Dollar Cost Averaging on Binance — The best way to grow your crypto portfolio

How to Dollar Cost Average on Binance

Gal Mux

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Photo by Lukas Blazek on Unsplash

Let’s face it, many of us cannot afford to buy a huge chunk of Bitcoin in one go.

That could be because of the current high cost of living plus the other financial obligations that we may have.

But that should not be a hindrance to obtaining it as one can buy fixed or small amounts at different times. This habit will eventually build a crypto portfolio.

Buying fixed amounts of crypto at regular intervals and at different prices is called Dollar Cost Averaging ( DCA)

Example:

An employee that receives a monthly salary can choose to buy $50 worth of crypto at the end of every month regardless of the price.

They can do so by setting up a recurring buy on Binance using their Visa or Mastercard.

Benefits of DCA

When DCA a buyer is cushioned from experiencing huge losses.

Because they buy the asset at different prices. In the long run especially in bear markets, their entry prices balance out giving them an average entry price.

In this case, had they bought all their assets at the same high price, they would be suffering bigger losses. The assets they bought at relatively lower prices balances with those they bought at high prices cushioning them from severe losses.

A buyer is freed from being too concerned about the price.

Yes, crypto trading is no child’s play. And determining the perfect entry and exit price can prove to be cumbersome. I have even heard experienced traders say that you can’t beat the market and that a long-term strategy is always best. And I agree with them.

With DCA, a buyer sets to buy the asset regardless of the price. This saves them the trouble of having to read charts trying to decipher them etc.

DCA helps you save/ invest

A buyer can use DCA as a savings scheme. Do you have $10 or $20 that you would wish to put away? Buying small accounts of crypto consistently at intervals and then forgetting about them will in the long run…

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Gal Mux

Lover of all things reading, writing, farms & gardens, 🥭&🍍salsas, laughter, crypto, MJ & Beyoncé. https://www.buymeacoffee.com/GalMux