POSITION · RISK · DCA?

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All ten articles, in three groups: sizing a position, running a DCA plan, and doing it on Binance. Each one answers a single question and can be read on its own.

How much to put in, how to split it, when to sell

Each of these three has a formula. To run it on your own numbers, use the position sizer.

Position cap

How much should I invest in bitcoin as a beginner?

Take emergency money, near-term spending and high-interest debt out of your savings first, then work back to a cap for this buy: acceptable loss ÷ assumed worst drop. With a table of 16 results for $100,000 and a note on which of them get capped at 10%. Beginners start at 1%–3%.

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Allocation

Core-satellite crypto portfolio: how much in large caps vs altcoins?

70%–85% in bitcoin and ethereum, 15%–30% across altcoins. Two template splits (85/15 and 70/30), the arithmetic of a 15% satellite drifting to 30%, and two ways to rebalance: by calendar or by threshold.

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Take profit · Stop loss

When to take profit and when to cut losses in crypto

Taking profit: to get your original stake back, sell average cost ÷ current price, which is half the position at 2×. Cutting losses: two exit conditions that don't depend on the chart. Also what to do when your share goes over the cap, four things to do first in a crash, and a sell-rules checklist.

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DCA: is it worth it, when to pause, how often to buy, how to measure the return

To see how much a DCA plan commits in total and how large the paper loss could get under a drawdown you assume, try a run in the DCA calculator.

DCA · vs lump sum

Is bitcoin DCA worth it? DCA vs lump sum in two real markets

The same $5,000 in bitcoin: in the stretch that fell and then recovered, monthly DCA returned +4.91% and a lump sum −31.10%; in the rising stretch, DCA returned +15.35% and the lump sum +118.73%. Also what to do if the price looks too high now, and who can buy in one go.

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DCA · Bear market

Should you pause DCA in a bear market? Stop, skip or keep buying

One 10-buy DCA plan run three ways: stop after the 4th buy and it ends at −12.97%; skip three buys along the way, −2.48%; make all ten, +4.91%. That stretch fell and then recovered; had the price kept falling, stopping would have lost less. Also when you really should pause, and whether to double up as the price falls.

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DCA · Frequency

Should you DCA weekly or monthly? Daily, weekly and monthly buys compared

Look at per-buy costs and your payday first. Includes a per-buy cost table, how each buy's weight works out to 1/n, and the intervals and month-end rule on Binance Convert Recurring.

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DCA · Returns

How to calculate your DCA return

In a 10-buy worked example the DCA return is +4.91% while bitcoin fell 31.10% over the same months, and neither number is wrong. The month-by-month figures show what average cost, simple return and XIRR each answer.

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DCA · Holding period

How Many Years to DCA Bitcoin to Avoid a Loss? A Backtest

Buying BTC at each month-end close since Aug 2017, 30.3% of start months were still down at 12 months, 25.3% at 24, 8.0% at 36, and 0 of just 63 at 48.

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Doing DCA on Binance

One article each on setting up a recurring plan, the execution and cancellation rules, and opening an account.

Binance · Setup

Binance Auto-Invest (Now Convert Recurring): How to Set It Up

Auto-Invest's single-token and portfolio plans have moved into Convert as Recurring buys. Six steps cover where to find it now, which plan type to pick, setting the amount and frequency, and how the cost works now that there is no separate fee.

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Binance · Execution rules

When does Binance Recurring Buy execute? Low-balance rules

When a scheduled buy doesn't run, check three things first: the execution minute hasn't arrived yet; the balance was short for this round; the plan was paused or cancelled. The minute follows the minute you created the plan, and a plan is cancelled only after six straight months of failed rounds. The full five-step order is at the end of the article.

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Binance · Account

Before You DCA, Get the Account Right: Binance Signup, Verification and Security

What to have ready before you register: email, ID and an authenticator app. What identity verification asks for and what to check first if it is rejected. And the security settings for a DCA account you may not log into for months: authenticator, anti-phishing code, withdrawal whitelist.

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Risk warning: crypto prices are extremely volatile and you can lose your entire principal. The content on this site is investor education and a roundup of common practices, not investment advice, and is not responsible for any investment outcome. Past performance does not indicate future returns.

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