Surely you have heard the term DCA before. In today's article, we'll explain it in-depth and provide a detailed tutorial on how to apply this strategy on the Binance exchange using the Recurring Buy function. So, here we go!

What is DCA?

There are many options for trading on cryptocurrency exchanges. You can actively trade, stake your assets, lend your savings on some platforms, and earn passive income in mining pools. If you're starting to invest in these markets, you could try dollar-cost averaging, a risk-reducing alternative to active trading.

Dollar-cost averaging is a strategy that allows you to buy assets in regular quantities and at equal intervals to reduce the impact of market volatility, i.e., changing prices. For example, if you buy in bulk, you will lose if the asset you buy falls below the entry price. Still, with the Dollar Cost Averaging method, you can buy a certain amount even when the price is low, lowering the average price and being less affected by these price fluctuations.

Dollar-cost averaging is one of the best ways to eliminate the risk of investing at the wrong time. Although you may have invested at the right time, you might have chosen the wrong time for the buying price. However, when you buy with this method, you eliminate the risk of loss due to lower prices. Because instead of making your investments in bulk, you will divide them into parts and increase your chances of getting better results.

The most important advantage of the dollar-cost averaging method is that you don't have to follow the market. It is very difficult for traders to keep track of market timing, and it is a useful method for those who do not want to follow the market all the time.

There is no guarantee that this method will be successful. Other factors must be taken into account for success. For example, some critics argue that this method can lead to a loss of income in a bull market. However, this long-term investment strategy aims to hedge the risk for those who want to invest in the buy-and-hold method.

For example, BTC prices are constantly increasing. Looking at its graph, it has gained more value almost every year compared to the previous year. Therefore, when investors buy BTC for the long term, they can earn more profit by reducing the average cost in times of decline because it is also known to decrease in price during certain periods (like right now).

In general, successful strategies less affected by market price volatility can be developed with dollar cost averaging strategy. However, for this to happen, investors should adopt the buy-and-forget method and set an exit price from the position.

What is Binance Recurring Buying?

Recurring buying is an investment strategy based on the average dollar cost. This trading strategy allows users to automate the process of buying cryptocurrencies, reducing wasted time. With recurring buying, users can automate their purchases by choosing the cryptocurrency they want, how often they want to buy it, and when they want to buy it.

Binance recurring buying, also known as time-trading, has been developed as a trading strategy to help you manage your portfolio. The unpredictability of cryptocurrency markets makes it difficult for traders to know when to trade and when to enter and exit the market. With a recurring trading strategy, traders can reduce the impact of market volatility and eliminate the risk of wasting time trying to find the right moment.

With the Binance recurring trading strategy, you can invest at the right time, with a set amount of money, at regular intervals, and often automatically. You can use the dollar-cost averaging strategy to grow your Binance portfolio at regular intervals and low cost. This allows you to buy more assets for a lower amount instead of investing a large amount at once. Here are some of the advantages of the Binance recurring buying method;

• Users can set automatic buying positions using the Binance recurring buy method and eliminate the manual buying habit over time. 
• Using the average dollar cost in the recurring purchase method allows users to invest consistently and regularly. This helps portfolios grow steadily. 
• Recurring purchase settings can be made once and at set intervals. It only takes 5 minutes and can be completed in simple steps (step-by-step guide in the next sections).
• Users can place recurring buy orders for NFTs, fan tokens, and a wider range of products to easily enjoy the rest of the Binance ecosystem.

As seen above, with recurring trading, you can build your trading strategy with less risk, less market volatility, and less wasted time in the long run. Not only does it save you time, but it also saves you the stress of spending time on the market. Here are some of the other benefits of recurring buy with Binance:

It allows you to structure cryptocurrency portfolios using the average dollar cost method by making scheduled cryptocurrency purchases with Visa/Mastercard.

For your Binance recurring buy plan, you need to add your credit or debit card to your account. Here you have the option to define more than one card. The cards you define must be Visa or Mastercard capable. By defining these cards in your account and including them in your recurring buying plan, you can structure your portfolio according to the average dollar cost.

For example, you bought a cryptocurrency called X at 1 USD, and its value drops to 0.50 USD the next month. With a recurring purchase plan, you reduce the average cost of x as you buy both when it is 1 USD and when it is 0.50 USD. This allows you to avoid market volatility and restructure your portfolio for market downturns.

Automates trades in BTC and your favorite cryptocurrencies on a weekly, bi-weekly, or monthly basis

With Binance recurring buy, you can invest in your favorite cryptocurrencies, especially BTC. When creating your recurring trading strategy, you can choose to trade weekly, monthly, or bi-weekly. Here's how this plan works:

If you want to create a weekly recurring buy plan, and your plan date is Monday, and you set the selected buy date to Tuesday, your first buy will take place on Tuesday of the current week. After that, the next recurring purchases will automatically occur on the selected day of the week.

