Main Takeaways:
Recurring investment is an approach that allows users to grow their assets over time. It can benefit both crypto beginners and experienced traders.
Binance supports crypto recurring investments with two features â Recurring Buy and Auto-Invest.
Find out the benefits of recurring investment and how you can use it to optimize your crypto gains with Binance.
Navigating the dynamic crypto market with its ups and downs can be tricky even for experienced investors. One popular approach to investing that can reduce the impact of market volatility is âtime in the marketâ â a long-term approach that doesnât rely on guessing when the market is at its lowest or highest point, as opposed to âtiming the market,â which attempts to do just that. Read on to learn how and why investors use recurring investment strategies to grow their crypto assets over time.
What Is Recurring Investment?
Recurring investment refers to the method of investing a specific amount of money regularly, often on an automated basis, allowing the investor to gradually increase their exposure in line with the âtime in the marketâ approach. It often relies on a dollar-cost averaging (DCA) strategy to build oneâs portfolio by investing fixed amounts regularly. This method applies to both traditional and crypto markets, allowing investors to potentially acquire more assets at a lower average cost than if they were making a lump-sum purchase.
Binance offers two features to take advantage of a recurring investment strategy to manage your portfolio â Recurring Buy and Auto-Invest. The following sections explain the difference between the two, offer tips to increase your gains, and a guide on how to get started with recurring investment on Binance.
Three Main Benefits Of Recurring Investment
Investing on a recurring basis has several benefits compared to investing in lump sums. Below are three key advantages of recurring investment.
1. Steady portfolio growth
Recurring investments ensure that you spread out your investments over time, allowing you to grow your crypto portfolio with new funds consistently. If the crypto projects youâve put your trust in grow and develop, their revenues and token prices can also go up. Investing with a longer time frame ensures that you donât miss out on their growth as you are accumulating assets regularly.
2. Better risk management
Recurring investment helps to better manage the impact and risks of the crypto marketâs volatility. Instead of hoping that single bets would pay off, spreading out your investments across time smooths out the marketâs ups and downs, ensuring that you donât put all your eggs in one basket. Because you break your investments into smaller chunks, it also allows you to invest within your financial means each month, letting you have the flexibility to increase or reduce your investment amounts depending on your financial situation at the moment.
3. Disciplined investing
We all know how impulse trading can be detrimental to our crypto portfolios. Investing on emotions can cause investors to sell on impulse or miss out on price dips out of fear. Fortunately, recurring investments can help disconnect our emotions from our investments as both the amount and period are predetermined long before purchase. Ultimately, the recurring approach ensures that you invest with discipline regardless of market conditions, allowing you to focus on long-term accumulation of funds.
How To Set Up Recurring Investments
If youâre considering recurring investment as a strategy, there are two simple ways to invest on a recurring basis with Binance.
Recurring Buy on Binance
Recurring Buy allows you to grow your crypto assets by automatically purchasing cryptocurrencies using your VISA or Mastercard credit/debit card. It is most suitable for those who wish to increase their crypto exposure or those who want to automatically accumulate crypto assets using their preferred local currency. To learn more, refer to this guide: How To Grow Your Crypto Portfolio with Recurring Buy
Auto-Invest on Binance
Auto-Invest allows you to automate crypto investments and earn crypto at the same time. Unlike Recurring Buy plans, Auto-Invest plans allow you to purchase crypto regularly using any tokens and fiat. It also supports Credit/Debit cards as a payment option. You can read more about Auto-Invest here.
Conclusion
With recurring investments, you can have the biggest advantage of them all: time. You can easily get started on Binance simply by buying crypto via the Recurring Buy function or setting up an Auto-Invest plan.Â
Ready to start your cryptocurrency adventure with Binance? Get started with few steps:
Download the Binance app
Sign up for a Binance.com account
Verify your account
Further Reading
What Is Recurring Buy and Frequently Asked Questions
What Is Auto-Invest and How to Use It
Unlock the Power of Binance's Auto-Invest Index Plan
Risk Disclaimer: Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. Binance is not responsible for any losses you may incur. For more information, please refer to our Terms of Use and Risk Warning. This is a general announcement. Products and services referred to here may not be available in your region.