crypto.news
2024-12-13 20:42:46

Should I HODL or buy more crypto? Binance offers investment advice

Binance has shared its perspective on two key strategies for crypto investing: dollar-cost averaging and HODLing. The advice, published on the company’s blog , aims to guide investors through the volatile cryptocurrency market with a focus on long-term success. According to Binance, dollar-cost averaging involves automatically investing a set amount at regular intervals , regardless of market prices. This strategy helps investors mitigate the impact of market volatility by spreading purchases over time. For example, an investor allocating $200 monthly to Bitcoin ( BTC ) buys fewer units when prices are high and more when they are low, averaging out the overall cost. Binance suggested automating the process through features offered by crypto exchanges, making it a hands-off way to accumulate assets over time. You might also like: Exclusive: Vlad Gorbunov, founder of Choise.ai ecosystem, discusses new meme bank platform that brings utility to meme coins HODLing HODLing, a term originating as a typo of “holding,” refers to buying and retaining cryptocurrency regardless of short-term market swings. Binance emphasized that this approach relies on selecting fundamentally strong assets, such as Bitcoin and Ethereum ( ETH ), that have historically increased in value over the long term. The note also said that HODLing requires strong conviction in the asset’s future growth and isn’t suitable for everyone. In addition to these strategies, Binance stressed the importance of diversification . A balanced portfolio might include Bitcoin as a store of value, Ethereum for its smart contract capabilities, and other growth-oriented tokens such as Solana ( SOL ) and XRP ( XRP ). Diversifying across multiple assets reduces exposure to the risks of any single investment. To further manage risks, Binance recommended holding stablecoins to navigate market downturns and exploring staking or yield farming to earn passive income. The company also advised investors to use secure storage solutions, such as hardware wallets, and to rely on portfolio trackers to monitor investments. You might also like: Sui expands RWA tokenization with Ant Digital Technologies partnership

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