In a weekly recurring buy plan, if the entry date of the plan is Tuesday and you have placed a buy order for every Monday, your first buy will take place on Monday of the following week. The other purchases will take place on the selected day of the week, i.e., every Monday.

When you want to make a recurring purchase every two weeks, if you created the plan on Monday and set the purchase date as Tuesday, your first purchase will be made on the first Tuesday of the week you placed this order. Subsequent recurring purchases will be made on Tuesdays every two weeks.

When you place a recurring buy order monthly, if the date on which you schedule the booking is, for example, the 10th of the month and you place the buy order for the 11th of the month, your buy will be executed the very next day, and the next one on the 11th day of each month.

Recurring buy plans can be easily modified, paused, and canceled.

The recurring buy strategy allows you to manage your Binance portfolio easily and can be easily changed, paused, or canceled. By viewing your desired trading plan from an app or website, you can easily change it from there. You can use this to change your preferences for the buy date, amount, or frequency.

Let's say there is a bullish expectation in the markets or an uptrend. You can pause your recurring buy order if you don't want to buy during this period. You can either pause it until a certain date or until you reactivate it.

If you have changed your trading strategy and no longer wish to buy repeatedly, you can cancel your buy orders quickly and easily. Just click on the trading plan you have already created to do this.

How Does Dollar Cost Averaging for Recurring Buy Work?

When we look at the historical prices of cryptocurrencies, we see that they always rise in the long term. For example, while BTC price averaged $4 in 2012, it continues to be traded in the range of #20,000 - #22,000 in 2022. This means that when invested long-term, the price of crypto assets increases, and investors benefit.

The dollar-cost averaging method also allows investors to profit in the long run, regardless of market crashes and other unfavorable conditions, by buying in small chunks instead of making large purchases. Let's explain how dollar cost averaging works with an example:

An investor buys any crypto asset for six months using the dollar-cost averaging method. This investor would invest 300 dollars every month. Accordingly, let's calculate his earnings based on the asset price sample as follows;

• Three units are purchased in the first month if the crypto asset is 100 dollars.
• In the second month, he buys 2.5 units of this asset, which is 120 dollars.
• In the third month, he buys 3.75 units of the same asset at $80.
• The fourth month buys 3.33 units of this asset at $90.
• In the fifth month, buys 2.72 units of this asset at $110.
• In the sixth month, he buys 2.6 units of this asset at $115.

By the sixth month's end, the investor had bought 17.9 units. In this case, at the end of the 6th month, he holds a total investment of 2,058.5 dollars. Since he invested 1800 dollars in these six months, he gained 258.48 dollars in 6 months with the recurring purchase.

Our investor in the above example has made a profit without caring about the market price of the crypto asset he bought. He also profited from this asset even if it did not reach an all-time high. Recurring purchases are, therefore, investment strategies that can pay off in the long run.

Why Should You Use Recurring Buy for the DCA Strategy?

The purpose of using a recurring buy for the DCA, or dollar cost strategy, is to make it easier to manage your portfolio. A recurring buy order can be placed multiple times and for multiple cryptocurrencies. This order saves you the hassle of researching the market, determining the right time, and exiting the market at the right time. =

You can use this method to reduce your buying costs and increase your holdings, especially when the markets are risky, frequently declining, or in the bear market season. In addition to reducing the risk of market volatility and making a profitable investment in the long term, the other advantages of using a recurring buy for the dollar strategy can be found below:

Convenient, Flexible and Easy

More than 50 cryptocurrencies are supported in the recurring buy. Binance has also announced that it will regularly add new coins every two weeks. With recurring buy, you can easily place orders for the cryptocurrencies you like and want to buy.

Placing a recurring buy order is easy because it's done automatically. This saves you the hassle of making manual purchases. It's flexible because you can place buy orders for any period. You can place a buy order monthly, weekly, or bi-weekly and buy as much cryptocurrency as you want. This method is also very convenient because you can set the time, day, and hour you want to buy. You can purchase any amount at any time and in any cryptocurrency.

Stable Portfolio Growth

Recurring buying allows you to control the dollar-cost averaging by making purchases at regular intervals rather than all at once. No matter what happens in the market, this method allows you to stay in and even smooth out any price fluctuations. Furthermore, as you invest a set amount at regular intervals thanks to recurring purchases, your crypto assets, i.e., your portfolio, will gradually grow over time. With this growth, you can also avoid the impact of a volatile market and increase your crypto wealth.

With recurring purchases, you can spread your investments over time and regularly grow your portfolio in new funds. The blockchain world is growing and evolving every day. This development leads to the growth of cryptocurrency projects. Growing projects increase your income, profits, and token prices. With recurring buing, you benefit from this growth as you invest over a wider time horizon and regularly increase your holdings.

