passive DCA strategy over an active trading strategy.
The benefits of this strategy become even more obvious when you consider that it can be fully hands-off after the initial setup. On most platforms, you have to go into your account and make a purchase every time you want to buy. Then you also have to move your coins to earn a yield (in some cases, this can mean large transaction fees, which eat into yields).
With Binance, you get to skip all the active management steps and additional fees and watch your holdings grow. That is because everything can be automated, and everything is conveniently offered via one platform.
Imagine accumulating Bitcoin weekly, thereby avoiding price volatility and capturing an average price, and then also making 3% (the current Flexible Savings APY) on your holdings on top of that – All without lifting a finger. That is what is possible with Auto-Invest.
Now that you know why Auto-Invest rocks, let’s cover everything you need to know to put your investing on cruise control with Binance.
Make sure to put the stablecoins you will use to auto-invest in a Flexible Savings account so you can earn a passive income while you wait to deploy your funds according to your Auto-Invest plan.
Preparing to Create an Auto-invest Plan
This section will walk you through preplanning your auto-invest strategy and then setting everything up on Binance.
The first step to creating an auto-invest plan is to pick out the coins you want and what percentage of your portfolio you want each to be. That will help inform how much you want to buy and how often.
When it comes to picking what coins you want, there are many methods to choose from. But a good place to start is to check out the coins currently offered on Binance Auto-Invest.
The current list of coins on Binance Auto-Invest includes BNB, BTC, ETH, SOL, ADA, DOT, XRP, and AVAX, but the exact coins offered are subject to change. So make sure to check out the current list (luckily, it includes most of the top coins in the market you would generally want to be buying anyway).
On that list of Auto-Invest assets, you’ll also find historic ROI, charts, and the current spot price of each coin, as well as buttons for creating a plan.
Once you know your coins and roughly what percentage of your portfolio you want them to be, it’s time to pick the size and frequency of your buys.
I suggest writing that down on paper and planning everything out before you start setting up your buying schedule on Binance. With that said, once you have everything planned on paper, you’ll be ready to click the [Create a Plan] button next to the coin of your choice and start investing.
Let’s walk through how to set up auto-invest and create a plan now so you can start automatically investing AND earning a passive income.
How to Set Up Auto Invest
Now that you know what you want to do, it’s time to set up Auto-Invest. Here is how you do it.
- Log into your Binance account. If you don’t already have an account, make sure to use use Binance referral code SRC2N1F2 for 20% off plus a $100 bonus when you sign up.
- After logging in, click [Finance] – [Binance Earn]. Once you are on the Earn page, click [Auto-Invest]. You can also simply use this link to go directly to Auto-Invest.
- On the auto-invest page, you will see a list of all the different subscriptions available right now. Select the subscription you want to start with and click the [Create a Plan] button (you can do more than one but have to do one at a time).
- In the pop-up window, enter the subscription amount and the stable coin you want to use to make your purchase. Then select the recurring cycle and day to define both the frequency and the day on which you buy. Don’t forget to also enable [Use Flexible Savings Balance] if you have your stables in flexible savings like we suggest so those funds can be used as well (as remember, you want to be earning a passive income on your stables while you wait to deploy them via auto-invest).
- Once you have everything set the way you want, click [Confirm] to subscribe to the product.
Now that you are invested in one product, you can add as many as you wish. Each subscription can have unique settings as well, which can help you decrease volatility even further by spreading your buys out between different times.
From here, you can view your auto-invest plan subscriptions at any time.
- You can see your ongoing Auto-Invest plans under [My Auto-Invest Plan].
- To manage your Auto-Invest plans, click [Go to Earn Wallet].
- To view your Auto-Invest purchase history, click [Go to History].
You can also toggle your plans on and off or change parameters by clicking [Edit] when you manage your plans. You can also remove plans here, so you always have full control over your auto-invest strategy.
Auto-Invest and Beyond
Using Auto-Invest as designed is clearly powerful, but let’s end this article by discussing some tips and tricks that can take your Binance DCA strategy to the next level.
One thing to keep in mind is that Flexible Savings isn’t your only option for earning a yield on Binance. In fact, there are times when other Earn products will offer a better payout. Since you can always transfer your funds in and out of Flexible Savings, it can make sense to keep an eye on the current yields on Earn and swap your funds into other products like Locked Savings or even Dual-Investment when the opportunity arises! While you have to do these by hand, and there are other considerations like lockup periods and risks, the extra yield can be worth it.
Next, it can at times make sense to switch up your strategy. You may want to consider the general trend of the market or a coin and shift to a more aggressive buying strategy when you feel like you have a great deal or switch more buying power to a given coin when you feel like it is undervalued. Like the Earn tactic mentioned above, this requires some work but may improve your overall performance.
Of course, the two tactics above only scratch the surface of how you can customize your DCA strategy with Binance. You could also, for example, make extra buys at key levels, shift some funds into coins not on the Auto-Invest list, or even hedge with Binance Futures or options.
Ultimately your strategy is going to be something you design. Hopefully, this article gave you an idea of not only how you can make Auto-Invest work for you, but how you can take your strategy to the next level by using all the tools Binance offers.