Binance emphasizes two important strategies for investors to build a portfolio that is more resilient to market uncertainties: Regular Buying Strategy (DCA) and HODLing.
According to Binance, the regular buying strategy offers a more balanced investment approach over the long term by reducing the impact of market fluctuations. In this strategy, investors increase their cryptocurrency holdings by investing a fixed amount at regular intervals. DCA protects investors from emotional reactions by allowing them to buy more when prices are low and less when prices are high.
HODLing stands out as a strategy that aims to hold crypto assets for the long term. Binance states that HODLing is especially suitable for assets with solid fundamentals such as Bitcoin and Ethereum. This strategy requires the belief that the assets will gain value in the long term despite price fluctuations. However, Binance emphasizes that in order for HODLing to be successful, the investor must be patient and do detailed research.
The Two Strategies Can Be Used Together
Binance states that both strategies can be used together and offer an effective method for achieving long-term financial goals. Binance draws attention to the fact that investors should be psychologically prepared in order not to be affected by market fluctuations during this process, and states that emotions such as fear and greed can negatively affect investment decisions.