How to Invest in Crypto with Gate.io Periodic Investment Plan

Deciding when to invest in a crypto token may be challenging. Luckily, Gate.io Periodic Investment Plan offers a strategy to help you get through that.

Building a sophisticated crypto investment plan may still be challenging for many investors, especially beginners. Deciding what token to invest in and when to do it is a crucial decision that needs good analysis as well as experience.

To help you plan out your long-term investment, Gate.io has released a new feature called Gate.io Periodic Investment Plan. 

Gate.io Periodic Investment Plan basically offers an investment strategy that enables users to buy digital tokens in a stable manner. It involves the periodic purchase of digital tokens with a fixed amount of funds and a fixed proportion for each token in a portfolio.

The idea is that by purchasing at different times, investors could lower the risk of buying assets at a high price compared with the one-off method.

In addition, the fixed amount of money could also help to balance the average cost. This strategy aims to help investors reach their investment goals in the long run.

How to Invest with Gate.io Periodic Investment Plan

1. Head over to Gate.io's official website and log in to your account.

2. Go to "Finance" and click "Auto-investment page". You'll see a list of various high-yield investment plans. You can choose to invest in an existing plan and edit it based on your preference or create your own plan from scratch.

3. If you choose to edit an existing plan, click "Go to Investment" on the plan that you want to invest in and make changes according to your needs. You can even change the name of the plan and add your own description if you want.

4. Once you're done, click the "Ok" button to submit your plan. You'll see a success pop-up message on the screen, which shows that your plan has been made. Click "Ok" to continue.

5.  Your plan will be displayed under the "My Investment" tab.

The Benefits of Gate.io Periodic Investment Plan

Here are some of the benefits that you could get from investing in Gate.io Periodic Investment Plan:

• Strict Currency Screening Process
  All cryptocurrencies supported by Gate.io have been ed and gone through a tight screening process. Gate.io only supports reliable cryptocurrencies with good liquidity.
• No Position Management Fee
  There is no hidden cost. The only cost that you need to pay is the trading fee for your portfolio.
• You Can Use GT Points to Pay the Transaction Fee
  1 point can be used to deduct 1 USDT from your trading fee. As the real cost of 1 point is essentially lower than 1 USDT, using points to reduce your cost can be a very profitable option.
• Easy Portfolio Management
  It allows users to adjust the amount of investment according to their preferences.
• Precise Time Setting
  While you can use the periodic investment strategy manually, there is no guarantee that you're going to be able to time the market perfectly every single time.
  Therefore, Gate.io Periodic Investment Plan could help you be more consistent with the automatic system. It supports five types of investment periods, such as daily, weekly, biweekly, monthly, and hourly.
• Redeemable at Any Time
  There is no T+1 rule and the funds are not frozen. You can start and redeem a portion of your entire coins at any time you wish.
• Unique Redemption Rule to Maximize Income
  Your redemption order will be placed at 99% of the market price as a limit order. If the order is not fulfilled immediately, the unfilled portion will be canceled.
  The system will repeat the process 1 minute later and will continue doing so until all shares specified by the user are redeemed. This way, you can minimize the negative impact of big orders and get as much profit as possible.

The Risks of Gate.io Periodic Investment Plan

Apart from the potential benefits, it's important to understand that Gate.io Periodic Investment Plan is not without risks. Here are some things that you need to consider beforehand:

• It Is Not Principal Guaranteed
  There is no guarantee of a minimum return of principal. If you make a bad investment and the valuation of the invested portfolio turns out to be lower than the cost, you would lose your principal.
• Not Timing Market
  Keep in mind that the price of the asset you choose is subject to change, so it can rise or fall dramatically over a certain period of time. Investing in a certain asset repeatedly at a set of time and interval does not guarantee that the price will always be favorable.
• Not Exactly More Profitable Than A Lump Sum
  In some cases, it can even be more pricey than the lump sum, especially when the market keeps rising all the way.
• Liquidity Risk
  Even though Gate.io uses an immediate or cancel order to redeem the portfolio and minimize the market impact, there's still a possibility to get an undesirable price due to the low liquidity market. Also, the time for redemption might take longer than usual.

Case Example of Gate.io Periodic Investment Plan

For example, Sally is new to the crypto world and she wants to invest in bullish BTC for the long term. Since she just started her journey, she finds herself a little confused as to where and when to purchase the coins.

She then decided to try Gate.io Periodic Investment Plan to make a long-term investment. Let's say, on July 1st, the price of 1 BTC was 4,000 USDT.

She set an investment order of automatically purchasing 500 USDT's worth of BTC at 12:00 AM on the first day of each month starting from the month of July.

Referring to the graph above, the price of BTC went up in the following three months. This means that by October 1st, Sally had invested 1,500 USDT which is equal to 0.625 BTC periodically.

So if she redeems her holdings right away, then she'll get BTC holdings at the price of 5,000 USDT on this day, earning her a yield rate of 108.3%.

Now, look at the graph below.

If she didn't use the periodic strategy and decided to invest the whole 1,500 USDT on July 1st and sold all of her holdings at the price of 5,000 USDT in October, she would only get a yield rate of 25%.

This shows that the periodic investment strategy could help investors manage their risks in a volatile market like crypto.

You could buy the coins at a lower price with a fixed amount of funds and generate significant returns.

With that being said, period investment plan is a method suitable for all kinds of users, ranging from novice investors to experts.

For beginners, this strategy serves as a simple and convenient tool to save time and effort in thinking about when to enter the market and purchase the asset.

Meanwhile, veterans and professional investors can use the plan as an alternative to build their portfolios and reduce investment risks.

Long story short, Gate.io Periodic Investment Plan is highly flexible and easy to use. Investors can set their plans in just a few clicks and adjust the settings accordingly.

On top of it all, you can redeem your money at any time you want, making it an interesting "couch-potato investing" to try in the volatile market of cryptocurrency.

The Bottom Line

To a certain extent, cryptocurrency can indeed make you a millionaire in 2022, but it could also make you lose all your money if you're not careful.

Any investor should know that the biggest threat of the crypto market is the high volatility, in which the prices can rise or fall drastically very quickly.

This is why you need to have a good risk management system and a strong trading strategy to generate money – both of which can be realized by using the Gate.io Periodic Investment Plan.

Gate.io aims to provide a safe trading environment for worldwide investors and crypto holders. Periodic Investment Plan is one of Gate.io's asset management programs that can be used for all kinds of investors and help them achieve their goals.

By diversifying your portfolio, you could lower your risk of trading and get the maximum outcome from your investments. The strategy is also very flexible, so you can customize it according to your needs and even redeem the coins at any time you want.

All in all, Gate.io Periodic Investment Plan is a great feature for you to try out, but make sure to consider the risks before you invest.