Strategic Allocation in Crypto: DCAing and HODLing Explained

Ever heard the saying, “It’s not about timing the market, it’s about time in the market”? This is where strategic investing comes in.

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.