Auto-invest
Auto-invest is a feature that automatically buys crypto at regular intervals. You choose the amount and how often you want to buy.
What is Auto-invest?
With Auto-invest, you set up a recurring buy order in advance. For example, you can set it to run daily, weekly, every two weeks, or monthly.
This approach uses dollar-cost averaging (DCA). That means you spend the same amount each time. When the price is low, you buy more crypto; when the price is high, you buy less. Over time, this can help average out your purchase price.
Some services also offer automatic withdrawals. In that case, the crypto you buy is sent to your personal crypto wallet after each purchase.
An example of Auto-invest
You set up a recurring purchase of a fixed amount of crypto each month. The buy order is then placed automatically, so you don’t have to make a purchase yourself every month.
The price may vary with each purchase, but the amount you choose stays the same. This is exactly how DCA works with Auto-invest.
Why is Auto-invest important in crypto?
Crypto prices can rise and fall sharply. With Auto-invest, you don’t have to decide for yourself every time when to buy. The feature can help you keep buying at regular intervals and reduce the influence of emotions like FOMO or panic.
You may come across Auto-invest in articles about the features of a crypto exchange, recurring buy orders, or crypto bundles. It doesn’t mean profits are guaranteed. The value of crypto can fall, even if you buy regularly.
Automatic withdrawals may mean that you store your crypto in a personal wallet. Always check the wallet address carefully: an incorrect address can cause problems.
