Binance has launched an auto-investment index-linked plan that allows users to easily earn passive crypto income without the need for in-depth coin and chart analysis. They recommend this plan for beginners who want to touch the cryptocurrency market.
According to Binance, the plans are evenly weighted, beginner-friendly, and have monthly rebalancing.
The exchange plans to launch more diverse indices in 2023 and integrate them into other Binance products.
What is the Binance Index linked plan?
This plan allows users to buy the top 10 cryptocurrencies by market cap on Auto Invest.
Auto Invest is a feature that automates the purchase of cryptocurrencies using the Dollar Cost Averaging (DCA) investment strategy. By default, auto-invest allows users to select cryptocurrencies. Cryptocurrencies are automatically purchased and sent to your flexible account where you earn passive income.
With Auto Invest plans, you choose the crypto you want to invest in, the amount, and the time period into DCA.
Index-linked plans take the hassle out of choosing cryptos from automated investment plans by investing in the top 10 cryptocurrencies by market value.
You cannot buy the index, but you can buy the cryptocurrencies that make up this index.
Cryptocurrencies that make up the index must pass the criteria to make up the top 10 weighted coins on Coinmarketcap.
Binance and Coinmarketcap require the coin to be listed for at least 30 days. Do not wrap or peg to other assets or algorithmic stablecoins. Index does not take meme coins either.
The current index consists of BTC, ETH, BNB, XRP, ADA, MATIC, DOT, TRX, LTC, and SOL.
The fee generated from automated investment trading from Binance’s liquidity pool will be 0.2%. By comparison, the exchange charges his 0.1% rate of the amount of assets paid in auto-investment currency for asset rebalancing transactions.
Since the crypto landscape is constantly changing, the value of each asset changes over time. Regular rebalancing of the index means automated trading that ensures each asset allocation matches the index.
The exchange rebalances assets based on data collected from Coinmarketcap on the 4th Monday of each month at 00:00 UTC. Then rebalance on Friday of the same week. This process is estimated to take 3-6 hours as subscribers cannot edit plans.
Recurring cycles offer two options: one-time purchases and recurring purchases. A one-time purchase subscribes to an indexed plan once, while a subscription subscribes to a daily, weekly, bi-weekly, or monthly plan.
Interested users can automate the purchase of indices that the exchange rebalances monthly.
This plan is only available in the app, but can be monitored from the website.
How to set up an index-linked plan
- Sign up/login to the Binance app.
- [その他]then tap[自動投資]Tap.
- [インデックスにリンク]Click[プランの作成]Choose.
- Enter the amount you want to invest and the base stablecoin.
- Select a recurring cycle and time of purchase.
- Review the plan and edit if necessary.[確認]Click.
- Read the notes on the next screen and[確認]Click.
To manage or edit your plan,[マイ プラン]go to options,[インデックス リンク]Choose. In the next window you can view all tour plans. To edit,[詳細を表示]Click.
Follow the prompts above to redeem your assets.[詳細を表示]After the[利用する]Choose. Enter the percentage of assets to redeem,[確認]Click. The exchange will send the redeemed assets to the spot wallet.
To delete a plan, you must first redeem all assets. After that, you will see the Delete Plan button. Click the button to delete the plan.
