Dollar Cost Averaging (DCA) is the strategy used by professional investors to minimize stress and take advantage of volatility without needing to predict price increases or decreases.
1. What is DCA and why does it work?
Definition: Invest a fixed amount frequently (daily, weekly, or monthly), regardless of the market price.
Key advantage: When the price drops, you buy more units; when it rises, fewer. This smooths your average cost and avoids failed timing.
2. Step 1: Access Auto-Invest on Binance
Open the Binance app.
Go to the bottom menu and tap 'Finances', then 'Auto-Invest'.
Select 'Create a Plan'.
3. Step 2: Define your budget and frequency
Practical example:
$10 daily → you invest $300 per month.
$50 weekly → $200 per month.
Tip: Start with a small percentage of your portfolio (5–10%) and increase according to your comfort.
4. Step 3: Choose your assets
Option 1: 100% Bitcoin for pure exposure.
Option 2: Mix of 70% $BTC / 30% $ETH to diversify between the two major ones.
Option 3: Add 10% in stablecoins (USDT) if you want additional store of value.
5. Step 4: Set up alerts and review your plan
Alerts: Enable notifications to know when each purchase is executed.
Monthly review: Check your average cost and current value in 'History' of Auto-Invest.
6. Step 5: Maintain discipline
Don't check the price every day: Trust your plan and let Binance make the purchases.
Quarterly adjustments: If your portfolio grows significantly, review the percentage you allocate to DCA to avoid overexposure.
🔐 Pro Tip
Combine DCA with a mental Stop-Loss: decide in advance if there is a maximum tolerable loss level (for example, -20%) and stay calm if it triggers.
💬 Respond 'Ready!' if you have set up your DCA today and tag a friend who should try this strategy.
