Note:
As of 2025, Binance has discontinued its Auto-Investment feature. It still offers DCA Bots, which use a similar strategy. The difference is that Auto-Investment was a subscription-based product with beginner-friendly features, while DCA Bots involve a more advanced setup. In this article, we explain how the Auto-Investment feature worked and also expand on DCA Bot strategies and alternatives to Binance’s Auto-Investment.
How Auto-Investment Strategies Work
Auto-investment tools are algorithms that execute trades automatically based on given parameters. They are similar to DCA trading bots in that they also utilize the DCA strategy, but they often offer a simpler approach to setting up an investment strategy. On the other hand, DCA trading bots are more customizable and operate through certain trading rules such as rebalancing and price triggers.
An auto-investment tool schedules regular investments in specific cryptocurrencies regardless of the current price. It is focused on periodic investments and, in some cases, may also deposit the assets into yield-generating accounts to grow the crypto holdings. Once investors have accumulated a certain amount of crypto, they can choose to sell it later at a favorable price to make a profit.
By utilizing the DCA (Dollar-Cost Averaging) strategy, these tools help reduce the impact of price volatility on investment. Investors can use them to set up recurring investments and grow their crypto holdings. Moreover, they can also diversify their investment across multiple cryptocurrencies.
Selecting the Right Coins
The DCA Auto-Investment strategy uses the approach of spreading out investments over regular intervals, which helps reduce the risk of making a large investment at an unfavorable price. This strategy works well with cryptocurrencies that have downward trends or volatile price movements. If you choose a coin with a long-term upward trend, this strategy may lead to acquiring crypto at progressively higher prices, which could reduce overall returns compared to a lump-sum investment if your goal is to sell later.
Cryptocurrencies such as BTC and ETH, which often experience weekly or monthly price fluctuations, can be good for an Auto-Investment plan because they have a history of recovering after downturns, potentially leading to significant profits over time. On the other hand, newly launched cryptocurrencies, which lack historical performance data, are riskier as they have a higher potential to lose value in the long term without recovering.
Selecting the Right Parameters
Previously, Binance provided multiple payment options for recurring investment plans, including stablecoins and other crypto in your spot wallet or fiat currencies. When setting up a DCA investment strategy, users could select a specific interval ranging from a minimum of 1 hour to a maximum of monthly, allowing them to spread out investments over different timeframes. Investors also specified the amount of crypto to purchase at each interval. By defining risk tolerance and budget, they could decide the appropriate amount for regular investments. For example, those wanting to take advantage of short-term price movements could choose a 4-hour interval, which triggered an investment every 4 hours. The Auto-Invest feature helped investors consistently invest without the stress of manual setup, saving time and reducing emotion-based decisions.
Portfolio Auto-Investment for Reducing Risks
Investing in a single cryptocurrency, even through a DCA strategy, was risky if the market did not recover after continuous price downfalls or if the investments were poorly timed. Diversifying into multiple cryptocurrencies helped reduce this risk, as some cryptocurrencies could perform better when others were underperforming. Moreover, Binance Auto-Investment’s ability to deposit assets into Simple Earn Products also allowed users to grow their crypto, potentially leading to better returns.
Users could either allocate specific percentages of their total investment to each crypto, ensuring the total allocation equaled 100%, or use Portfolio Templates to finalize an investment plan. By doing this, investors gave a specific portion of their total investment to each cryptocurrency. They could assign bigger allocations to those cryptos which, based on technical analysis, seemed more likely to provide better returns. However, this required analyzing the relative performance of cryptocurrencies using historical market data and current price trends.
Binance DCA Bot: A Better Alternative
While Binance’s Auto-Investment tool is discontinued, many investors can use the DCA bot, although that requires advanced setup. For beginners, the DCA bot can pose a learning challenge as it involves more advanced terminologies. Here’s a quick overview of all parameters used in Binance’s DCA bot:
| Parameter | What it Does |
| Price Deviation | Percentage price movement that trigger DCA order |
| Base Order | Initial Investment amount that should not be exceeded |
| DCA order | Recurring investment amount that should not be exceeded |
| Max DCA | Maximum number of DCA orders that will be placed per round |
| Take Profit | Target profit percentage calculated from entry price (how much profit you want) |
| Trigger Price | The price of crypto to start DCA orders |
| Price Deviation Multiplier | Increases the price percentage deviation for successive DCA entries. |
| DCA order size multiplier | Adjusts size of successive DCA entries. |
| Cooldown Between Rounds | Default minimum wait time of 60 seconds between completion of one round and starting the next. |
| Lower price range | Lowest price to execute DCA order |
| High price range | Highest price to execute DCA order |
| Stop-loss | Target loss percentage that when hit, ends the DCA orders. |
With these parameters properly configured, the strategy “buy more when price is low and sell when price is high” can be automated. The bot does not simply invest on time-based intervals like Auto-Invest; instead, it reacts to price movements through the trigger price, deviation, and price range parameters. However, you still need a good understanding of current price trends, otherwise you may end up adding DCA orders during an uptrend (when the market could soon reverse).
This DCA strategy is best suited for sideways or bearish markets, where you can accumulate crypto at lower levels and take profit once prices rebound.
Concluding remarks
While Binance’s Auto-Investment feature is now discontinued and did not offer full customization—such as specifying advanced parameters—it provided a simpler approach to using a DCA strategy. Users could set a specific amount to invest regularly and select a preferred interval, helping to spread out investment and reduce the impact of price volatility (that is more significant with lump-sum investments). The ability to allocate portions of the total investment across different cryptocurrencies also allowed for more uniform diversification.
For investors looking for greater control and advanced strategies, Binance’s DCA Trading Bot is a better alternative. With parameters like price deviation, DCA order size, take profit, and stop-loss, the bot enables automated buying at optimal price points and more precise risk management. Overall, while Auto-Invest offered simplicity, the DCA bot provides a more powerful and customizable approach to executing Dollar-Cost Averaging (DCA) strategy.
