Should I HODL or buy more crypto? Binance offers investment advice
Should I HODL or buy more crypto? Binance offers investment advice
should-i-hodl-or-buy-more-crypto-binance-offers-investment-advic
should-i-hodl-or-buy-more-crypto-binance-offers-investment-advice
Binance has shared its perspective on two key strategies for crypto investing: dollar-cost averaging and HODLing.
The advice, published on the company’s blog, aims to guide investors through the volatile cryptocurrency market with a focus on long-term success.
According to Binance, dollar-cost averaging involves automatically investing a set amount at regular intervals, regardless of market prices. This strategy helps investors mitigate the impact of market volatility by spreading purchases over time.
For example, an investor allocating $200 monthly to Bitcoin Bitcoin
Bitcoin buys fewer units when prices are high and more when they are low, averaging out the overall cost. Binance suggested automating the process through features offered by crypto exchanges, making it a hands-off way to accumulate assets over time...
HODLing
HODLing, a term originating as a typo of “holding,” refers to buying and retaining cryptocurrency regardless of short-term market swings. Binance emphasized that this approach relies on selecting fundamentally strong assets, such as Bitcoin and Ethereum Ethereum
Ethereum, that have historically increased in value over the long term.
The note also said that HODLing requires strong conviction in the asset’s future growth and isn’t suitable for everyone.
In addition to these strategies, Binance stressed the importance of diversification. A balanced portfolio might include Bitcoin as a store of value, Ethereum for its smart contract capabilities, and other growth-oriented tokens such as Solana Solana
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