WHAT IS DOLLAR-COST AVERAGING (DCA)?
13/04/2022
By Damilola Ogungbayi
Table of contents:
- What is Dollar Cost Averaging (DCA)
- What is Binance Recurring Buy
- Why use Recurring Buy to DCA?
- How to sign up for Recurring Buy?
- How to use Recurring Buy?
- How to manage Recurring Buy?
WHAT IS DOLLAR-COST AVERAGING?
Dollar-cost averaging is an investment strategy that aims to reduce the impact of volatility on the purchase of assets. It involves buying equal fiat amounts of the asset at regular intervals.
The premise is that by entering a market like this, the investment may not be as subject to volatility as if it were a lump sum (i.e., a single payment). How so? Well, buying at regular intervals can smooth out the average price. In the long term, such a strategy reduces the negative impact that a bad entry may have on your investment. Let’s see how DCA works and why you might want to consider using it.
WHAT IS BINANCE RECURRING BUY?
Recurring Buy allows users to automate the buying of crypto. It is a dollar-cost averaging (DCA) investment strategy which allows users to choose the cryptocurrency they want to purchase, the amount they want to buy, and how often they would like to buy.
With Recurring Buy, users can save the hassle of making purchases manually over time by setting automatic cryptocurrency purchases.
With recurring buys, Binance users can:
- Dollar cost average their cryptocurrency portfolio by making scheduled cryptocurrencies purchases via VISA/MasterCard (currently, we only support VISA/Mastercard payment method).
- Automate their BTC and favourite cryptocurrencies purchases on a daily, weekly, bi-weekly or monthly basis.
- Modify, pause and cancel their recurring buy plans easily.
WHY USE BINANCE RECURRING BUY?
1.Convenience & Flexibility:
No more hassle of manual purchases with the automated function. You can also choose between weekly, bi-weekly or even monthly purchases and what kind of cryptocurrencies you want to buy beforehand. Recurring Buy supports 50+ cryptocurrencies. In addition, every biweek, Binance will add new and popular Recurring Buy coin listings.
2.Steady Portfolio Growth:
The strategy behind Recurring Buy is dollar-cost averaging (DCA), where you invest money gradually at regular intervals rather than all at once. Regardless of the market climate, the DCA strategy allows you to stay in the market and help smooth out the price swings that can sometimes occur. Through consistent investments at periodic intervals, Recurring Buy enables you to gradually grow your crypto wealth over time and avoid the impact of a volatile market.
3.Disciplined Savings:
With Recurring Buy, users can save the hassle of making purchases manually and instead automate cryptocurrency purchases.
4.Risk Reduction:
Through using Recurring Buy you can reduce the impact of market volatility, lower risk of purchasing at a less than ideal timing, and steadily grow your crypto portfolio through long-term appreciation.
5.Easy Access to the Binance Ecosystem:
The first step to expanding your crypto portfolio is getting your stash of crypto ready, and you can do so via Recurring Buy or depositing fiat. Afterward, maximize gains for your recurring crypto purchases via other Binance products such as staking, yield farming, trading, launchpads/ pools, or even purchasing your first NFT.
HOW TO SIGN UP FOR RECURRING BUY?
Step 1: Choose Your Crypto & Enable Recurring Buy
Log in to your Binance account and tap on the [Credit/Debit Card] option on the app homepage. Next, choose the crypto you would like to purchase and enable the Recurring Buy feature on the same page.
For web users, simply tap on [Buy Crypto] on the top header of the homepage, and choose Credit/Debit Card
Step 2: Select your preferred fiat currency
Choose from over 40+ fiat currencies and pick your preferred local currency.
Step 3: Set up the frequency
Tap on the date on the same page, and choose between weekly, bi-weekly or monthly intervals. You can also select the day and time for your Recurring Buy.
Step 4: Select your payment methods
We currently accept Visa or Mastercard payments. You can choose to use one of your existing cards or add a new card.
Note: You can only save up to 5 cards. If you want to add any additional cards, you will need to remove your existing cards first. In the event that the card is used for recurring buy, you will need to cancel your recurring buy plans to proceed.
Step 5: Confirm your order details
Check and confirm your order details in one minute, as after one minute, the price and the amount of crypto you will get will be recalculated. Tap [Refresh] to see the latest market price. After you confirm your order details, you are all done. You can visit your order history to check the status of your recurring buy plan.
HOW TO USE RECURRING BUY?
STEP 1:
Log in to your Binance account and click [Buy Crypto] - [Debit/Credit Card].
STEP 2:
You will see the [Recurring Buy] option. Click to toggle on the button next to it to enable the feature.
STEP 3:
Select the fiat currency you want to use and the cryptocurrency you want to purchase.
STEP 4:
Click [Recurring Buy]. You can automate your crypto purchases weekly, bi-weekly, or monthly. You can select the day and time for the recurring purchase, too.
STEP 5:
To add a new card, click [Add New Card] and enter your card details.
Or you may use a different card by clicking [Change Card].
You will see a list of your saved cards. Click on the delete icon to remove the card.
You can only save up to 5 cards, and only Visa and Mastercard Credit/ Debit cards are supported.
Please note that if the Credit/ Debit card you want to remove is linked to any of your existing Recurring Buy plans, you will be prompted to cancel the plan first before you can remove the card.
STEP 6:
Once you have successfully added your Credit/ Debit card, click [Continue] to proceed.
STEP 7:
You will see the order details. Check and click [Confirm] within 1 minute. After 1 minute, the price and the amount of crypto you will get will be recalculated. You can click [Refresh] to see the latest market price.
STEP 8:
You might be redirected to this page when we process your order. You can check your order status by clicking [View history] or [Refresh].
STEP 9:
Once your Recurring Buy order is ready, you will be notified.
If your purchase failed, you can choose to [Accept New Quotation] based on the new quotation shown on the page, or click [Cancel Payment] to cancel the order.
HOW TO MANAGE RECURRING BUY
STEP 1:
To view your Recurring Buy plans, go to [Orders] - [Buy Crypto History].
Please note that you won’t be able to edit or stop the Recurring Buy plans within 5 minutes before or after the order is processed.
STEP 2:
Click [View Plan] next to the Recurring Buy order you wish to change.
STEP 3:
Click [Manage]
STEP 4:
Here you can review or modify the frequency of the plan, or stop the plan completely.
To change your plan:
4.1 Choose the new plan details and click [Continue] to confirm the modification.
4.2. Please check the order details carefully before confirming your new Recurring Buy plan.
4.3. Verify your request with your 2FA devices.
To stop your plan:
4.4. Click [Stop Recurring Buy Plan].
4.5. Click [Confirm].
Please note that your recurring purchase will be stopped immediately.
CONCLUSION
Users can save themselves the extra work of making purchases manually over time by setting automatic cryptocurrency purchases with the Recurring Buy function on Binance
If you’re looking for a quick and hassle-free way to automate your crypto purchases, Recurring Buy is the answer.
Click on the link below to get started
https://www.binance.com/en/buy-sell-crypto?channel=card&f
iat=EUR&recurring=open?ref=331234001
