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.
