Hey Binance Family👪

How are you today?

Let's jump into Day 2 of the 10-day educational series...

Day 2: What Is Dollar-Cost Averaging?

The major reason investing in crypto can be challenging is that it's almost impossible to perfectly time the market to buy or sell crypto tokens, LONG or SHORT futures contracts.

DCA which means Dollar-Cost Averaging is a strategy that makes it easier to deal with uncertain markets by making purchases automatic(Auto Invest/Re-occurring buy) or at predetermined grids(Grid Trading).

By using dollar-cost averaging, investors lower their average cost per token and reduce the impact of volatility on their portfolios, thus eliminating the need to attempt to time the market to buy at the best prices.

Hence it's noteworthy as one of the most commonly preferred strategies to accommodate volatility.