How auto-investment works
Auto-investment tools use the DCA strategy and allow users to automatically invest specific amounts of crypto at regular intervals. These tools come with additional benefits such as staking rewards which allow your portfolio to grow over time. You can create auto-invest plans for a single cryptocurrency or multiple cryptocurrencies, depending on your budget.
This tool is a great option for beginners who are willing to use DCA strategy to overcome crypto price volatility. The DCA strategy reduces the impact of price volatility on investment by distributing small investments at different prices to average out the cost per unit.
Binance Auto-Invest: Flexible Plans with Earnings Potential
Binance primarily offers a one-time plan and recurring plan to grow crypto portfolio. The recurring plan enables regular investments on hourly, daily or weekly, bi-weekly or monthly basis in single or multiple cryptocurrencies, allowing users to acquire crypto. The crypto is then deposited in Simple Earn Flexible Account, providing rewards which can be redeemed anytime. One reason we prefer Binance Auto-invest to be the best tool is the presence of multiple plan templates which have shown performance in the past. You can also create your own custom plan and allocate specific percentages of portfolio value to different cryptocurrencies.
One thing to remember is that the index-linked plan does not give Simple Earn product benefits as portfolio plans give. It is an advanced automated DCA strategy involving top 10 cryptocurrencies indexed by CMC.
Bybit Auto-Invest: Advanced Tools for Strategic Growth
Bybit’s Auto-Invest feature allows complete customization of recurring plans to purchase cryptocurrencies. The tool is beginner-friendly and allows you to select a specific day to execute investments if you choose a weekly schedule, or a specific date if you choose a monthly schedule.
Unlike Binance, it does not offer index-linked plans or any pre-designed templates to get started easily. Setting up a recurring plan is straightforward and user-friendly. Bybit’s Auto-Invest feature, however, does not include staking rewards or other additional benefits. Its primary focus is on utilizing the Dollar-Cost Averaging (DCA) strategy to help users potentially make profits through regular and automated investments.
Bitget Auto-Invest: Beginner-Friendly and Simple to Use
Similar to Binance, Bitget also offers additional staking rewards when users invest their funds using the spot auto-invest tool. The invested crypto is deposited into a flexible savings product, generating daily interest income.
Bitget’s auto-invest combines two strategies: Dollar-Cost Averaging (DCA) and staking (which generates interest income). This approach helps reduce market volatility risks through small recurring investments while simultaneously enabling passive income.
Users can redeem their interest rewards at any time, and the auto-invest feature continues generating returns as long as there is sufficient balance in the spot wallet for regular investments. Additionally, you can allocate specific percentages of your total investment across different cryptocurrencies and set the purchase frequency to hourly, daily, or monthly.
Concluding Remarks
Auto-invest primarily involves recurring automated investments, but the method of execution and the level of customization vary across different crypto exchanges that provide this tool. This tool is best suited for beginners who want to utilize the DCA strategy.
On the other hand, DCA trading bots are more advanced, require good trading skills, and may not be suitable for beginners. As mentioned in this review, crypto exchanges like Binance offer additional benefits, such as staking rewards within the auto-invest feature. Therefore, this can be a better option compared to DCA trading bots if you are new or have limited experience in crypto trading.
Overall, these tools are user-friendly and enable the easy execution of the DCA strategy. Users can invest in multiple cryptocurrencies to diversify their portfolio and reduce the risk of losses.