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What is recurring investing?
Recurring investing refers to the method of investing a set amount of money on a regular basis, often on an automated basis, allowing the investor to gradually increase their exposure in line with a “time the market” approach. It often relies on a dollar-cost averaging (DCA) strategy to build their investment portfolio by investing fixed amounts on a regular basis. This method applies to both traditional and cryptocurrency markets, allowing investors to gain exposure to more assets at a lower average cost than if they were to make a lump sum purchase.
Binance offers two features to take advantage of the recurring investment strategy to manage your investment portfolio – recurring purchases and automatic investing. The following sections explain the difference between the two, provide tips to maximize your gains, and a guide on how to get started with recurring investing on Binance.
Three Key Advantages of Recurring Investing
Investing on a recurring basis has several advantages over investing in lump sums. Here are three key advantages of recurring investing.
1. Steady Portfolio Growth
Recurring investments ensure that your investments are distributed over time, allowing you to continually grow your cryptocurrency portfolio with new funds.
To be continued... #BINANCEACADEMY.