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

Binance shared its views on two key strategies for crypto investing: dollar cost averaging and HODLing.

The notice, published on the company’s website blogaims to guide investors through the volatile cryptocurrency market with a focus on long-term success.

According to Binance, cost averaging involves automatically investing a set the amount at regular intervalsregardless of market prices. This strategy helps investors mitigate the impact of market volatility by spreading purchases over time.

For example, an investor allocating $200 per month to Bitcoin (BTC) buys fewer units when prices are high and more when prices are low, averaging the overall cost. Binance suggested automating the process through features offered by crypto exchanges, making it a convenient way to accumulate assets over time.

HODLing

HODLing, a term originating from a typo of “holding”, refers to buy and hold cryptocurrencies regardless of short-term market fluctuations. Binance emphasized that this approach relies on selecting fundamentally strong assets, such as Bitcoin and Ethereum (ETH), whose value has historically increased over the long term.

The note also said that HODLing requires a strong belief in future asset growth and is not suitable for everyone.

In addition to these strategies, Binance highlighted the importance of diversification. A balanced portfolio might include Bitcoin as a store of value, Ethereum for its smart contract capabilities, and other growth-focused tokens such as Solana (GROUND) and XRP (XRP).

Diversifying across multiple assets reduces the risk exposure of a single investment.

To better manage risks, Binance recommended holding stable coins to weather market downturns and explore staking or yield farming to earn passive income. The company also advised investors to use secure storage solutions, such as hardware wallets, and rely on wallet trackers to monitor investments.