Disciplined Savings

Impulsive trading in the cryptocurrency markets carries a high risk of loss for any trader. An investor may be overcome by emotion and sell impulsively, or by fear and fail to take advantage of price drops in the market. However, with recurring investments, the amount to be invested and the intervals are known months in advance, which prevents investing with emotions.

With recurring trading, you can invest in a disciplined way, regardless of market conditions and without acting on your emotions. You can think of recurring purchases as a piggy bank or regular savings account. Just as your savings grow in a disciplined way when you put money in your piggy bank every month or at regular intervals, you can expand your crypto piggy bank with recurring purchases and enjoy profitable long-term investing.

Reducing Risk

In the cryptocurrency markets, it is not always possible to predict what the returns will be. Therefore, if you invest a large amount at once, the loss during the market decline will also be large. However, with recurring buying, you can hedge against market volatility by buying in small chunks rather than all at once. This allows you to manage the effects and risks of volatility better.

When you divide your investments into small chunks, you can make monthly, weekly, or bi-weekly investments within your financial means. This allows you to reduce or increase your investments according to your current financial situation.

In addition to the above, recurring buying gives you easy access to the Binance ecosystem. To expand your crypto portfolio, you first need to build a crypto stockpile, which you can do with recurring trading. After that, you have the opportunity to buy your first NFT and use other Binance products such as yield farming, staking, launchpad, and trading. With these products, you can maximize your recurring purchase earnings.

How to Subscribe to Recurring Buy on Binance?

You can use your mobile app and the website to sign up for a Binance recurring buy. You can place a recurring order and start expanding your portfolio right away in a few short and easy steps. Let's explain how to register for recurring buying on both the app and the website"

To register for a recurring buy via the mobile app:

1. Log in to your Binance account and click on the app's homepage "Credit/Debit Card" option. Select the crypto asset you want to buy and enable the recurring buy section on the screen.

2. If you don't have a Binance account yet, you can click this link to create one with a lifetime 20% commission discount.

3. In the second step, set the recurring buy frequency. For example, choose between weekly, monthly, or bi-weekly and set the day and time of your purchase.

4. Select the fiat currency you want to buy. Proceed by selecting one of the more than 40 fiat currencies for the cryptocurrency you want to buy.

5. In this step, choose your payment method. Currently, you can pay with Visa or Mastercard. You can use one of the cards defined in your account for a recurring purchase or add a new card here. Note that you can add up to 5 cards in this section. If you want to add more than five cards, you will need to remove one of the existing cards.

6. In the last step, you can check and confirm the details of your recurring buy order. The reason why this step is short and easy is that the price is constantly updated. The price and amount of cryptocurrency you buy will be recalculated just a minute after the purchase, so you should be able to complete this step quickly.

After order confirmation, you have now placed your recurring buy order. You can also view your order history to check the status of this plan.

To sign up for recurring trading using the website:

1. Log in to your Binance account, hover over the "Buy crypto" section on the main page, and then click the "Credit/Debit card" section.

2. Activate the recurring purchase option you'll see on the page that opens. 

3. At this stage, select the fiat currency you want to use and the cryptocurrency you want to buy and continue.

4. Click on the recurring purchase option to set your purchases' frequency, day, and time.

5. You can add a new card or use your existing card at this step. You can also define a new card using the "Change card" section. Here the list of your saved cards will be displayed. Simply tap the trash can icon to remove a card from this list. Please note that if the card you want to remove is included in another recurring purchase plan, you must cancel the plan before removing this card.

6. Once you have added or changed your credit or debit card, click continue.

7. Check the order details on the next page and confirm it within one minute. If you miss this time, the price of the cryptocurrency you want to buy will be recalculated. You can click "Refresh" to see the latest market price.

8. Once you confirm, you're done. You will be notified when your recurring buy order is ready.

9. If your purchase fails after registering for a recurring buy order, you must accept the new offer. To do this, you must click the "Accept New Quotation" button on the screen. If you don't want to do this, click on "Cancel Payment".

How to Manage Binance Recurring Buy Plan?

You also have the ability to manage your recurring purchase plan on the Binance website or app. You can stop, cancel, view, change the payment frequency, day, or time. To do all this, you can follow the steps below.

1. To view your recurring trading plan, you need to log in to your account, go to the "Orders" section and then to the "Crypto trading history" page.
You'll see a list of your recurring plans on the page that appears. To make an edit, click on "View plan" next to the recurring buy order.

2. To change the plan that appears on the screen, go to "Manage". Here you can view the frequency of your plan and change it. You can even stop the plan completely. You can set the payment day, date and time of your plan in this section.

3. To change the plan, go to the "New Plan Information" section and click "Continue". Enter your new order information and confirm it after checking. Your 2FA devices will also need your consent to approve this request.

4. To stop your recurring trading plan, simply scroll down to the "Manage" section and click on "Stop Recurring Buy Plan". Once you finally confirm this action, your buy order will be stopped.