$USDC
Dollar-Cost Averaging (DCA)
DCA is the practice of investing a fixed amount of money at regular intervals, regardless of market conditions. Instead of trying to predict tops and bottoms, you buy small chunks over time, averaging out your entry price. This approach not only reduces the stress of trying to time the market but also minimizes the impact of volatility.
Imagine buying BTC at its all-time high only to see it retrace, at least for a short period of time – painful, right? Now imagine you bought a little every week for the past year. Your average cost would likely be much lower, and you’d sleep better at night. Tools like Binance’s Auto-Invest feature can automate your DCA strategy.
HODLing
HODL is a legendary term born from a typo on a Bitcoin forum. HODLing means holding onto your crypto through thick and thin, resisting the urge to sell during market downturns – or upswings, for that matter. It’s a mindset as much as a strategy, rooted in the belief that crypto’s long-term trajectory is up, even if short-term movements are volatile.
A good HODL portfolio isn’t necessarily all BTC and ETH – it can include any promising projects that you’ve researched thoroughly. Diversification helps reduce risk and exposure to any single asset’s volatility.
