Dollar-cost Averaging on Binance
Traditional advice given to investors is to buy low and sell high. However, it is difficult to approach cryptocurrency the same way due to its high price volatility, especially over the short term. Most cryptocurrency investors invest for the medium to long term to improve their chances of selling their holdings at a higher price than what they purchased their cryptocurrency at. Another approach that has now entered the market is the ability to automatically purchase cryptocurrency at regular intervals. One such option is Binance’s flexible recurring buy option and in this article, we will take a look at what Binance Recurring Buy is, the cryptocurrencies that you can purchase with Binance Recurring Buy, whether or not Binance Recurring Buy is worth it and how you can set up recurring buys with Binance.
Dollar-cost Averaging (DCA) on Binance
How to DCA with Binance Recurring Buy
You can either use the Binance app or their website to set up your recurring purchases. Let’s take a look at how you can create a recurring buy for any cryptocurrency on their website first.
Before we begin, it is important to note that you must have an account for Binance and you must be logged in on their website if you want to create a recurring buy on their website or on their app if you want to set up a recurring buy on the app.
It is also important to note that Binance tries to obey global regulations. People in some countries may not be able to purchase cryptocurrency through their Visa card or Mastercard because of local exchange controls.
1) Log in to your account or create an account
The first step to get started is to create an account with Binance. If you already have an account then log in to your account and proceed to step 2.
If you don’t have a Binance account, go register for an account. Once registered, you might need to complete identity verification for your account before you can purchase cryptocurrency through Binance. Once verified you can proceed to the next step to set up your recurring buy.
2) Purchase cryptocurrency
Once logged in to your Binance account in the browser, navigate to the Buy Crypto tab and select Credit/Debit Card from the dropdown menu. You will then be navigated to the purchase cryptocurrency screen. This screen will show you two main fields, which are the fiat currency that you want to use for the purchase and the cryptocurrency that you want to purchase.
Underneath these two fields, you will see an option to make this purchase a recurring buy. If this option is not enabled, indicated by the word Enable being next to the option, then click the Enable text. This text should now change to Disable. This is how you know that the recurring buy option is activated. Before clicking the Continue button, click on the Recurring Buy text and proceed to the next step.
3) Configure your recurring buy
When you click the Recurring Buy text, you will be presented with a new screen to configure your recurring buy. In this screen, you will need to select whether you would like to purchase cryptocurrency daily, weekly, bi-weekly, or monthly. You can also set what time and day you would like the purchases to be made. Once you have configured the necessary fields for your recurring buy, click OK.
4) Select the card that you would like to use for the purchase
After completing step 3, you will be taken back to the screen shown in step 2. Before clicking Continue, you will need to enter the amount of fiat currency that you would like to use for the purchase. It’s important to note that the amount that you enter here will be used for each recurring purchase. Once done, click Continue.
You’ll now be presented with a screen where you will select the payment option that you would like to use for the current and recurring purchases. If you would like to use another card or don’t have any cards linked to your Binance account, then you can easily change or add a card by clicking Change card. You can link a maximum of 5 cards to your Binance account. If you already have 5 cards linked to your Binance account, then you will have to delete an existing card to add a new card. Just note that if you have a recurring buy setup with the deleted card then the recurring purchase will fail.
Once completed, click Continue. You can now review your recurring buy settings. You will have one minute to confirm the settings of your recurring buy, otherwise, you will need to click Refresh. This is because the recurring buy is based on the price at that given moment. So, if the minute expires then the price for the cryptocurrency will be different.
If you are happy with the recurring buy settings, then click Confirm and proceed to the next step.
5) Wait for your order to be processed
After completing the above steps, your order will be processed by the Binance team. You can either check the status of your order by clicking View History or you can click Refresh to see if your order has been processed. You will be notified if your order was processed successfully or if it failed. If it fails for any reason, then you can click Accept New Quotation or Cancel Payment to cancel the recurring buy. The new quotation will have a new refreshed price that may be higher or lower than the price at the time of creating the recurring buy order for the first time.
Success! You have now successfully created a recurring buy on Binance! Proceed to the end of this article to see how to manage your recurring buy settings.
Let’s now take a look at how to create a recurring buy on the Binance app.
Creating a Recurring Buy on the Binance App
Creating a recurring buy on the app is the same process as setting up one on the Binance website, except the screens look a bit different.
To get started, click on the Credit/Debit Card option on the home screen of the app. You will then need to select the cryptocurrency that you want to buy, the fiat currency you want to use, how much of the cryptocurrency you want to buy, and enable the Recurring Buy option. You will also have to set the time, day, and frequency of the recurring buys. This is all done on the same screen. Then click Continue and select the payment option for the recurring buys. If you have selected the payment option that you would like to use, click Confirm. You can now review the details of your recurring buy and if you are satisfied with all of the details, click Confirm again. Similar to if you purchased on the website, your order will be processed by the Binance team and you will be notified if it is successful.
Managing Your Recurring Buy Plan
To review your buy plans, go to Orders then select Buy Crypto History. Click on the option to View Plan next to the order that you wish to change. Now click Manage. You will be presented with a screen that shows all of your settings for the selected recurring buy. Here you can either change the plan details such as the frequency, time, and day, or you can stop the plan completely.
To change the details of the plan, select the new settings that you would like to change for the buy plan. Then click Continue twice. You will then need to verify the changes by entering the email code and mobile code that Binance will send you.
To stop the plan select the option to Stop Recurring Buy Plan after you have clicked Manage for the selected recurring buy plan. A dialog box will ask you to confirm the cancellation, select Confirm. Once done, your buy plan will be stopped with immediate effect.
Managing your recurring buy orders follows the same process whether you are using the Binance mobile app or the website.
The Benefits of Binance Recurring Buy
The profitability of Binance Recurring Buy depends on what your investment strategy is. If you are looking for more of an automated trading solution then Binance Recurring Buy might not be for you, unless of course, you have your own trading bot and strategy linked to your Binance account that places trades based on a strategy. Binance Recurring Buy is really only an automated purchasing functionality so that you do not have to manually go through the investment process each time that you want to buy cryptocurrency if you plan on purchasing cryptocurrency more frequently.
The target with Binance Recurring Buy is not profitability but rather a simpler purchasing process. Should the past long-term price trend of cryptocurrency continue then Binance recurring purchases can be a simple way to make a profit over the medium to long term.
Is Binance Recurring Buy Worth it?
Binance Recurring Buy: Conclusion
Binance Recurring Buy allows you to purchase cryptocurrency seamlessly at regular intervals. It offers the flexibility for you to change the recurring purchase settings for any one of your buy plans and utilizes a Dollar Cost Average investment strategy to help you combat the effects that volatile cryptocurrency prices have on your investments.
You can set up multiple recurring buy orders for all of your favorite cryptocurrencies using your Visa or MasterCard credit or debit card, and can set up and manage your buy orders either through the Binance app or website. To get started, you will need to create an account.
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