Investing can feel intimidating, especially if you think you need to “buy low and sell high” to win. Here’s a common approach among many long-term investors: instead of trying to time the market, they focus on consistent investing over time. [3]
They’re using a simple strategy called Dollar-Cost Averaging (DCA) - and it’s a core part of how Binaxity’s Investment Line of Credit (I-LOC) is designed to support disciplined investing — helping users stay focused on long-term goals without the pressure of timing the market. [1][2][3]
What Is Dollar-Cost Averaging?
Dollar-cost averaging means investing the same amount of money at regular intervals - no matter what the market is doing.
Let’s say you invest $1,000 every month. Some months, the price of your ETF might be higher, and you buy fewer shares. Other months, prices are lower, and you buy more. Over time, this may help manage price fluctuations and reduce the risk of investing a lump sum during a market high.
It’s not flashy. It’s not exciting. It’s designed to reduce emotional decision-making and promote consistent investing, regardless of market timing.
How Dollar-Cost Averaging Can Support Consistent Investing
Markets go up, down, sideways, and sometimes all in the same week. Predicting short-term market movements can be difficult, and many investors find it challenging to act consistently under uncertainty. DCA is designed to help address these challenges by:
Building a Habit: You invest regularly, just like paying a bill or setting aside savings.
Reducing Emotional Decisions: No more “should I wait until things settle down?”
Taking Advantage of Lower Prices: When markets dip, fixed-amount investing buys more shares — which may lower your average cost over time. [2]
Keeping It Simple: No charts, no timing, no second-guessing.
It helps automate your investing, supporting consistency without requiring constant market attention.
How I-LOC Applies DCA for Consistent Investing Over Time
With I-LOC, you set a monthly draw schedule - for example, $1,000 a month. That money is borrowed through your line of credit and allocated to a diversified ETF portfolio, which is designed to support long-term investment goals. Risk levels depend on market conditions and the ETF mix.
Here’s where it gets powerful: I-LOC is designed to support disciplined, automated investing by applying a dollar-cost averaging approach to your borrowed funds.
I-LOC helps automate your investing process, removing the need to time the market or manually schedule contributions. With consistent investing over time, your portfolio may benefit from compounding — though outcomes will depend on market performance. [2][4]
It’s a structured approach to investing built into your credit strategy — promoting consistency over time.
Hypothetical Scenario: How DCA Might Perform Over Time
This example uses historical QQQ performance for modeling purposes. That’s a $30,000 total investment. Based on historical data, that portfolio might have grown to over $195,000 over 10 years — assuming consistent returns and no withdrawals. This is a hypothetical simulation and actual outcomes will vary. [2][4][5]
This potential growth reflects the historical effects of consistent contributions, compounding, and ETF performance — which I-LOC is designed to automate through dollar-cost averaging.
Who Should Use DCA (Hint: Probably You)
If you’ve ever felt paralyzed by when to invest, or if you’ve been waiting for the “perfect time,” DCA is for you. It’s great for:
First-time investors who want a safe, steady approach
Self-employed folks or freelancers with variable income
Anyone tired of overthinking the market
And with a product like I-LOC, structured credit can automate monthly investing — without requiring upfront capital. This approach may help you invest consistently while working toward long-term goals. [2][3][4]
Put Your Borrowing to Work with a Long-Term Strategy
Dollar-cost averaging is a widely used investing approach that promotes consistency and may help reduce the emotional stress of market timing. When combined with a product like I-LOC, DCA becomes part of a structured, automated process designed to support long-term investing.
Want to explore how your monthly credit draws might perform over time? Try our simulator at Binaxity.com to see how consistent investing through I-LOC might align with your financial goals — all without trying to time the market.