A STEP BY STEP GUIDE ON HOW TO DCA ON BINANCE.
As Crypto market entered bear season daily trading may not yield a good result to investors but there is some other investment strategy that will be less stressful most especially to those that can hold long term position, in this article I will introduce BINANCE DCA investment strategy which provide more flexible way to overcome some risk in your investment.
WHAT IS DCA:
It is an investment strategy in which investor divides the total investment amount and purchases a target asset at regular intervals. The purchases go on targeted interval regardless of the asset price, this continue until the investment amount is exhausted.
HOW DCA WORK:
To fully understand how DCA work lets take a practical example, assuming you are willing to invest $6,000 in a token and you decided to be buying everyday the total investment amount will be divided into chunks let say $100s that is it will be divided into 60 chunks where $100 order will be executed everyday regardless of the coin price, in this case the order will continue executing everyday for 2 months and you will be buying with different price range, with this strategy we will build up a long-term position while the downtrend runs its course and we have also mitigated some of the risks of buying in a downtrend.
BENEFITS OF DCA:
If you are beginner or decided to run a longer term investment Dollar Cost Averaging will help you reduce the investment risk.
It also help you to overcome stress of the active trade as your trading will be executing once at a chosen interval of time.
It will help you to get your total asset in a reasonable price as your order will continue executing in different price range.
HOW TO DCA ON BINANCE:
You can DCA on Binance with Recurring buy feature which allows users to easily buy a fixed amount of cryptocurrency over a set interval of time which you can scheduled via VISA/MasterCard.
STEPS TO SET A RECURRING BUY ON BINANCE
✓ Select debit/credit card
✓ Select crypto and enable Recurring Buy
✓ Select your fiat currency
✓ Set up the frequency
✓ Select your payment methods
BOOM 💥💥💥 SET YOUR RECURRING BUY
You will grow your portfolio by automating your favourite cryptocurrencies purchases on a daily, weekly, bi-weekly or monthly basis using Binance Recurring Buy.