Dollar-cost averaging (DCA), also known as Auto-Invest, is a simple and effective investment strategy particularly suited for those who are bullish on cryptocurrency long-term. After registering on Binance, you can use the Auto-Invest feature. Download the Binance APP to set up automatic recurring purchases conveniently.
What Is Auto-Invest
Auto-Invest means regularly purchasing a cryptocurrency with a fixed amount. Regardless of whether the price is high or low, you buy at the scheduled time. Over the long term, this averages out your cost basis and avoids the risk of buying all at once at a peak.
Steps to Set Up Auto-Invest
- Open the Binance APP and go to "Earn"
- Find the "Auto-Invest" feature
- Select the cryptocurrency to invest in (e.g., BTC, ETH)
- Set the purchase amount for each cycle
- Choose the investment frequency (daily, weekly, biweekly, monthly)
- Select the funding source (USDT balance)
- Confirm to activate Auto-Invest
Strategy Suggestions
- Auto-Invest in BTC: The safest choice; Bitcoin has been the cornerstone of the crypto market over the long run
- Auto-Invest in ETH: A good choice for those bullish on the Ethereum ecosystem
- Multi-asset Auto-Invest: You can auto-invest in multiple cryptocurrencies simultaneously to diversify risk
Amount Recommendations
Set the amount based on your financial situation. It's recommended to use spare money that won't affect your daily life. Auto-investing 50-200 CNY equivalent in USDT per week is a solid starting point.
When to Stop Auto-Investing
The core principle of DCA is consistency -- short-term price fluctuations shouldn't affect your plan. Unless your investment thesis has fundamentally changed, it's recommended to keep executing the plan.