No matter what it is, if you want to be successful in something then you need to come up with a plan. When it comes to cryptocurrencies, you need to have a plan for your crypto portfolio. The best plans are always those that are simple and execute themselves automatically.
Let's check out the Binance Auto-Invest's Portfolio Plan.
Why Having A Plan Is Important
In general, having a solid plan is a key to success. Whether you want to lose weight, get a college degree, or want to make more money, it is essential to have a plan.
If you want to be successful in a certain field, you need to come up with a plan. This also applies to cryptocurrencies. Failing to plan is planning to fail or in other words: If you don't manage to plan, you plan not to make it. Planning and also automatization replace willpower. On the one hand, it is easy to run a well-planned system. On the other hand, it takes a lot of energy to decide every day to save this or that.
With Binance Auto-Invest's Portfolio Plan, you can benefit from this principle and start successfully building up a diversified cryptocurrency portfolio from the scratch.
What Is Binance Auto-Invest's Portfolio Plan?
With the portfolio plan, the Binance Auto-Invest feature has just received an upgrade. Binance Auto-Invest is a feature from Binance Earn that allows you not only to invest in cryptocurrencies automatically and regularly but also to generate passive income on top.
By investing in cryptocurrencies regularly, you can start taking advantage of the dollar-cost averaging strategy and grow your cryptocurrency investments. Another big benefit of Binance Auto-Invest is that you start generating a passive income right away because your new crypto purchases are automatically moved to Binance Flexible Savings and $BNB to the BNB Vault to earn interest. As the interest gets paid out daily, you can also benefit from the compound effect as your savings grow exponentially.
Once you have set up your Binance Auto-Invest plan, you can simply lean back and watch your portfolio grow over time without having to be active all the time. You can set the plan and forget or monitor it from time to time.
I have already written about Binance Auto-Invest in the past. If you like then you can check out my previous post with the title "Taking Advantage of the Dollar-Cost Averaging Strategy with Binance Auto-Invest" here on Publish0x.
The portfolio plan is a new feature of the Binance Auto-Invest service. It is the easiest way to build up a diversified portfolio with multiple cryptocurrencies automatically. For a portfolio plan, you need to buy at least two different types of cryptocurrencies over time. So the number of coins and tokens that you can choose to purchase on a recurring basis is the main difference between the traditional Auto-Invest plan and the new Portfolio Plan feature. You can choose up to ten different coins and tokens per portfolio plan, and determine the percentage allocation of each cryptocurrency.
You can customize your multi-crypto portfolio plan easily. This gives you the ability to diversify your investment in cryptocurrencies. Simply choose the cryptocurrencies that you want to purchase including the allocation for each cryptocurrency and start the plan to build up a diversified crypto portfolio from the scratch.
The portfolio plan feature relies on the automation mechanics from Auto-Invest to lets you diversify your investment while steadily accumulating and growing assets over time. Once the portfolio plan is set, it gets executed automatically while taking advantage of the dollar-cost averaging strategy and the compound effect. The effort to maintain the portfolio plan almost goes to Zero, just make sure that you have enough $USDT or/and $BUSD stablecoins in your spot or flexible savings wallet so that the automated purchases can be executed.
Benefits Of Auto-Invest’s Portfolio Plan
Setting up your own Binance Auto-Invest's Portfolio Plan has several benefits.
- Your plan is automated. The best plans are those that execute themselves. If you want, you can set and forget it.
- You can take advantage of the dollar-cost average strategy and you do not have to time the market which is almost impossible even for experienced traders.
- You reduce risks by building up a diversified cryptocurrency portfolio and earning interest on top.
- Your portfolio grows exponentially as you can take advantage of the compound effect. The compound effect is strong because the interest gets paid out on a daily basis.
- When you take advantage of the compound effect, you have a passive income stream.
- The tracking of profits and losses is very intuitively as you can see the Portfolio PnL at any point in time.
- The Portfolio Plan Is Easily customizable. From how often you want to DCA to the type of crypto and percentage allocation. How your final Portfolio Plan will look like is totally up to you.
- You can get creative and customize as many Binance Auto-Invest's Portfolio Plans as you like with up to ten different assets per plan.
How To Set Up An Auto-Invest’s Portfolio Plan
You can easily set up your own Binance Auto-Invest's Portfolio Plan.
Just keep in mind that your Portfolio Plan needs stablecoin funds from your wallet to purchase the different cryptocurrencies on a regular basis. Please make sure that you have some $USDT and/or $BUSD stablecoins in your Spot and/or Flexible Savings wallet on Binance before you start creating your own Portfolio Plan. In case you do not have enough stablecoins in one of these wallets, the purchase will simply fail and Binance will try to make another purchase on the next Auto-Invest date. The good news is that a failed purchase attempt won't cost you any kind of fee. The purchase is just not executed.
You can set up your portfolio plan either in the Binance mobile app or on the Binance website. Log in to your Binance account and navigate to the Auto-Invest page on Binance under the "Earn"-Tab.
Click the yellow "Create a plan" button which is located next to the Portfolio Plan Auto-Invest banner.
A pop-up window will appear. In the pop-up window, click the "Add Coins" button and pick the coins that you want to include in your portfolio plan.
After adding the coins, allocate a percentage to each of the selected coins and make sure that the total percentage is 100%.
Also, enter your subscription amount, your preferred stablecoin (either $USDT or $BUSD), and enter the recurring cycle.
Check through your customized Portfolio Plan, read and agree to the Binance Auto-Invest Agreement, click the "Confirm" button and your Portfolio Plan is ready.
You can check and manage your customized Auto-Invest's Portfolio Plan anytime here at your Binance Earn Wallet. All executed purchases from your Auto-Invest's Portfolio Plan can be checked here under the History tab. The assets are deposited in your Flexible savings account and from there you can redeem them anytime you want.
My Final Words
I believe that Binance Auto-Invest's Portfolio Plan is a great solution for new cryptocurrency users to create their first diversified multi-asset portfolio from the scratch.
If you are for some crazy reason not registered on Binance yet, you can use my referral link with the invitation code E3PGAJCE for signing up. When you use it, it will save you trading fees each time you perform a trade on Binance. Don't forget about this possibility when you introduce a friend to cryptocurrency as it will save both of you some money.
Finally, I also like to remind you that my intention in this post is to raise your awareness of the new Binance Auto-Invest's Portfolio Plan feature and my intention is not to replace your own research. I may look quite smart on my profile pic but I am not your financial sensei. 🤓
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