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Binance has shared its perspective on two key strategies for crypto investing: dollar-cost averaging and HODLing.&nbsp;
The advice, published on the company’s <a href="https://www.binance.com/en/blog/community/the-long-game-of-crypto-strategic-allocation-to-digital-assets-6321051871371306106" target="_blank" rel="noopener noreferrer nofollow">blog</a>, 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 <a rel="noopener noreferrer nofollow" href="https://crypto.news/dollar-cost-averaging-bitcoin/">set amount at regular intervals</a>, regardless of market prices. This strategy helps investors mitigate the impact of market volatility by spreading purchases over time.&nbsp;
For example, an investor allocating $200 monthly to Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) 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.
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<h2 class="wp-block-heading" id="hodling">HODLing</h2>
HODLing, a term originating as a typo of “holding,” refers to <a rel="noopener noreferrer nofollow" href="https://crypto.news/hodling-is-not-enough-as-bitcoin-reaches-all-time-high/">buying and retaining cryptocurrency</a> regardless of short-term market swings. Binance emphasized that this approach relies on selecting fundamentally strong assets, such as Bitcoin and Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>), that have historically increased in value over the long term.&nbsp;
The note also said that <a href="https://crypto.news/tag/HODL/" target="_blank" rel="noopener noreferrer nofollow">HODLing</a> requires strong conviction in the asset’s future growth and isn’t suitable for everyone.
In addition to these strategies, Binance stressed the <a href="https://crypto.news/hedge-funds-structures-dont-work-in-crypto-opinion/" target="_blank" rel="noopener noreferrer nofollow">importance of diversification</a>. 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 (<a href="https://crypto.news/price/solana/" target="_blank" rel="noopener noreferrer nofollow">SOL</a>) and XRP (<a href="https://crypto.news/price/xrp/" target="_blank" rel="noopener noreferrer nofollow">XRP</a>).
Diversifying across multiple assets reduces exposure to the risks of any single investment.
To further manage risks, Binance recommended holding <a href="https://crypto.news/tag/stablecoin/" target="_blank" rel="noopener noreferrer nofollow">stablecoins</a> to navigate market downturns and exploring staking or yield farming to earn passive income.&nbsp;The company also advised investors to use secure storage solutions, such as hardware wallets, and to rely on portfolio trackers to monitor investments.
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Should I HODL or buy more crypto? Binance offers investment advice

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