Auto-Invest - innovative way to enter the trading field

Sometimes it is quite difficult to adjust your portfolio to the fluctuations of the market. That’s why it is necessary to consider a new way to invest your capital, more innovative – Auto-Invest.

Auto-Invest definition

The concept of automatisation investing in crypto is based on the buying of chosen digital currencies which is executed completely automatically. The whole process is predetermined by the investor’s adjustments:

1. Defining the amount of assets.
2. Determining their allocation.
3. Preparing the schedule of buying.

It is also crucial to mention that the created auto-invest program will provide the market participant with a continuous participation of the investor in the market actions.

Moreover, such instruments generally provide users with a cryptocurrency diversification. The principle is based on investing in a variety of assets. In addition with several technical indicators, this investment tool can provide a stable long-term investment program.

Course of action

Here are several main steps which you need to execute to create an Auto-Invest model:

1. Picking the asset for a purchase. Type of crypto and its diversity is fully predefined by the investor.
2. Measure the desired quantity of the asset and choose the payment method: flat currencies, stablecoins and cryptocurrencies which are available for this service.
3. Define a Payment Order. There are several ways to support the Auto-Invest model by executing the Simple Earn Wallet function which will automatically sell some amount of your existing assets. This amount calculation is based on the necessary capital the investor needs to continue the buying process.
4. Determine a schedule for the Auto-Invest model.

After all the preparations the market player can start the process and observe the data from the existing wallet.

Here’s the example of the assets you can choose.

Auto-Invest index-linked plan

Index-linked plan of automated investing is another way to participate in the market. However, this way is focused on the existing Index: the buying process is fully adjusted to the Index. The model follows any fluctuations and provides the investor with a comfortable method of participation in the trades by owning the same amount of crypto as the Index existing state.

Binance, as an example, launched its own index-linked plan on December 5th 2022 and performs quite consistently.

Recurring vs One-Time

It is a very optional question: the choice fully depends on the market player’s preferences. One-Time buying is based on the principle of a once in real-time purchase. All the necessary parts of the subscription are included: crypto, portfolio and index-linked plan.

On the other hand, there is a recurring buying which provides you with a variety of time periods. The subscription can be performed on these periods:

1. 1 hour.
2. 4 hour.
3. 8 hour.
4. 12 hour.
5. 1 day.
6. 1 week.
7. 2 week.
8. 1 month.

As it was mentioned before: the choice is based on a market player’s investing plan and risk tolerance.

Rebalancing

Rebalancing is the crucial function of the automatic investing model. If the existing account doesn’t have enough funds to execute the predefined trade – system will automatically sell some of already owned assets to rebalance the account which will help to provide the planned trade. It also works like the equilibrium between the portfolio and the Index: the process can reshape the amount of assets you have to level your own capital to the existing Index.

Potentially profiting market participants

There are several groups of people who fit to the Auto-Invest model:

1. Retail investors. This is a type of market involvement which doesn’t demand a lot of attention and works as a passive income.
2. Institutional traders. It is a beneficial model for a fund and investment firm which can execute algorithmic trading to correct the performance and adjust to the market.
3. New traders and people who stakes a lot on the crypto. Automatic investing is also a great start for the learning market participants: passive income with ability to investigate all the existing fluctuations to understand the way the market works.

All-in-All, the Auto-Invest process is an innovation and may simplify the trading for many people. However, the preferences and the necessity of using such a model is fully predefined by the investor himself.