#BinanceTurns8 DCA (Dollar-Cost Averaging) Strategy
Purpose:
Minimize the impact of volatility by investing a fixed amount regularly, rather than all at once.
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✅ Basic Strategy Steps:
1. Choose Your Asset:
Example: BTC, ETH, or any fundamentally strong stock/coin.
Ideal for long-term investments.
2. Set a Budget:
Decide your total capital (e.g., $1,000).
Break it into smaller parts (e.g., $100 per week or $200 per month).
3. Pick an Interval:
Daily, weekly, or monthly.
Common: Weekly DCA every Monday.
4. Stick to Your Plan:
Buy the asset regardless of price.
Do not try to time the market.
5. Track Performance:
Use an Excel sheet or app to monitor average buying price.
Helps you evaluate profitability over time.
6. Set a Time Period:
Commit for a fixed period (e.g., 6 months or 1 year).
Don’t stop midway due to market noise.
7. Optional - Add a Dip Strategy:
If price drops 10–20%, you can double your DCA amount on that drop only.
Helps improve average cost in downtrends.
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📊 Example:
Capital: $1,000
Duration: 10 weeks
Weekly Investment: $100
Asset: BTC
No matter the BTC price, you buy $100 worth every week.
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📌 Benefits:
Reduces emotional decisions
Avoids buying at peak
Builds position over time
Great for beginners or volatile markets
