Business

Binance offers to make your monthly cryptocurrency purchase for you

Key facts:
  • The automatic investment service is available in bitcoin, ether, and BNB.

  • The tool allows you to program investments with a lower risk and earn interest.

This article contains referral links. Know more.

Reserving a fraction of the monthly salary for the purchase of cryptocurrencies is an increasingly widespread practice to protect savings and even earn interest on them. The cryptocurrency exchange Binance launched an automatic investment service that allows you to ignore doing these operations every month.

With the exchange’s new product, called Auto-invest or automatic reversal, the user can program the amount he wishes to acquire in the period of time he prefers. At the moment, there are three cryptocurrencies to choose from: bitcoin (BTC), ether (ETH), and Binance coin (BNB).

Beyond automating the purchase of cryptocurrencies, Binance also offers a complementary function, which is to generate interest from deposited funds. Thus, through Binance Savings, it is possible to get a periodic return from cryptocurrencies locked on the exchange.

How much can I earn with Binance Auto-Invest?

Depending on the period of time that is chosen (3 months, 6 months, 1 year or 3 years), Binance grants an interest rate that varies according to the currency and the time.

To illustrate the money that could be made, the platform displays a simulated interest rate based on the performance of these products in the past. Following this example, the interest on bitcoin ranges from 6% to 478%. Meanwhile, those who invested in ether could have generated profits of 11% to 1444%, while for those who deposited Binance coin the interest would have been even higher, between 20% and 2500%.

automatic-investment-cryptocurrencies-binance
Binance offers an interest simulation based on past performance of each cryptocurrency. Source: binance.com

What is this new option based on on Binance

With this, Binance provides the option to automate a strategy which is called Dollar Cost Average or DCA. As the CriptoNoticias Criptopedia explains, it is an estimated investment in dollars that is made every so often (it can be every end of the month) and can be increased if the returns are good.

In this way, each person can measure risks and analyze how they are doing before continuing to invest. It would be the opposite of investing all the available money at one time in an asset.

To assimilate it with other more “traditional” products, it can be said that this automatic investment service It is similar to the already known fixed terms of the banks. These investment instruments have the option of automatic renewal at the end of the stipulated duration. This allows the same money to be reinvested in the same product and to add the interest generated.

Likewise, they are also similar in that both generate periodic interest. In the case of the exchange, the advantage is that the option of Flexible Savings or ‘flexible savings’ allows access to these funds at any time, with the consequent readjustment of the earnings that will be received at the end of the month or of the specified period.

bitcoin-price-2021-2021
This is how the price of bitcoin has risen in the last year. Source: CoinMarketCap.

Finally, it cannot be ignored that cryptocurrencies, unlike the currencies issued by the Central Bank of each country, have had a much greater appreciation in recent years. According to data from CoinMarketCap, in just 12 months bitcoin has more than tripled its value, which was from USD 17,000 to USD 56,641 that is traded at the close of this note.

Source link

HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker