Auto-invest is a new service that Bitrue has been working on integrating for several months, allowing users of the centralized exchange to buy digital assets at fixed quantities on an automated basis, to assist users in lowering the average cost of their investments and cushioning them against market volatility. For the benefit of new and existing users, we will be going into the basics of this new feature.
In this AMA, we were joined by Ivanna, Bitrue’s product manager, to talk about our newly launched auto-invest feature. Without further ado, let’s take a look at the main Q&A’s below:
Q1. What is auto-invest?
Auto-Invest empowers you to streamline your crypto investments and expand your digital asset portfolio effortlessly. Employing a dollar-cost averaging (DCA) approach, it enables regular purchases of selected cryptocurrencies according to your preferences.
The Auto-Invest feature represents a dynamic trading tool tailored for strategic batch investments. It's designed with precision, offering a seamless approach to entering positions with fixed-time and fixed-quantity purchases.
What makes it stand out is its versatile support for a spectrum of cryptocurrencies, empowering users with diverse investment choices. But its brilliance doesn’t stop there; Bitrue Auto-invest ingeniously channels auto-invested assets into flexible interest products, adding an extra layer of potential income.
Think of it as a conductor orchestrating a symphony of financial growth – creating positions strategically, aiming for robust, long-term returns. It’s not just about trading; it’s about building a pathway to sustained financial prosperity.
Q2. How does auto-invest work?
Setting up Auto-Invest on Bitrue is a breeze! All you've gotta do is dial in these easy parameters:
First off, pick your investment squad—up to 10 different currencies—and decide how much of your investment pie each one gets.
Then, set the rhythm of your investments: you can go from speedy hourly investments to chill monthly ones, whatever suits your style.
Lastly, choose the amount you wanna throw into the mix per period. Right now, USDT is the star player in this game.
It's all about making it super simple for you to tailor your crypto journey exactly how you want it. No complicated setups, just your rules, your pace, your way.
Q3. Could you elaborate on the advantages of using Auto-Invest during market volatility compared to traditional buying strategies?
Auto-Invest offers several advantages during market volatility compared to traditional buying strategies:
1. Disciplined Approach: Auto-Invest operates based on preset parameters, following a consistent investment plan. This disciplined approach helps avoid emotional decision-making often seen in volatile markets, reducing the risk of making impulsive, fear-driven investment choices.
2. Dollar-Cost Averaging (DCA): Auto-Invest typically employs DCA, spreading purchases over regular intervals regardless of market fluctuations. This strategy allows investors to buy more units when prices are low and fewer when prices are high, averaging out the cost over time. It minimizes the impact of short-term volatility on the overall investment.
3. Consistency and Automation: With Auto-Invest, buying occurs automatically according to the set schedule, regardless of market ups and downs. Once you've got everything set up just the way you like it, you're all set for smooth sailing. No need to keep setting up transactions every time you want to make a purchase—just set it and forget it, and watch your plans work their magic. This consistent approach ensures that investments are made systematically, without the need for constant monitoring or manual intervention.
4. Reduced Timing Risk: Traditional buying strategies might involve timing the market, which can be challenging, especially during volatile periods. Auto-Invest eliminates the need for perfect timing, as it spreads investments over time, potentially reducing the risk associated with market timing.
5. Long-Term Perspective: Auto-Invest encourages a long-term outlook by focusing on consistent, scheduled investments. It helps investors stay committed to their investment goals rather than reacting to short-term market fluctuations.
6. Diversifying your positions: Think of it as having a game plan that keeps you on track. This smart approach helps you steer clear of those impulsive market moves that can sometimes throw us off course. By sticking to this disciplined strategy, it's easier to 'HODL' onto your investments for the long haul. It's like having a steady hand guiding your journey through the ups and downs of the market.
Overall, Auto-Invest offers a more controlled and systematic way to navigate volatile markets, shielding investors from the emotional rollercoaster and potentially leading to more stable, measured investment outcomes over time.
Q4. How does Auto-Invest mitigate the impact of market fluctuations on investment costs?
When the market is volatile over a long period, if we put in 100% of our money to buy at a single price, we will suffer greater losses and mental stress when the price keeps falling, which may cause us to make irrational trades, such as selling off at a low point and missing out on subsequent upside opportunities.
However, an auto-investment strategy allows us to diversify our funds by buying 10% each day and building up the position over 10 days. The dollar cost average (DCA) of our investment will be the average price of prices locked in over these 10 days. This strategy does not require repetitive actions and operations as it can be set up in one go.
This approach helps to spread out the investment over time and minimizes the impact of short-term market fluctuations. By consistently investing a fixed amount, investors buy more shares when prices are low and fewer shares when prices are high, ultimately lowering the average cost per share over time.
The scientific and rational approach to building a position is more conducive when we intend to hold a certain currency long-term and to reap its benefits in the long run.
Q5. What are the primary cryptocurrencies available for investment through Bitrue's Auto-Invest feature?
Bitrue's Auto-Invest feature currently supports a diverse range of 18 cryptocurrencies, encompassing both mainstream assets, popular Web3 tokens and our native token BTR.
Among the primary cryptocurrencies available for investment are well-known names such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). Additionally, users can explore opportunities with alternative Web3 assets like Avalanche (AVAX), Solana (SOL), and many others.
It's worth noting that our commitment to providing a comprehensive investment experience remains steadfast. We plan to continuously expand the list of investable assets within the Auto-Invest feature, ensuring users have a broader spectrum of choices for portfolio diversification. So stay tuned to our X/Twitter account for the latest updates!
To explore the current selection of supported currencies and stay updated on any additions, you can conveniently refer to the Auto-Invest page on the Bitrue platform.
This page offers a transparent overview of the cryptocurrencies available for investment, allowing users to make informed decisions aligned with their investment objectives.
Q6. Can users choose the frequency of their investments with Bitrue Auto-Invest, and what options are available?
Certainly! Users have the flexibility to customize their investment frequencies with Auto-Invest based on their individual preferences and strategies.
Currently, the supported frequencies range from as frequent as every 1 hour to intervals of 4, 8, and 12 hours. This granularity enables users to align their investment approach with specific timeframes that suit their goals and trading style.
Moreover, for those seeking more extended intervals, options include daily, weekly, bi-weekly, and monthly auto-investments. This comprehensive range of frequency options caters to a diverse audience, accommodating both those who prefer a lower frequency for long-term investment strategies and those who engage in more high-frequency trades for dynamic market opportunities.
The availability of such varied intervals ensures that Auto-Invest is adaptable to different investment horizons and trading preferences, providing users with the flexibility they need to optimize their investment strategies effectively.
Q7. What is backtesting data and how does it support the potential returns users can achieve through Auto-Invest?
In a 30-day backtest, we figure out the average price by adding up the prices recorded every day at 0:00 (UTC) for the past month, we then divide this total by 30 to get an average. Afterward, we compare this average price to the current market price.
This calculation helps us imagine how much profit or loss there might have been if you invested in something 30 days ago and held onto it until now, without selling anything. We make sure to subtract any trading fees from this hypothetical profit or loss to give you a more accurate picture. It's like looking back in time to see how an investment might have performed.
Q8. How does Bitrue ensure Auto-Invest recommendations align with users' risk preferences and investment goals?
Our recommendations stem from a comprehensive analysis incorporating three key factors:
#1 Market Dynamics
We closely examine the current trading volume and market capitalization of the coin, allowing us to gauge its current standing in the market.
#2 Performance History
By delving into the historical trend and past performance of the coin, we gain valuable insights into its potential trajectory, helping users make informed decisions.
#3 Bitrue Trading Activity
Taking into account the trading volume of the coin on Bitrue, we factor in the platform-specific dynamics, ensuring that our recommendations align with the trading trends on our platform.
Through this meticulous approach, we identify and suggest popular, high-quality assets, aiming to empower our users with well-informed investment choices.
For more information, please visit: https://www.bitrue.com/home
For updates, follow Bitrue's social platforms: