Exploring more of DCA (Dollar Cost Averaging) in Crypto
Investment is a journey and we should keep it ongoing to build a bigger corpus in long term. There are very rare options where we can invest once and get huge returns in a certain period. Although there are many investment instruments where we can do onetime investment and then start waiting for return until maturity we can earn approx 10-15% however with disciplined investment a way better returns can be achieved.
DCA (Dollar Cost Averaging) is one of the methods that can help us to achieve the goal provided we follow the discipline with the investment and continue to do this for the set period. This time should be long and probably need not be less than 5 years. Anything investment for short is not an investment and long term is not less than 5 years. I have seen people over here who suggest DCA is best and I find it interesting. Until now I have been investing when it is dumped in the market and then HODL but seems not I need to upgrade myself here.
Many exchanges are providing the option to buy crypto through DCA however they are using different words for the same but the purpose is the same. I mean this method allows us to buy periodic with the amount we have set up and it does not require manual intervention.
Dollar-cost averaging is an approach to investing that involves periodically investing a set amount of money regardless of the market price of the securities being purchased. It is often associated with passive investing strategies in which the investor wants to minimize the time they must spend in administering their portfolio.
Now even finance has added this option which means exchange sees this feature as a need where investors can invest automatically for any amount they want and even for the period that they want to go for. Here is the snapshot from balance where we can set the crypto we can invest in with a pre-determined amount and with this way we can keep on accumulating more coins in a portfolio.
Source Link- https://www.binance.com/en/savings/auto-invest
We can see all leading coins to buy through auto-invest in the exchange and it also shows the past performance of the coin. For example, BNB's historical ROI is 1520.52% in the last 3 years and this is just amazing.
Binance has provided 4 options for the period and its from 3 months to 3 years which I think is fair to have because any DCA for less than 3 months is not good and 3 years is anyways a very good amount of time. When I click on create a plan then it asks for the information to fill in.
- Subscription amount and the minimum is 10 USDT/BUSD
- Recurring Cycle
- Option to choose between USDT or BUSD
- Time to execute the first buy
As of now I am exploring the options and have yet to decide what coins I need to put on the list for DCA and HIVE is not on the list. Wish this gets added soon to this list so that buying it can be so easy and I am able to accumulate more hive automatically.
I will be starting this soon and hopefully with DCA I will be able to buy some nice coins or even one coin depending on what I choose to buy. Its always good to adopt new ways of investing and I am trying to do the same so that I also stay updated with the latest trend in crypto investment.
Thank you so much
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